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The US economic recovery is entering its 10th year, yet the historical laws of economics don’t appear to be applying. After such an extended cycle, unemployment in the US is now below 4% and companies are reporting record numbers of job vacancies. Normally you would expect this supply contraction to result in higher wages as employers fight for staff. But this has not happened. The last monthly job numbers from the US confirmed the positive employment momentum but wage growth remained stubbornly low at just 2.7%. Many explanations have been given for the break in the traditional link between employment levels and wage growth. The most compelling explanation, I believe, is that we are witnessing the structural deflationary implications of technology and its powerful disruptive influence across multiple sectors of the economy. Technology has dramatically changed the competitive dynamic in many segments of the economy as new platforms, new routes to markets and new ways to service cust...

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