Podcast
Questions and Answers
Which of the following best describes the central argument presented regarding automation and its effect on the workforce?
Which of the following best describes the central argument presented regarding automation and its effect on the workforce?
- Technological advancements in automation will inevitably result in a post-work society, freeing individuals from traditional labor.
- Automation leads to increased job opportunities and economic prosperity for all workers.
- The discourse around automation, while highlighting potential utopian possibilities, often overestimates the immediacy of these changes and overlooks underlying economic issues. (correct)
- Automation primarily affects high-skilled jobs, rendering them obsolete and creating a need for extensive retraining programs.
What is the main critique of the automation discourse concerning the cause of low labor demand?
What is the main critique of the automation discourse concerning the cause of low labor demand?
- It effectively addresses the social and economic challenges posed by automation.
- It accurately reflects the impact of technological advancements across all sectors.
- It correctly identifies the need for increased educational opportunities to adapt to new technologies.
- It erroneously attributes low labor demand primarily to technological dynamism, overshadowing the role of overcrowded markets and economic slowdown. (correct)
What is a key difference between 'labor-substituting' and 'labor-augmenting' technologies?
What is a key difference between 'labor-substituting' and 'labor-augmenting' technologies?
- Labor-substituting technologies replace human workers entirely, while labor-augmenting technologies increase the productivity of existing workers. (correct)
- Labor-substituting technologies are exclusive to the manufacturing sector, whereas labor-augmenting technologies are found in service industries.
- Labor-substituting technologies are more costly to implement than labor-augmenting technologies.
- Labor-substituting technologies enhance human productivity, while labor-augmenting technologies replace human workers entirely.
Which factor does the text identify as a significant contributor to the global wave of deindustrialization?
Which factor does the text identify as a significant contributor to the global wave of deindustrialization?
The article references the concept of 'fully automated luxury communism'. What role does UBI (Universal Basic Income) play in achieving this?
The article references the concept of 'fully automated luxury communism'. What role does UBI (Universal Basic Income) play in achieving this?
What is the paradox Robert Solow highlights regarding computers and productivity?
What is the paradox Robert Solow highlights regarding computers and productivity?
Which of the following describes the trend in global manufacturing output growth since the 1950s and 60s?
Which of the following describes the trend in global manufacturing output growth since the 1950s and 60s?
How did US firms respond to increasing price competition in the global market?
How did US firms respond to increasing price competition in the global market?
What does the author suggest about the long-term prospects for countries like China, given rising wage levels?
What does the author suggest about the long-term prospects for countries like China, given rising wage levels?
What is the central claim regarding productivity growth and output growth?
What is the central claim regarding productivity growth and output growth?
According to the article, what distinguishes the current period from the Belle Époque in terms of labor markets?
According to the article, what distinguishes the current period from the Belle Époque in terms of labor markets?
What is the consequence of limited technological dynamism and worsening economic stagnation?
What is the consequence of limited technological dynamism and worsening economic stagnation?
Which of the following is NOT mentioned as a capability of machines in the context of automation?
Which of the following is NOT mentioned as a capability of machines in the context of automation?
Bill Gates and Elon Musk, mentioned in the text, both advocate for or consider the need for:
Bill Gates and Elon Musk, mentioned in the text, both advocate for or consider the need for:
What factor primarily explains why deindustrialization has also been accompanied by efforts to develop new labor-saving technologies?
What factor primarily explains why deindustrialization has also been accompanied by efforts to develop new labor-saving technologies?
What has been the general trend regarding the labor share of income over the past decades?
What has been the general trend regarding the labor share of income over the past decades?
In the context of manufacturing, what does the expression 'long downturn' refer to?
In the context of manufacturing, what does the expression 'long downturn' refer to?
Which historical figure's works presaged the imminent emergence of largely or fully automated factories?
Which historical figure's works presaged the imminent emergence of largely or fully automated factories?
In what area have Germany and Japan outpaced the US?
