The transition to a world of artificial intelligence has given a whole new meaning to the concept that capitalism can only renew itself through creative destruction. This is the idea that clapped-out technologies have to be replaced by new ways of doing things, even though the process can be brutal.

That has been the way of things for every new wave of inventions since the dawn of the industrial age in the mid-18th century, but with machines now displaying cognitive skills, able to both think and learn, the potential for economic disruption is all the greater.

In an ideal world, policymakers would have time to adjust and so make the transition smoother and less painful. There are always teething troubles with new technology, which means businesses tend to change their working practices relatively slowly. That gives governments the space to invest in skills and craft industrial strategies. Only by doing so can the full potential of technological progress be realised.

It also helps if economies are growing and jobs are plentiful, as was the case in the 1950s and 1960s. Full employment then made it easier for workers displaced by automation to find another job. That, though, is not the world in which we currently live. Even before the US and Israel launched their attack on Iran, growth was weak and jobs hard to come by.

That said,........

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