Profit and Prejudice: The Luddites of the Fourth Industrial Revolution

by Paul Donovan

Avoiding prejudice will be critical to economic success in the fourth industrial revolution. It is not the new and innovative technology that will matter in the next decade, but what we do with it. Using technology properly, with diverse decision making, is the difference between success and failure in a changing world. This will require putting the right person in the right job at the right time. Prejudice stops that happening.

Profit and Prejudice takes us through the relationship between economic success and prejudice in labour markets. It starts with the major changes that occur in periods of economic upheaval. These changes tend to be unpopular and complex - and complexity encourages people to turn to the simplistic arguments of 'scapegoat economics' and prejudice. Some of the changes of the fourth industrial revolution will help fight prejudice, but some will make it far worse. The more prejudice there is, the harder it will be for companies and countries to profit from the changes ahead. Profit is not the main argument against prejudice, but can certainly help fight it.

This book tells a story of the damage that prejudice can do. Using economics without jargon, students, investors and the public will be able to follow the narrative and see how prejudice can be opposed. Prejudice is bad for business and the economy. Profit and Prejudice explains why.

304 pages, Kindle Edition

Published November 6, 2020

About the author

I am the Chief Economist of UBS Global Wealth Management. I believe passionately that economics is something everyone can and should understand. We all make economic decisions all of the time. The problem is that economists tend to wrap economics in jargon and equations. We do not need to do that. It is my job to help people realise what they probably already know – by developing and explaining the UBS economic view in a clear way. To do this, I publish research and appear in various print and broadcast media.

I tend to think of myself as a political economist, not a mathematical economist. I get very excited about lots of things in economics. Diversity, inflation, education, trade, inequality, and social change are some of the topics I am very enthusiastic about.

I joined UBS back in 1992 as an intern economist working in our investment bank. Decades later, I am still working as an economist at UBS. That probably says something about me, being an economist, working for UBS, or all three. As Chief Economist I sit on the Global Investment Committee. I am a UBS Opinion Leader and a UBS Pride member. I sit on the UBS Art Board. I am also part of the UBS Nobel Perspectives program, and a supporter of the UBS Women in Economics program.

I have an MA in Philosophy, Politics and Economics from Oxford University and an MSc in Financial Economics from the University of London. I am also an Honorary Fellow of St Anne’s College, Oxford and sit on their investment committee and development board.

I publish books in a personal capacity, with the support of UBS.

Reviews

[Philippagl · Rating 5 out of 5]

For anyone, specialist or not, with an interest in world events and economics, this is an accessible and informative read. As always, Paul knows just how to engage with a wide audience and put economics in context. With all the changes and challenges brought about by the events of 2020, this would appear to be precisely the right time to be having these discussions regarding prejudice and how companies and countries can strive to work in a non-prejudiced way.