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We present a theory of rising inequality due to the emergence of an occupational singularity caused by cognitive technological disruptions. The main innovation of our theory is that, following Vernon Vinge, we assume that cybernetic technologies have physical and cognitive characteristics. We illustrate the theory with a simple Solow-inspired growth model with economic sectors and labor skills that are segmented as legacy or cybernetics, and in which occupational meaning is optimized as humans allocate time between labor and nonlabor occupations. The combination of these model assumptions produce a phase transition, that is, an occupational singularity, which explains emergent socio-economic patterns of the last few decades such as: rising income and wealth inequality, increasing cyber-entrepreneurs power and share of income, decreasing labor share of income, declining number of hours at work, instability of the skill premium, the productivity paradox, and a theoretical validation of Piketty's fundamental inequality when applied to the cybernetics sector.
