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Many started using AI-based tools to work better and faster" - yeah, that's called efficiency. And it's good for these people and companies. Only the increase in efficiency can increase real wages. However more is done with employing fewer people, meaning the economy needs to find a meaningful employment for them somewhere. And the more people feel like this transformation does not benefit them, the more populism and political turmoil.
There were the times when the aspiration of an average person was to become middle class and it was achievable. Nowadays in a lot of countries in the West people think they will never get there, and the only aspiration is to tax to death those who managed to achieve something.
It may look differently in emerging market economies, where the aspirations are still strong, and usually emerging market countries compete with cheap(er) and better motivated (hungry for success) labour, and keep taxes lower, because inflow of investments overcompensates lower taxation, and people put up with less social benefits, because their lives are improving anyway.
Without any moral judgement, it has always been inequality that motivated people. Give everybody the same and the motivation disappears. And that's why countries like Poland will outgrow countries like the UK.
Britain's economic trajectory will soon see it overtaken by Poland, Starmer to warn
Paradoxically, this was said by a leader of Labour party, which aim is to average everyone.