Eric Schmidt solutions to inequality

In Schmidt's view, The Verge reports, the tensions in the Bay Area are a manifestation of a global trend in which technology is displacing human labor without proportionately raising standards of living for most of the population.

• "Ninety-nine percent of people have seen no economic improvement over the last decade," he said, adding that "the data suggest that the problem gets worse" and will become the "number one issue in democracies around the world."

• The solution to this displacement, according to Schmidt, is to foster conditions that encourage the creation of fast-growing startups that generate lots of jobs, or "gazelles." Those conditions include better education, looser immigration laws, and deregulation in strictly controlled areas like energy and telecommunications.

Venture Capital Post lists Schmidt's solutions:

1. He recommended that support be given to startups. "When you look at the solutions to the problems that you're describing, which ultimately lead to severe joblessness, they all involve creating fast-growth startups."

2. Provide "more education, more information, more connectivity." Together with President Barack Obama, Schmidt has been advocating for more education in the STEM fields or science, technology, engineering and math so that the growing yet unmet demand for tech jobs can be filled. Schmidt has forecasted that robots will ultimately replace work involving repetitive tasks that don't involve "creativity and caring," the report said.

3. Give government assistance. Since there is only a limited number of people who can do sophisticated STEM jobs, there must be a "safety net" for those who will not make the cut. This way, they will at least be able to have a place to live and have healthcare.

Here's how Slate's economics correspondent Jordan Weissmann wrapped it up:

There’s a lot to wade through here. “Let us celebrate capitalism” is a gold-medal-worthy feat of dismissive hand-waving. And the bit about gazelles isn’t ridiculous so much as facile: Gazelle is a term of art some economists and think tanks use to describe the fast-growing young companies that provide a disproportionate fraction of all new jobs each year. Some are the kinds of startups that we associate with Silicon Valley. Some are good old-fashioned industrial companies, or retail chains. He just wants to make it easier to start a new business. Great. Join the club.

The problem is that in the end, Schmidt’s solution to the hardships inherent in globalized capitalism is … more capitalism. He senses a problem and conveniently lands on a solution that doesn’t involve any personal sacrifice on his part, or the part of other well-educated, well-paid folks he might run into on the thought-leader circuit. Which is pretty much why nobody learns much at those events, anyway.