Book Review: "Power and Progress"

2026-01-11 · Source: Noahpinion · Field: Finance & Economics — Economic Analysis & Policy, Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation · Depth: Advanced, extended

Summary

Noah Smith's critical review dissects Daron Acemoglu and Simon Johnson's 2023 book, "Power and Progress," which advocates for "steering" technological innovation to prevent worker displacement. Smith contends the book's central thesis is flawed, citing numerous questionable historical examples, such as the Haber-Bosch process, the British Industrial Revolution, and the Panama Canal, which he argues are misrepresented to support the authors' narrative. He criticizes the book's broad, tautological definition of "power" and its inconsistent arguments regarding productivity's role in worker welfare. Smith also highlights the lack of specific citations for strong claims, like AI impoverishing billions, and challenges the practicality of the proposed "mandarin" approach to redirecting innovation. The review concludes by noting that recent economic trends, including rising real wages and stable inequality during AI's commercialization since 2012, contradict the book's pessimistic outlook.

Key takeaway

For policy makers or research scientists evaluating proposals for "steering" technological innovation, you should critically scrutinize claims about automation's economic impacts and the feasibility of pre-determining technology's direction. Recognize that historical examples can be selectively presented, and empirical evidence on automation's effects on jobs and wages remains contested. Prioritize simpler, ex-post labor market interventions like wage subsidies or strengthened labor institutions over complex, speculative attempts to predict and redirect future technological development.

Key insights

The book "Power and Progress" is critically reviewed for its unsupported claims about technology's negative impact and the feasibility of "steering" innovation.

Principles

• Technological impact depends on social choices, not just inherent tech nature.
• "Power" can be defined as the ability of an individual or group to achieve objectives.
• Automation's effect on wages is debated, with conflicting empirical evidence.

Method

The book "Power and Progress" proposes "steering" technological innovation towards human-complementing technologies and away from worker-replacing automation, through democratic people-power and institutional strengthening.

In practice

• Evaluate historical examples critically, verifying claims against data.
• Include specific footnotes/endnotes for empirical claims.
• Consider simpler policies like wage subsidies over complex "steering."

Topics

• Power and Progress
• Technological Innovation
• Automation Economics
• Labor Market Policy
• AI Impact
• Economic Inequality

Best for: Policy Maker, Consultant, Research Scientist

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Editorial summary, takeaway, and curation by AIssential. Original article published by Noahpinion.