NYU Professor: The Digital Age Is Destroying The US Middle Class And There's Little Hope For Reversing The Cycle

NYU business school professor and consultant Scott Galloway believes US society is telling itself a lie: That technology is good for everyone.

He believes that the “digital age” has clear winners and clear losers.

The winners are the global middle class, the abject poor, and the über-rich.

Galloway says one of the biggest losers is the American middle class.

Galloway says that the Digital Age is actually good for the very poor. Poverty rates are declining worldwide.

Another winner is the global 'consuming class,' which is growing very quickly.

But, he says, the main reason the global middle class is only growing because of developing countries.

In the US, the high-wage jobs are going away and low-wage jobs are growing in their place.

Now the US lead in middle class income is going away.

The problem is that, instead of employee a hundred thousand middle class workers, successful digital companies, create a few thousand millionaires.

Another problem is that education, which could propel people from poverty and into the middle class, is getting much more expensive.

Meanwhile, another winner of the digital age are the very richest Americans. Galloway says they are Benefitting from a tax policy where capital gains is taxed less than regular, middle class income.

As a result, an larger share of income and wealth goes to the top 10% in the US than in other developed countries.

Galloway says inequality has real consequences. It increases the infant mortality rate…

…and it lowers the life expectancy of the average American.

He argues that it stresses children out.

Galloway says it will be hard for the US to break out of this cycle. He believes that the wealthy are influencing elections.

He thinks the rich will use their influence to protect tax policy and other laws that benefit them. This will create an 'upward and downward' spiral that won't stop soon.

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.