Every general-purpose technology reorganizes labor markets rather than destroying them

The tractor should have broken the labor market forever. In the early 20th century, roughly a third of U.S. employment was in farming. By 2017, it was about 2 percent. Farm output almost tripled, supporting a massive population increase — and those workers flowed into previously unimagined industries: factories, stores, offices, hospitals, labs, services, software.

Electrification told the same story. From 5% of factories using electric power at the turn of the century to nearly 80% of manufacturing power by 1930, and labor productivity growth doubled for decades. More productivity meant more manufacturing, more salespeople, more lending, more commercial activity.

VisiCalc and Excel didn't doom the bookkeepers. Vastly more efficient computation led to an explosion of bookkeepers, then created an entire FP&A industry. The pattern is consistent: general-purpose technologies don't kill labor demand — they reorganize the economy, expand the frontier of useful work, and make the pie larger.

Source claim: Every major general-purpose technology — mechanization, electrification, computation — has reorganized labor markets and expanded total employment rather than producing permanent unemployment.