Engels pauses in an AI-shaped world

• Chirantan Chatterjee is a Professor of Economics at the University of Sussex and a Founding Fellow of the Royal Economic Society in the UK, also serving at various prestigious institutions globally.

• The concept of an “Engels’ pause” refers to stagnant living standards despite increasing productivity, drawing parallels to the economic shifts during the industrial revolution.

• Geoffrey Hinton warns that AI may create wealth for a few while impoverishing others, indicating a potential modern Engels’ pause where productivity rises but prosperity does not.

• Historical context shows that general-purpose technologies, like AI, can lead to economic dislocation while requiring complementary innovations and institutional changes for equitable benefits.

• Empirical signs of an Engels’ pause include rising productivity but stagnant wages, increasing costs of necessary complements for productivity, and growing global inequality, especially evident in the potential job losses due to AI.

• To mitigate these issues, effective public policies are essential, including skills transition programs, redistribution of AI-generated wealth through taxes or Universal Basic Income, and prioritizing AI infrastructure as a public good.

• While some argue the modern context provides stronger welfare systems and quicker technology adoption, caution is advised as historical lessons indicate that delayed progress often leads to denial of welfare gains.

• The challenge remains for policymakers to ensure that AI’s advancements lead to widespread human welfare improvements, rather than just productivity increases.

Engels and AI is important topic for Civil service exam (WBCS).

🚨Daily Current Affairs MCQ pdf download- Google Drive Link https://drive.google.com/drive/folders/1PN6A2mDkCngLsGR115zhZ_vTV8W7AKN8?usp=drive_link

✅Telegram channel link: https://t.me/TheSoumyaSir

✅Attempt the daily current affairs test in our free section of app (android and ios) : https://play.google.com/store/apps/details?id=co.iron.rrnvu

✅ Interview related telegram group https://t.me/IASWBCSInterview 🔥 Book free consultation with WBCS Gr A Officer: https://bit.ly/Free-Appointment-with-Soumya-Sir-Other-WBCS-A-Officer

✅ Courses https://www.wbcsmadeeasy.in/courses/

✅ Attempt previous years questions : Link: https://bit.ly/wbcs-pyq-wbcsmadeeasy

✅ Take subject wise Chapterwise mock test : https://bit.ly/wbcs-prelims-all-subjects-chapter-wise-test

✅ Bio – https://bit.ly/m/wbcs-made-easy

✅ App download – Android: https://play.google.com/store/apps/details?id=co.iron.rrnvu&pcampaignid=web_share (iOS available too)

WBCS MADE EASY www.wbcsmadeeasy.in

8274048710/8585843673

Jawahar IAS www.jawaharias.in 7439954855