Gerstner predicts global wealth will increase but distribution will become more concentrated due to technology.
“Global wealth, as measured by the mountain of labor and capital that exists in the world, the conveniences that will be available to people will be better than they've ever been before, but the distribution of those will be way more concentrated as we've already seen.”
Gerstner warns AI and ML will increase productivity but concentrate wealth distribution even more than today.
“Global wealth, as measured by the mountain of labor and capital that exists in the world, the conveniences that will be available to people will be better than they've ever been before, but the distribution of those will be way more concentrated”
Gerstner argues backlash against capitalism stems from technology revolution displacing human labor, not capitalism itself.
“I would argue that's not really a feature of capitalism so much as it's a feature of a technology revolution.”
Gerstner says global GDP now doubles every 20 years versus every 100 years in the 1800s but prosperity is unequal.
“The period of time between 1800 and 1900, it was doubling every 100 years. Global GDP is now doubling every 20 years. But the prosperity is not distributed equally, right?”
Gerstner argues going from zero to something is a bigger move than going from one to five.
“But going from nothing to something. Yes. Going from zero and the prospect of zero your whole life to one, that is a far bigger move than going from one to five.”
Gerstner says 50 million of 65 million kids under 18 would never own a compounding account without this program.
“Under the age of 18, that's 65,000,000 kids. And of those 65,000,000, 50,000,000 would never own an account that compounds.”