The lesser depression has called forth a profusion of new and old theories about what’s wrong with the American economy, and what can be done to put it right. As you can see in Mike Konczal’s topological maps, these accounts can be broadly separated into “demand” and “supply” side arguments. Within the supply side, there is a subdivision between arguments based on government-induced uncertainty (due to taxation, regulation, policy, or deficits) and those centered around labor productivity. Of these I regard the uncertainty argument as opportunistic rhetorical hand-waving, with no real principled rationale; the argument about labor productivity, however, has some real substance behind it.

Curiously, however, the labor-productivity side contains proponents of two antithetical views: one group argues that jobs and income have stagnated because labor productivity is growing too slowly, while others argue that technology has been changing too fast for the labor market to keep up. Tyler Cowen’s The Great Stagnation, which I’ve discussed before, is an argument for the first proposition. A new book provides an argument for the second: Race Against The Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy. The e-book, by Erik Brynjolfsson and Andrew McAfee of MIT, is a cheap and quick read (I call it a book, but it’s really more like a very long article); it doesn’t provide much detail that will be new to people who follow the topic, but it’s a decent introduction to the effect of technology on the demand for labor. It’s accessibly written without being too dumbed down, although it engages in some of the Gladwellese that seems to pervade recent pop-social science, such as the use of cutesy overriding metaphors (grains of rice on a chessboard, in this case). But while its account of the current economic landscape is useful, its ideas about where we should go from here are exceedingly lame.

Some liberals will probably react unfavorably to the book’s whole thesis, because its emphasis on long-term technology and productivity issues threatens to distract attention from the more immediate problem, which is the tremendous shortfall in aggregate demand. The authors themselves are careful to say that they recognize the current demand problem, and that they do not believe that dealing with technological change should be a substitute for short-term measures to increase demand. Nevertheless, some commentators will no doubt be tempted to misuse the argument this way, as President Obama allegedly did when he used productivity-related claims to dismiss the need for additional stimulus.