Every
new report shows the machine replacement of human labor is
accelerating, with job creation by new technology no longer keeping up
with job loss. Last month it was a sophisticated study from the
National Bureau of Economic Research
showing that industrial robots alone displace human workers at a
stunning rate and have an even more depressive effect on wages. Last
year a
World Bank study found that 57% of jobs in
Organization for Economic Co-operation and Development
nations were vulnerable to replacement within the next 20 years. Many
experts think this is a more serious problem than the export of jobs
abroad.
How big is the problem? Consider just one example. In the United States,
3.5 million truck drivers could
lose their jobs over the next decade as self-driving trucks hit the highways.
It
would be a mistake to think the problem affects mainly manufacturing or
low-skill jobs such as truck driving, although that is the sector of
the economy where the impact of robotics and artificial intelligence on
jobs is most visible. Just as mistaken is the idea that retraining
displaced workers with high-tech skills is the solution to the problem,
because the high-tech jobs are disappearing. Especially with advances in
artificial intelligence, the bots are doing more of the intellectual
labor once done by highly trained professionals.
Lawyers are losing out to bots
that write routine contracts, wills and deeds. Architects and engineers
no longer do the drafting work now done by computer-aided design
software. Business writers are being displaced by AI that abstracts and
summarizes corporate reports. And medical diagnosis is now in the
hands of IBM's Watson.
You
might think that humans still have to program the robots and code the
AI. So you might add your voice to the chorus calling for every child to
be taught how to code. But that won't guarantee your child a job,
because more and more of the coding is now also done by the computers
themselves.
Why is this happening?
Partly it's economics. Robots are expensive, but they quickly pay for
themselves. They work 24/7 without complaint, they don't need health
insurance and they don't join unions. The real game changer, however, is
the development of robots and AI that learn on the job.
With
machine learning, we don't have to program beforehand every movement
and every decision that the bots have to make. Just as a human can learn
medical diagnostics, plumbing or policing, so, too, can the robots
learn, except that the robots learn 100 times faster, they're never late
for a lesson and they don't need weekends off.
What
are the consequences? First, there is the economic challenge. Paid
labor is the main way in which modern economies distribute wealth. We
are already seeing the first signs of new social and economic stress.
The top 1% grow ever wealthier, while wages and income for the other 99%
stagnate or decline. That's partly due to greed, but it's more a
consequence of the fact that, as machines replace human labor, ever
fewer people draw paychecks.
Second
is the psychological challenge. We tend to define ourselves by the work
we do. If someone says to you, "Tell me about yourself," the first
response you're likely to give is to describe your work: "I'm a teacher"
or "an engineer" or "a nurse." But what if you have no work? Who are
you then?
What
is to be done? There is a possible solution to the economic challenge:
universal basic income. Our economy still generates enormous wealth. The
question is how to get that wealth to the people who need it.
The
answer might be to provide every American with an income sufficient to
buy the basics -- food, clothing, shelter and modest pleasures such as
recreation and a bit of travel. There are details to work out, such as
how high to set the basic income level so as to cover everyone's needs
without turning everyone into a lazy bum. But the concept is
straightforward, and its implementation could be surprisingly easy,
perhaps building upon the Social Security system. Moreover the cost is
reasonable. Divide current total US personal income,
around $13 trillion, by current population, around 320 million, and we get a universal basic income around $40,000 per person. Not bad.
The
harder problem is the psychological one and the attendant social and
cultural problems. What happens to human nature in a world without work?
Will we all become sloths? Or, freed from the need to work, might we
find within ourselves a hidden Michelangelo, an unknown Patsy Cline or
an undiscovered Maya Angelou? We might find out sooner than we think.
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