Policy Implications of Capital-Biased Technology: Opening Remarks

The bigger problem is that our education system is failing us and not training a workforce that has value in today's society. We are clearly undergoing a structural change in society that is increasingly valuing those who create "robots," or automated solutions. When it comes to middle wage earners, we need to do a better job creating value from our education system.

I wrote a little more here on why being like a robot is better for startups: http://kylethered.tumblr.com/post/39054135068/implications-o...

and here on how bad our education system is from an economic perspective: http://kylethered.tumblr.com/post/37790176790/data-says-high...

TL;DR: Krugman says that the shortfall in funding of US entitlements is that a growing percentage of income is coming from capital gains rather than payroll and that only payroll contributes to these entitlements.