In what area have Germany and Japan outpaced the US?
What factor contributes to the persistence of the automation discourse?
What factor contributes to the persistence of the automation discourse?
How did the US try to support European economies and ensure loyalty during the Cold War era?
How did the US try to support European economies and ensure loyalty during the Cold War era?
What is manufacturing overcapacity?
What is manufacturing overcapacity?
What happened to Eatsa, the automated fast-food company?
What happened to Eatsa, the automated fast-food company?
Which countries had the best industrialization until the middle of the 1900s?
Which countries had the best industrialization until the middle of the 1900s?
Was there a significant shift in demand to services vs industry?
Was there a significant shift in demand to services vs industry?
Was world-trade hurt by the 2008 economic crash?
Was world-trade hurt by the 2008 economic crash?
What sort of actions do firms do when faced with slowing growth and more world competition?
What sort of actions do firms do when faced with slowing growth and more world competition?
During the 1960s where did Silicon Valley move production to?
During the 1960s where did Silicon Valley move production to?
What do the terms 'Detroit', 'Ciudad Juarez' and 'Guandong' have in common?
What do the terms 'Detroit', 'Ciudad Juarez' and 'Guandong' have in common?
What does falling rates of manufactured export growth ignited?
What does falling rates of manufactured export growth ignited?
According to the context, what does a country require to 'industrialize'?
According to the context, what does a country require to 'industrialize'?
Was industrialization ever considered unique?
Was industrialization ever considered unique?
Which of the following does NOT describe the pre-WWI era?
Which of the following does NOT describe the pre-WWI era?
Where is the full concluding section of the text located, according to the article?
Where is the full concluding section of the text located, according to the article?
What are the four main positions that 'automation discourse rests on?'
What are the four main positions that 'automation discourse rests on?'
What did Andrew Ure's The Philosophy of Manufactures (1835) do?
What did Andrew Ure's The Philosophy of Manufactures (1835) do?
Flashcards
Lights-out Production
Lights-out Production
Fully automated work processes requiring no human intervention, capable of running in the dark.
Automation and Liberation
Automation and Liberation
The idea that automation will free humans from labor, leading to collective liberation.
Universal Basic Income (UBI)
Universal Basic Income (UBI)
A guaranteed income provided to all citizens regardless of employment status.
Technological Unemployment
Technological Unemployment
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Techno-Optimism
Techno-Optimism
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No Economic Law
No Economic Law
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Automated Feudalism
Automated Feudalism
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Automation Technologies
Automation Technologies
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Labor-Augmenting Technologies
Labor-Augmenting Technologies
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Job Classification Elimination
Job Classification Elimination
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Deindustrialization
Deindustrialization
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Output-led Deindustrialization
Output-led Deindustrialization
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Anxiety about Labor Market
Anxiety about Labor Market
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Labor Demand Driver
Labor Demand Driver
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Global Redundancy
Global Redundancy
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Heightened Competition
Heightened Competition
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Market Invasion
Market Invasion
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Globalisation of Production
Globalisation of Production
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Labour Deinudstrialization
Labour Deinudstrialization
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Study Notes
- Automation is a hot topic due to advances in artificial intelligence, machine learning, and robotics that promise to transform work.
- Companies like Tesla are working towards fully automated "lights-out" production.
- Machines can now play ping-pong, cook, have sex, converse, develop strategies for playing Go and write symphonies.
- Computers are learning to identify cancers, develop legal strategies, and driverless trucks and robotic dogs are becoming common.
- It remains doubtful that "the hype" will come to fruition, machines are still incapable of simple tasks like opening doors and folding laundry.
- Computerized assistants and self-driving cars still require human intervention.
- There are billboards in San Fransisco threatening to replace fast-food workers with tech if the minimum wage is raised.
- Wall Street Journal dubbed the minimum wage the "robot employment act".
The Automation Discourse
- Scare stories about automation have coalesced into a social theory.
- This theory analyzes current technologies and predict the future and its consequences on society.
