One of the subjects that seems to have become a recurring theme on MNB recently is how income inequality in the US may haunt US retailers; the concern is that a widening gap between the haves and have-nots could create societal discontent that will make it harder to do business.
Along these lines, New York Times financial columnist Andrew Ross Sorkin reports on a provocative point made by Larry Fink, chairman/CEO of money management firm BlackRock, in a note to shareholders.
Sorkin writes:
“He covers a lot of ground, but to me, his most provocative point is about the economic disparity A.I. may generate.
“‘History suggests that transformative technologies create enormous value,’ he writes. ‘And much of that value accrues to the companies that build and deploy them, and to the investors who own them.’
“His point is measured and realistic compared with the promise by many in Silicon Valley of ‘an age of abundance’ for all. That said, the reason not enough people can invest in and profit from the market is because they typically don’t have enough money to do so.”
KC’s View:
I find this all extremely worrying, and am reminded of a line from the late crime novelist Andrew Vachss, who once wrote:
“I want to disabuse people of the idea that knowledge is power. Knowing how to get to Detroit is not the same thing as having the bus fare.”
I just think this is something that businesses have to think about, since their success often is tied to stability and prosperity. When stability breaks down, and prosperity becomes the province of just a few, success may be harder to achieve and sustain.
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