It’s not their fault. They have lacked the data to prove or disprove their theories. So they repeat those theories, year after year, decade after decade, and are surprised when economies don’t fit the theories.
Most of these are industrial age theories. Marx wrote in the 19th century. The Austrian economists wrote in the early 20th century. Their theories are products of their time, the idea that machines generated additional productivity slowly, and that operators would always be required for those machines.
Moore’s Law destroyed all these theories.
There was some recognition of this early-on. In 1971, when early technology pioneers like David Packard were in the Nixon Administration as part of his “California Mafia,” the tie between metals and money was broken. This was called the “Nixon Shock.” It was made absolutely necessary by Moore’s Law. Without it, the deflationary effects of technology improvement would have wrecked the economy. Imagine what gold would cost today if the whole economy had to be floated on it.
But the impacts of Moore’s Law aren’t just cumulative. They are, in many ways, exponential. The impact of clouds-and-devices on productivity are exponential. Imagine. You not only have a supercomputer in every person’s hand, one capable of automating not just office work but entire marketplaces, and these are connected, without wires, to more compute power than we could have dreamed of creating just a decade ago.