Robots in Our Future

| Sun Aug. 9, 2009 8:59 AM PDT

Gregory Clark says that although unskilled laborers have done relatively well for the past two centuries, that's about to change:

The economic problems of the future will not be about growth but about something more nettlesome: the ineluctable increase in the number of people with no marketable skills, and technology's role not as the antidote to social conflict, but as its instigator.

....[In] recent decades, when average U.S. incomes roughly doubled, there has been little gain in the real earnings of the unskilled. And, more darkly, computer advances suggest these redoubts of human skill will sooner or later fall to machines. We may have already reached the historical peak in the earning power of low-skilled workers, and may look back on the mid-20th century as the great era of the common man.

I recently carried out a complicated phone transaction with United Airlines but never once spoke to a human; my mechanical interlocutor seemed no less capable than the Indian call-center operatives it replaced. Outsourcing to India and China may be only a brief historical interlude before the great outsourcing yet to come — to machines. And as machines expand their domain, basic wages could easily fall so low that families cannot support themselves without public assistance.

With the march of technology, the size of a future American underclass dependent on public support for part of its livelihood is hard to predict: 10 million, 20 million, 100 million? We could imagine cities where entire neighborhoods are populated by people on state support.

Of course, this is roughly the argument people made in the 19th century too: if machines can spin cotton and mine coal and harvest crops, what's left for unskilled laborers to do?  The answer, of course, turned out to be: something else.  Productivity increased so dramatically during the Industrial Revolution, and with it the quantity of goods produced, that everyone stayed employed even though population increased and the labor content of most commodities went down.  The nature of the work changed, but 10% of a thousand, it turned out, kept as many people employed as 50% of two hundred.

So is Clark just engaged in neo-Ludditeism?  Maybe.  But there really does seem to a fundamental difference between machines that take the place of muscle power and machines that take the place of brain power — though it's hard to say for sure since we haven't really seen what computers can do yet.  Probably a lot more than most people think, though.  Clark's IVR transaction with United Airlines may seem trivial — an example of automated phone hell, in fact — but Thomas Newcomen's atmospheric engine seemed barely worth the trouble too at the time.

The only reason the Industrial Revolution didn't put millions of people out of work is that it created lots of new jobs that required just enough human judgment that they couldn't be done by machine.  But once computers can provide that judgment, then what's left?  According to Clark, high taxes on everyone else.  Don't anyone tell Newt Gingrich.

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Comments

we'll always have Star Trek

As has been pointed out elsewhere (comments thread http://yglesias.thinkprogress.org/archives/2009/08/the-tax-and-spend-fut...) robots will only replace workers when doing so increases productivity, which in turn lowers the price of goods. Also from the same thread: a nation where people work alongside robots will be more productive than a nation where only robots work.
Alternatively, we'll simply work less and spend the free time trying to "better ourselves and the rest of humanity". In many ways, we're already there: supplying everyone with food, clothing, housing and basic medical care is no longer a problem. It's a good thing people aren't happy with what would have been considered a normal lifestyle during the 60s anymore, but then again, we could do worse than returning to that level but instead of working hard for it, find a more useful and enriching use for our time.

Certainly that's the Star Trekian ideal

But in reality its hard to see it working out that way. In many ways we've already become a society where people work along side robots and productivity is vastly increased. But this hasn't led to more free time and less work for the average american. Instead its lead to less bargaining power, more hours, stagnant or lower real wages and all the additional wealth and leisure time migrating to those with existing wealth and power. You say "we're already there: supplying everyone with food, clothing, housing and basic medical care is no longer a problem". But I'm not sure what you base this on. Basic medical care is certainly not being supplied (we're debating that now), and we have millions living in poverty without enough food and substandard housing. And that's just in this country. Globally there are billions in poverty. So although we have the ability to provide a global minimun standard of living, and that ability will increase with more automation, its very likely the gains will be hijacked by the wealthy.

" And as machines expand

"
And as machines expand their domain, basic wages could easily fall so low that families cannot support themselves without public assistance.
"

It's not like this is a future problem. One of the fundamental problems of sub-Saharan Africa is that most of their population cannot produce enough of value to the economic world in a day to cover the cost of staying alive for a day.

