In my examination of Norbert J. Michel’s Crushing Capitalism, which I referenced yesterday, I regrettably overlooked two noteworthy points worth emphasizing.
Firstly, Michel explores the relationship between technological advancements and employment, using the example of ATMs. He observes:
While ATMs automated several fundamental tasks previously handled by bank tellers and reduced operational costs for bank branches, this efficiency paradoxically enabled banks to expand their branch networks. Consequently, even though ATMs displaced some roles, the total number of bank tellers in the U.S. actually rose from approximately 500,000 in 1990 to nearly 600,000 by 2010, despite the installation of over 300,000 additional ATMs during that period.
Michel also aligns with the arguments made by Phil Gramm, Robert Ekelund, and John Early in their insightful work, The Myth of American Inequality: How Government Biases Policy Debate. They assert that the welfare system may inadvertently reduce the motivation for individuals to pursue higher incomes. He illustrates this point with a stark example from a Pennsylvania Department of Welfare study:
The analysis reveals a troubling reality: “A single mother stands to gain more by earning a gross income of $29,000, resulting in a net income and benefits totaling $57,327, than she would by earning $69,000 gross, which yields a net income and benefits of only $57,045.”
