Automation and the Crisis of Work

Technology, like natural selection, has no goal.

When it comes to the impact of automation (robots, AI, etc.) on jobs, there are two schools of thought: one holds that technology has always created more and better jobs than it destroys, and this will continue to be the case. The other holds that the current wave of automation will destroy far more jobs than it creates, but the solution is to tax the robots and use these revenues to distribute the wealth to everyone who no longer has a livelihood.

In either case, we’ll get richer: if technology generates more high-quality jobs, replacing lower-quality jobs lost to automation, we’ll collectively get richer, and if technology destroys jobs but creates immense profits that can be distributed to everyone as Universal Basic Income (UBI), then we’ll get richer via distributing profits to everyone.

But what if neither option is realistic? What if the jobs that are created in the wake of automation are lower-quality, lower pay and far more insecure? And what if automation leads to much lower profits rather than much higher profits? What if there’s nowhere near enough profits to distribute to everyone as Universal Basic Income? If that’s the case, we’re collectively becoming poorer, even if a small percentage of the population is reaping wealth from automation. Pathfinding our Destin... Smith, Charles Hugh Buy New $6.95 (as of 11:36 UTC - Details)

Consider this first-hand account from a reader on Facebook (used with permission):

“With almost 40 years in the pipeline business I have seen detecting and locating leaks in pipelines go from 6-8 men, 2-3 trucks, maybe an airplane and take days. With three pieces of equipment (Laser methane detector and a Optical Gas Imaging camera), $300 drone and a 4 X 4 pickup, one person can cover in a few hours what could take days to weeks to find years ago.

The work I do has displaced at least 6 if not more workers plus the capital cost of the equipment. The total cost of all my equipment is less than $200K and labor cost of less than $2K.

A ‘Smart Pig’ can detect, measure and locate a corrosion indication within mm’s. The fixed cost of the equipment is high but the incremental cost per use is low. Manpower and equipment has gone from 12 workers to 4-5 depending on size. The information found can prevent loss resulting in environmental damage and economic loss to the pipeline owner.

Less people doing more work to find problems. Using technology instead of manpower.”

Between half and two-thirds of this workforce has been obsoleted by these technologies. If there is any competition in the manufacture of the equipment, it’s likely prices will fall as components become commoditized and decline in price.

Sectors of the economy many hope will create more jobs are seeing the same dynamics. A friend recently described the technologies being deployed to increase the yields and reduce labor in organic sustainable farming: drones that monitor the water and nutrient needs of crops with sensors and relay the data to drip-irrigation systems.

As for training students to code/program: many of these tasks are being automated as well.

Even as we wring our hands over the potential for individually-targeted advertising to sway elections, we also have to ask: why should any advertiser pay marketing firms to distribute bulk emails and mailers, buy TV/radio/print adverts, etc. when an essentially automated technology can craft a data-driven micro-targeted pitch to individuals?

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