Technology and the Great Recession

Kathleen Madigan (see here) has a piece at the Wall Street Journal about the increasing use of "machines" and the continuing slowdown in hiring.  The pieced contains the following graph (click to enlarge).

In the Operations Management course that I teach we look at the role of technology (and its evolution).  There is a school of thought that argues that increased replacement of labor by technology accounts for much of the "hollowing out" of jobs.  That is, they argue that reducing the need for "skilled" labor is one of the legacies and continuing pursuits of "scientific management."  Technology, of course, has also made possible many improvements in work and productivity.  But there is another side that gets too little consideration and one doesn't have to be a Luddite to find it troubling.

The piece also contains the following statement:

Businesses’ preference for equipment — while understandable from a cost perspective — is also a big reason why policymakers are stymied to find ways to ignite job creation.