However only focusing on the displacement of jobs involved in such tasks risks missing the positive welfare outcomes from the greater productivity associated with technological gains. Technological improvements can boost income for workers who can increase their productivity by using machines and technology. The long-run historical evidence appears to support this view.
Empirical evidence has shown that fiscal adjustment is critical to successful stabilization effort in countries facing domestic debt overhang. It should be noted, however, that deficit budgeting, per se, is not the critical issue of concern. Rather, it is the size, source of financing and quality of expenditure.