Power and Progress

Noted economists Acemoglo and Johnson’s book is fundamentally about how technological advancement has not been for the betterment of humanity. They argue that the effect of technological innovation on human well-being largely depends on societal choices about its implementation. Power structures shape these choices, and in recent decades, the influence of tech company founders and venture capitalists has pushed them in a harmful direction. However, society can foster technologies that more equitably distribute benefits by focusing on innovations that enhance rather than replace human labour. The book is written in three parts: Historical Patterns of Technology and Power, The Present and the AI Challenge and Rethinking Progress – A More Equitable Future.

The book identifies a recurring historical cycle, evident in both the British Industrial Revolution and the late 19th-century United States. This pattern follows an inverted Ucurve: technological innovation initially drives rising inequality, and sparks countervailing power, ultimately leading to redistribution and social progress. The authors contend that the past four decades have left society trapped in the middle of this cycle—potentially at its lowest point—on the cusp of change, but only if collective action is mobilised.

The authors underscore the profound influence of ideas and narratives in shaping public opinion and policymaking, highlighting how a “vision oligarchy” controls these narratives to maintain its dominance. This concentration of ideological power stifles discussions of more progressive alternatives, effectively constraining political imagination. As they succinctly observe, “Modern society runs on persuasion power.”

They argue that technological change, even when presented as a force for progress and the common good, often exacerbates existing inequalities by further disempowering marginalised groups. Challenging this pattern requires not only alternative narratives but also strong political resistance. Given that one of the authors is a former IMF chief economist, their emphasis on trade unions as a crucial force in this struggle is particularly notable.

05-Feb-25 Their most pointed critique is directed at AI, which they argue, under current governance structures, is set to intensify automation, surveillance, and inequality. They label AI “the mother of inappropriate technologies,” likening it to a “tech vampire squid” that exacerbates societal harms unless restrained and repurposed for the public good. Crucially, they stress that these dangers are not inherent to AI itself but are a consequence of its development being shaped by Big Tech’s relentless pursuit of profit. However, the evidence presented in very convincing.

In the final part, the authors explore historical examples where societies have successfully steered technological progress toward broader benefits, such as governmentfunded research, pro-worker innovation, and ethical regulations on technology use. One of the most striking arguments in the book is the renewed call for organised labour. The authors emphasise the role of trade unions and grassroots political movements in shaping technology policies that benefit workers rather than just corporate interests.

The book concludes with policy recommendations, including stronger antitrust enforcement, corporate accountability measures, and public investment in workersupportive technologies. The authors argue that societies must actively shape technological development rather than passively accepting the status quo.

However, the idea that technology’s impact on society is shaped by its inherent properties and how it is used is so self-evident that it is almost a truism. The same industrial technologies that have fuelled economic growth and improved living standards have also been harnessed for war. Artificial intelligence, which has revolutionised fields like healthcare and logistics, is also used for mass surveillance, deepfake disinformation, and autonomous weapons. In response to these dual-use dilemmas, societies have established an extensive system of laws, international agreements, and ethical norms aimed—at least in theory—at ensuring that technological advancements contribute to human well-being rather than harm. The authors don’t delve deep into such protective mechanisms.

The book is about power; however, the definition they employ, “Power is about the ability of an individual or group to achieve explicit or implicit objectives. If two people want the same loaf of bread, power determines who will get it”, maybe semantically accurate, but it's empirically unhelpful; defining "power" as "whatever caused an outcome" doesn't clarify causality—it merely rebrands it. The historical examples also don’t appear to be very convincing, such as the technology for fertilisers eventually being used for chemical weapons and linking the building of the Panama Canal and the misery for the workers with its failed design. The lack of footnotes or endnotes is another issue with the book's examples. Instead of referencing specific sources for each claim, as is typical in most books, Power and Progress features a bibliographic essay at the end. Although it lists many sources, connecting them to the individual points made throughout the book can be difficult and sometimes impossible. In closing, the policy recommendations also don’t appear very sure-footed. Overall, it is a thought-provoking and engaging book, but its limitations drag its central thesis downwards.

05-Feb-25