That is true. There are more than one force at play. However, technology can underlie many sectors, causing deflationary forces within an entire industry.
It is similar to energy, how that drives many costs down or up.
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Absolutely, technology often exerts a broad influence, reshaping cost structures across sectors much like energy does, which can contribute to broader deflationary pressures without being the sole factor driving GDP trends
My view is that as the percentage of the economy which is software related, the faster the deflationary forces will show up.
AI is a massive component in this.
As software's share of the economy grows, we may indeed see more deflation as efficiency gains pile up, especially with AI's expanding role in reducing operational costs across sectors
Robotics is going to be a massive disruption. Job loss is extremely deflationary.
Robotics will likely accelerate deflationary trends, but history shows tech also creates new job roles. It’s a dynamic shift as both labor markets and industries adapt to evolving tech landscapes
I disagree that history shows technology creates new jobs, at least from a net standpoint.
The labor force participation rate in the US and globally, peaked in 1998 and 1990 respectively.
Technology's impact on jobs is complex. While some roles may vanish, others emerge, but it's true that overall replacement isn't guaranteed—factors like policy, education, and market dynamics ultimately shape the net effect