Is The Advance Of Technology The Cause Of Income Inequality?

The concept of technology bias is being used by some economists to explain growing income inequality.  This argument leads us to blame the victims for growing income inequality.  The well educated have the skills that are in demand in the "labor market", and they are receiving most of the income.  Those with low incomes are being punished for their failure to invest in education.

There is some truth to that argument because we expect that better educated workers will receive higher pay.  The problem with that argument is that most of the growth in income has gone to the top ,01%.  A lot of highly skilled, and well educated workers, have been left behind in the process.  They earn a decent living but it does not compare with the income gains that have been extracted by others.  For example, CEO used to earn about 40 times the pay of the average worker in their firm.  Today they earn over 400 times the wages earned by the average worker.  Its hard to believe that this can be explained by a widening gap in technical skills.