The way Kevin frames the problem above is not quite helpful --- a better framing is, as I have put it --- can the value of what a person produces in a day cover what it costs to keep them alive?

Obviously there are a bunch of ways to deal with this.

Possibility one is (in the West) to let what it costs to keep them alive for a day drop precipitously, to Africa levels. There's a fair bit of way to go down that path if we wish to (certainly the GOP seems to feel that's a fine direction).

Of course, as with everything, it helps to know more about the world than economics. The fact that a hungry stupid man cannot do anything productive doesn't mean that he can't do plenty unproductive. At some point it makes more sense to buy people off than to pay the costs involved in dealing with their crime, their contagious diseases, their random sabotage of the economic system. But the same GOP people that want to immiserate the poor don't believe in applying Coase to this sort of situation (cf their attitude to more sensible health care), so Brazil it is, if they stay in power, followed by Nigeria, followed by what? The French Revolution?

Possibility two is to admit up front that economics is not the way we (society) wish to use to frame the question --- everyone has a right to a minimal standard of life, blah, blah. In other words, we take from the people who are producing more value than is needed to stay alive, and give to the poor. Who knows, maybe one day that will fly in the US.
BUT BUT BUT, and this is the point the left are unwilling to admit ---- what does this do about "the right to children"? If we have you as a useless drain on society, well, short of gassing you or letting you starve, there's not much we can do about that. But why do we, the rest of society, have to support your "right" to as many kids as you wish?
Right now this is a problem leftists everywhere in the world (except China) have been happy to avoid, to pretend does not exist. A variety of factors, from peak oil to climate change to overfishing mean those days are coming to an end.
And make no doubt about it --- no choice in this matter is a choice. At the most obvious level, for example, a choice to subsidize US kids is a choice to let African kids die --- resources are fungible, and more (oil, food, whatever) for America means less for Africa. We can (and will) go down that path for a while, but there's a limit to how much you can get out that. At which point...?

Africa's issues are not in any way similar

Sub Saharan Africa suffers from poor infrastructure and - with some real exceptions - endemic bad governance / corruption. Countries that have improved governance and invested in useful infrastructure (rather than prestige oriented white-elephants) have begun to do fairly well, e.g. Ghana.

The "value of what a person produces" argument supra is fairly incoherent, but seems rather like a confused version of the already illiterate Labour Value of the marxsists.

But people are reaching the limit of how many goods they want.

True, in the past, when a good was made cheaper and more available due to machine-based productivity gains, those displayed workers toiled to create other goods - which were consumed with glee.

So eventually, homes had air conditioning, garbage disposers, lots of furniture, cookware, etc.

However, there is a limit to how many goods (and services) that a person can consume. When that point is reached, then subsequent machine-based productivity gains means displaced workers won't have a "new" product or service to deliver to the consumer - because the consumer is satiated.

Has it really been 15

Has it really been 15 fucking years since Jeremy Rifkin wrote "The end of work"?

"The world, says Rifkin, is fast polarizing into two potentially irreconcilable forces: on one side, an information elite that controls and manages the high-tech global economy; and on the other, the growing numbers of permanently displaced workers, who have few prospects and little hope for meaningful employment in an increasingly automated world.

Rifkin suggests that we move beyond the delusion of retraining for nonexistent jobs. He urges us to begin to ponder the unthinkable-to prepare ourselves and our institutions for a world that is phasing out mass employment in the production and marketing of goods and services. Redefining the role of the individual in a near workerless society is likely to be the single most pressing issue in the decades to come.

Rifkin says we should look toward a new, post-market era. Fresh alternatives to formal work will need to be devised. New approaches to providing income and purchasing power will have to be implemented. Greater reliance will need to be placed on the emerging "third sector" to aid in the restoration of communities and the building of a sustainable culture.

