Productivity growth and the entailed inequality problems. Introduction of the issue of «cost disease»

Abstract

The paper tackles the problem of social inequalities arising from the phenomenon of productivity boost. The issues of disinvestment, Baumol’s «cost disease» and Rifkin’s viewpoint on employment shrinking are presented. The work sheds light on the strategic role of public policy in the respect of alterations incurred by productivity improvements and the postulate to release the labor from taxes.