As is the case with so many commercial real estate investors, family offices are carefully monitoring the direction of interest rates and other economic trends.
How will the rise of automation and AI affect the workforce and economy moving forward?
Our President met with the trucker’s association last week and discussed preserving their jobs. Quite frankly if you want to preserve the jobs of truckers you should block self driving cars, you should stop research and development. That’s been the trend, smart computers that have recently replaced repetitive, cognitive tasks that have been done in the past, this is not something new with computers. This has ben going on since the beginning of the Industrial Revolution but has really been picking up steam in a big way.
This is the biggest long term economic and social threat. People need to do something useful, they need to feel they are contributing socially. If you are living in a technological world and you have the people who create the machines doing well but not many others, then it’s going to be a pretty volatile world.
One policy solution that is ridiculous is universal basic income. You can see why people get into this but it misunderstands human psychology. People want a job for a number of reasons, to feed their families, pay the mortgage, and so on, but it’s also a source of dignity, that someone is willing to pay you because they think you’re doing something is socially useful. This is why people get up in the morning. So I think a world in which you are paid to do nothing is not going to lead to creativity. I think it will lead to a lot of unhappy and angry people who will take that anger into the political sphere which you are starting to see a bit already in the populist revolts that are happening.