The end of work could mean the demise of civilization as we have come to know it, or signal the beginning of a great social transformation and a rebirth of the human spirit. "

paranoia

We've been 'worrying' about machines taking over jobs for over a hundred years. When jobs get automated, the jobs that remain become more pleasant. I think anyone would agree driving a backhoe is a better job than moving the same amount of dirt with a shovel.

Also? reduced workweek. Six days workweeks were the norm until fairly recently - the only reason it wasn't a seven-day workweek was at the insistence of whatever religion was practiced in the region (one of the few actual benefits conferred by religion).

If machines are doing a lot of the work at little ongoing cost, simply keep employee pay the same for fewer hours. An increase in leisure time is a sign of advancing civilzation - when we get to a twenty hour workweek, I'll admit there's some advantage to living in a high-tech world.

to Quiddity

However, there is a limit to how many goods (and services) that a person can consume. When that point is reached, then subsequent machine-based productivity gains means displaced workers won't have a "new" product or service to deliver to the consumer - because the consumer is satiated.

"goods" in the future will be more thought-based and take up less room on shelves. We'll all be novelists, actors, musicians and artists some day.

EDIT - why doesn't this forum allow the italics tag?

Your illustration

is Robbie, from the movie "Forbidden Planet". He was fantastic. Give him a bottle of booze and ask for more and in no time you'll have cases. Ahh, the good old days.

I think one big problem is not found at the bottom of the ladder but at the top. What do we seem to value the most, in terms of how well they are paid? People who move money around - bankers, brokers, traders. And honestly (I know the Econ 101 definition of how these people allocate capital most effectively, etc.) I think largely that these people create nothing. Another movie, Wall Street, has Gordon Gekko saying, "I make nothing. I create nothing. I own!"

We have changed from a society that values creation to a society that values ownership. And the displacement of workers (it is most definitely not just the low-education end of the spectrum) I think follows. Conversely, if we value education, inquiry, and idea generation, then I think job creation will follow up and down the line.

Manna from hell.

Someone over at Political Animal posted a link to this. It's a fascinating SciFi tale of the near future, near your house. It's spot on this subject. Manna the computer manager.

http://marshallbrain.com/manna1.htm

This time it will be different

I liked MaynardHandley's post, especially the final paragraphs. The reason unemployment didn't skyrocket when some workers were displaced by machines during the industrial revolution, was the economic expansion Kevin mentioned.

Unfortunately, the economy cannot continue grow exponentially here or anywhere else (it hasn't in Sub-Saharan Africa, with the sad results), so the exponentially increasing population will not be accommodated by exponentially an growing labor market, as in the past. There are limits to growth, a la the Club of Rome.

Peak oil, peak uranium and the resulting power down don't bode well for energy intensive workers, human or mechanical.

Also, kudos to Greg in Fl on a good catch: Robby the Robot. I checked IMDB and he has his own filmography (16!). Forbidden Planet, noted as the source of the promo photo, was a great sci-fi flick.

Forbidden Planet was

Forbidden Planet was probably the best sci-fi movie since "Things to Come" and the best until "2001."

This is a subject that interest me and I want to say something interesting, but soemhow I can't keep my eyes of off Altaira.

100% unemployment on the planet Altair

Robby from "The Forbidden Planet" is very appropriate. In the movie an ancient race named the Krell created a huge machine which allowed them to create anything just by thinking about it, putting them all out of work. Unfortunately shortly after becoming unemployed, they were all wiped out by monsters created by their own ids.

Service

Oh, please. Just because there aren't enough jobs in manufacturing don't mean that there aren't enough unskilled jobs. Personal services have been expanding quite a bit over the last few decades. "Everybody" (i.e., the relatively comfortable yuppies who read Kevin) has a nanny for their kids. Even though their relatively comfortable parents didn't have a nanny for them.

It is an inevitable concomitant of income inequality--I think that Tibor Scitovsky was the first to notice this. (As is polygamy.)

The problem is not a surplus of unskilled workers. The #1 problem is the lack of pay and dignity in unskilled work. And don't say that this is inherent. The Japanese have done a pretty good job on this problem. A close #2 problem is that the new unskilled work is highly gendered (which is why it might be invisible to many.)

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