- The four main propositions of the automation discourse:
- Workers are being displaced by machines, leading to 'technological unemployment'.
- The future is the verge of a largely automated society.
- Automation entails liberation from toil, but may turn into a nightmare since people need work to live.
- A universal basic income (UBI) is needed to prevent a mass-unemployment catastrophe.
- Futurists like Erik Brynjolfsson and Andrew McAfee claim technologies from science fiction are becoming everyday reality
- They also warn that not all workers will benefit from these advances.
- Wages are stagnating labor's share of the annual income is decreasing and going to capital, leading to growing inequality.
- Rentier extraction could crowd out technological innovation.
- Martin Ford claims that the economy is headed for a tipping point, leading to an 'automated feudalism'.
- Education and retraining will not be enough, so guaranteed non-wage income is necessary.
- Silicon Valley figures like Bill Gates and Mark Zuckerberg support ideas like UBI, and Elon Musk is naming his SpaceX vessels after spaceships from Iain M. Banks's Culture Series.
- Politicians and advisors have identified with the automation discourse as it represents our "digital future".
- Obama noted automation will cause "economic dislocations" and is making middle class jobs obsolete.
- Robert Reich fears technology will displace menial and professional jobs, requiring a UBI.
- Lawrence Summer says the minimum wage is no longer a "stupid" idea due to workers' wages stagnating.
- Andrew Yang is running a presidential campaign on a "Humanity First", UBI platform.
- Nick Srnicek and Alex Williams argue for a socialist government to fulfill automation’s promise.
- Peter Frase explores alternative outcomes for a post-scarcity society.
- Left-wing writers stress there is no necessary progression into a post-work world.
- Srnicek, Williams, and Frase are all proponents of a UBI that serves as a bridge to 'fully automated luxury communism', conceptualized by Aaron Bastani.
- This is a meme about artificial intellgence, solar power, gene editing, asteroid mining and lab grown meat.
Recurrent Fears
- Various visions relies on a prediction of technological change.
- Automation substitutes for human labor, while labor-augmenting technologies increase human-productive capacities.
- Kurt Vonnegut describes automation where an entire job category is eliminated.
- It's debated whether current technologies are labor-substituting or labor-augmenting.
- Oxford Martin School suggests high risk of jobs in the US after automation.
- OECD predicts % fewer jobs at risk but significant changes in the way jobs are carried out.
- Automation is a constant feature of capitalism.
- Visions of automated factories appeared in the 1930s, 1950s, and 1980s, and 2010s.
- Automation theory points to utopian possibilities within capitalist societies.
- Economists like Wassily Leontief noted that the automatic price mechanism depends on human labor within production processes.
- Automation prognosticators argue that capitalism must be transitory mode of production.
- Taking its periodicity into account, automation theory may be described as a spontaneous discourse.
- Proponents of the automation discourse explain the low demand consistently in terms of runaway technology.
Declining labour demand
- The ascribed consequences of automation are showing and global capitalism is not providing enough jobs.
- Persistently low demand for labour reflects spikes and increasing jobless recoveries.
- There is declining labour shares of income.
- These shifts signal a decline in worker's bargaining power and wages are being skewed towards the highest earners
- Inequality is contained only by the strength of redistributive programmes.
- Critics of automation discourse are disturbed by trends leading to a low demand for labour.
- Automation isn't the cause for the low demand for labour.
- Focus the worlds attention on the problem of of a persistently low demand for labor.
- Even if the explanation is inadequate, automation theorists have at least tried to imagine broadly emancipatory solutions.
- Automation creates a vision of an emancipated future but it needs to be freed from the technocratic fantasies of how social change might take place.
- Major shifts in the economy have been adopted with social pressure due to communism and civilzational collapse.
- Instead of fearing movement, we should be apart of helping the next stage in our history.
- Reaching towards a post-scarcity world can result in mounting a battle against the change.
