Sunday, November 02, 2014

Some notes on Technology/Automation and its effect on Jobs

The following is from Economist:
“Yet some now fear that a new era of automation enabled by ever more powerful and capable computers could work out differently. They start from the observation that, across the rich world, all is far from well in the world of work. The essence of what they see as a work crisis is that in rich countries the wages of the typical worker, adjusted for cost of living, are stagnant. In America the real wage has hardly budged over the past four decades. Even in places like Britain and Germany, where employment is touching new highs, wages have been flat for a decade. Recent research suggests that this is because substituting capital for labour through automation is increasingly attractive; as a result owners of capital have captured ever more of the world’s income since the 1980s, while the share going to labour has fallen.
At the same time, even in relatively egalitarian places like Sweden, inequality among the employed has risen sharply, with the share going to the highest earners soaring. For those not in the elite, argues David Graeber, an anthropologist at the London School of Economics, much of modern labour consists of stultifying “bullshit jobs”—low- and mid-level screen-sitting that serves simply to occupy workers for whom the economy no longer has much use. Keeping them employed, Mr Graeber argues, is not an economic choice; it is something the ruling class does to keep control over the lives of others.”
And this is from MIT Technology Review Article:
Even some of the area’s biggest technology boosters are appalled. “You have people begging in the street on University Avenue [Palo Alto’s main street],” says Vivek Wadhwa, a fellow at Stanford University’s Rock Center for Corporate Governance and at Singularity University, an education corporation in Moffett Field with ties to the elites in Silicon Valley. “It’s like what you see in India,” adds Wadhwa, who was born in Delhi. “Silicon Valley is a look at the future we’re creating, and it’s really disturbing.” Many of those made rich by the recent technology boom, he adds, don’t seem to care about “the mess they’re creating.”

The anger in Northern California and elsewhere in the United States springs from an increasingly obvious reality: the rich are getting richer while many other people are struggling. It’s hard not to wonder whether Silicon Valley, rather than just exemplifying this growing inequality, is actually contributing to it, by producing digital technologies that eliminate the need for many middle-class jobs. Here, technology is arguably evolving faster than anywhere else in the world. Does the region really portend a future, as Wadhwa would have it, in which a few very rich people leave the rest of us hopelessly behind?
“My reading of the data is that technology is the main driver of the recent increases in inequality. It’s the biggest factor,” says Erik Brynjolfsson, a professor of management at MIT’s Sloan School.
Brynjolfsson lists several ways that technological changes can contribute to inequality: robots and automation, for example, are eliminating some routine jobs while requiring new skills in others. But the biggest factor, he says, is that the technology-driven economy greatly favors a small group of successful individuals by amplifying their talent and luck, and dramatically increasing their rewards.
For much of the population, incomes have stagnated or even shrunk, and technology is one of the leading culprits. Simply put, as we getter better at automating routine tasks, the people who benefit most are those with the expertise and creativity to use these advances. And that drives income inequality: demand for highly skilled workers rises, while workers with less education and expertise fall behind.
This is from Pew research report:
Some 1,896 experts responded to the following question:
The economic impact of robotic advances and AISelf-driving cars, intelligent digital agents that can act for you, and robots are advancing rapidly. Will networked, automated, artificial intelligence (AI) applications and robotic devices have displaced more jobs than they have created by 2025?
Half of these experts (48%) envision a future in which robots and digital agents have displaced significant numbers of both blue- and white-collar workers—with many expressing concern that this will lead to vast increases in income inequality, masses of people who are effectively unemployable, and breakdowns in the social order.
The other half of the experts who responded to this survey (52%) expect that technology will not displace more jobs than it creates by 2025. To be sure, this group anticipates that many jobs currently performed by humans will be substantially taken over by robots or digital agents by 2025. But they have faith that human ingenuity will create new jobs, industries, and ways to make a living, just as it has been doing since the dawn of the Industrial Revolution.
AI, Robotics, and the Future of Jobs -
And finally, workers are complaining about automation right now:

Stop ROBOT exploitation, cry striking Foxconn workers - HP downturn and automation eroding overtime on China's production lines -

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