In our first FBO BookClub review we presented a pretty downbeat picture about global growth prospects. Starting with Moore’s law, Brynjolfsson and McAfee – in the “Second Machine Age” project much more optimistic picture where advanced machines make human life even easier and abundant. They see future world as one of constantly connected devices that use big data to enable us something we could only watch in sci-fi movies.
They present a journey trough companies which develop these new advanced technologies. They test drove Google car, they presented collaborative GPS systems and, among other, they also discuss 3D printed future. For them these new advances will fundamentally change the way we live our lives. They see our time as an inflection point to the “Second Machine Age”. In contrast to Cowen, they don’t see progress shifting into a lower gear..
In they book they also discuss consequences. Millions of consumers will benefit from the new set of products, that will be cheap or even free. Consumers will gain the most of what authors call “the prey”. On the other side, this new age will present amazing rewards to those who come up with these new products. Also those who finance and invest into these new technologies will be among the rewarded ones.
These people will take advantage of their comparative advantage and enjoy huge riches. Labor markets will be characterized as “winner takes all” market where those who take the market by storm will also reap most of the reward. Super rich individuals will be the result of the new distribution, while the revolutions we witnessed until now mostly benefitted the middle class.
At its peak, Eastman Kodak employed more than hundred thousand workers. New internet billionaires, such as Instagram founders, who became super rich after Facebook bought their company were each 10 times as rich as Eastman family. This new concentration of wealth will also be seen on the lower end where workers will be displaced by new machines. Government policies will have to ensure this doesn’t go out of hand.
Those who have new skills and good patter recognitions computers don’t will be able to fight the machines. In binary options we already see some of these changes. Super smart machines are slowly replacing individual traders. Our partner, the Binary Option Robot is one of those. So the future is really near and at Fair Binary Options we bring you the possibility to take advantage of the Second Machine Age.