The key to creating new jobs: empowering innovations
My view is that prolonged growth of inequality in developed economies is likely to be detrimental for human well-being (here are some references: 1 , 2 , 3 , 4 ). People on the political right often defend this inequality by claiming that the super rich must be allowed to stay super rich because they are the motors behind job growth. In this video , Clayton Christensen explains that how investments are made determines how economies develop. Essentially, investments can be targeted at three types of innovations: 1) empowering innovations which transform products from complex and unaffordable for the mass to simple and affordable, thereby expanding markets and creating jobs, 2) sustaining innovations , which make good products better, and which do not create many new products because they do not make markets larger, 3) efficiency innovations , which is making the same products at lower prices and which destroy jobs and free capital.