The problem, if there ends up being one, is the speed of displacement. People worry that too much downward pressure on so called 'middle class' jobs will create

The problem, if there ends up being one, is the speed of displacement. People worry that too much downward pressure on so called 'middle class' jobs will create another 30 year stretch of zero wage growth for a big part of the population, which in turn puts a lot of political pressure on the system to 'do something'. Very hard to say if that will come true though, if automation dramatically speeds up, we would see a surge in productivity. Yet in recent years, we are seeing slower, rather than faster productivity growth relative to the long term trend. Take note that the doomsday jobs predictions implicitly forecast that we'll be making more stuff, using less effort, meaning society will be richer. From a tax policy perspective, a VAT addresses Gate's concerns pretty well.