- The decline for the demand of labour is due to the tech advancements in the economic stagnation
- Fall in labour demand doesn't manifest in unemployment but rather under-employment
- Society could get there through struggles and path of social change.
Labour's Global Deindustrialization
- Automation-discourse theorists recognize that job-destruction will impact the labor in the service sector.
- Theorists therefore focus on new service-sector automation where robotization and AI is taking over.
- As a precedent to what they imagine, automation theorists point to what already happened in the manufacturing sector.
- Manufacturing had the employment-apocalypse first.
- Industrial robotics has been around for a long time (ex:"unimate' @ GM 1961)
- Industrialisation has given way to deindustrailsation throughout countries (less manufacturing)
- Manufacturing employment has fallen in the US, France and UK - but also Japan, Germany and Italy.
- Commonly assumed that deindustrialization is the result of offshoring production facilities.
- Manufacturing job loss has not been associated with declines in the manufacturing output
3 per cent per year since 1950.
- That basis, Brynjolfsson McAfee automation in compounding effects of exponential growth.
- US manufacturing growth-rate statistics over-inflated.
- Levels computers electronics sub-sector average rate over 10 per cent since the 1980s,
- Growth rates outside sub-sector 2 per cent.
- Since 2011, trends worse, where real output per hour lower than peak 2010 and growth rates are supposed rise.
- Correcting manufacturing-productivity statistics in line w/Germany/Japan.
- Germany/Japan have fallen from post-war peaks but automating with robots.
- Tesla California use robotics Germany and Japan use about 60 per cent more robots per 10k workers.
- Deindustrialization continues as economists expect.
- Detail, using accounting:
- ∆Ο – ΔΡ = ΔΕ (rate of growth output - rate of growth labour productivity = rate of employment)
Growth rates France
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Productivity growth rates much higher postwar 5.2 per cent yearly.
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Output higher 5.9 per cent.
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Steady increase in employment 0.7 per cent annually, output rates lower sharply, faster.
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productivity At 2.7 per cent faster output by cent annually.
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Manufacturing contracts by rapidly at 1.7.
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Disaggregation helps explain why see productivity growing rapid.
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Productivity growth only rapid relative output growth.
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Same pattern exist, production is low but not has there output growth which results decline levels employment.
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Output-Led deindustrialization has pure technology issues and need perspectives,
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The world has growing deindustrialization which varies but occurs
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Wealthier countries have high labour and capital but less growth.
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This leads to deindustrailstion in those countries due to their output growing 0
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Slower growth has low labour shares which cause unemployment, more automation and less growth.
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Automation is only making capital redundant in countries and so there have been no sources to boost profits.
Global overcapacity
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Economists don’t consider overapcaicity.
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Rate’s output growth declining and less workers due to low output demand, meaning automation.
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Productivity growth seems high as less workers needed with same capital.
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These causes lead to high unemployment as people are getting replaced.
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Firms compete now as growing slows, leads to less workers, less GDP and increased costs.
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This lead to rise technology to have new chain supplies and build big chains.
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Then the key turn, low Japanese firms entered the US and competed.
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High productivity for the countries meant there was an issue wage competitions
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The only way for a US company in this setting was to respond in productions
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Firms built to make less labour, but to find the lowest costs where possible.
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Similar strategies firms in Japan and infrastructure for communications.
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Wealthy countries manufacturing by still deindustrailsting.
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Firms building there as the world market shrinks.
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Chattanooga growing Detroit,
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Guangdong and expanding so a global issue.
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High degrees of robotic is good with globlal overcaity.
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Gives advantages and allows to take market share
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Workers know that this robot is helping firms for the benefit.
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China grew using mixed technology is good with labour, it is not fully using new technologies.
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System of over capacity and the Chinese have been able away to make firms which compete
Robotisation and production
- It could not otherwise in rate firms by
- China retain position well level is racing off a
- The jobs are to be little large
- Explains through capacity economy wages are
- Automation seek with for service the by technological
- Dynamic has so has a explanation it over.
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