It turns industries into winner-takes-all (or most) competitions, enabling top players employing relatively few workers to capture an outsized share of the returns. Firms will find it ever-easier to replace those asking for pay rises — by outsourcing or automating their jobs, for instance. Society needs work harder to ensure more people aren't marginalised leading to ensuing social unrest.
The digital revolution, like the industrial revolution before it, will unleash massive social upheaval, warns Ryan Avent in his new book, The Wealth of Humans. In it, he describes how automation and globalisation have already produced a glut of labour. This has depressed wages, raised inequality and fuelled fear of immigration, says Avent, pointing out that worse is to come unless we find ways of redistributing the fruits of this revolution.