L2 Founder Scott Galloway tackles the innovation myth in this new video. Contrary to popular belief, innovation does not lift all boats. Technological innovation is creating a few yachts while leaving tens of millions of middle class people in the Western world drowning. Facebook is a prominent example with a $160 billion market cap and just over 7,000 employees. While great for Facebook employees and luxury retailers in Palo Alto, that ration can have harmful effects for society.
Galloway emphasizes that U.S. wages have never been lower as a percentage of GDP, in a large part due to the outsourcing of middle class jobs. For example, sales skills are becoming less essential as more people research online before making a purchase and even research in-store with mobile devices. Furthermore, new jobs are not being created at the speed of which they are being destroyed by technology; the percentage of working people in the U.S. is lower than it has ever been since women entered the workforce. Meanwhile, corporate profits are at record highs. Galloway believes all of this is turning the U.S. into a nation of three or four lords and 350 million serfs.