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RE: Why "Automation Destroys Jobs" is a Diseased View of Humanity

in #economics8 years ago

When I think about it, it is the cycle of property ownership, taxation and welfare which makes it most difficult for people to adapt to these seismic changes in the world.

In most countries, property ownership is restricted by government - you cannot just pick a plot and erect a house, workshop, factory etc. There are regulations; you have to purchase land, you have taxes to pay. If you could just get started on the next available plot of land you would have plenty more options available, including whether you worked (for a wage or salary) or not. Which brings us on to the next point...

In most countries, if you work or not you get taxed. Where you live, what you buy gets taxed. If you didn't have to pay a tax on where you lived or what you bought you would have plenty more options available. This then leads on to the next point...

Because you have to pay for a place to live and are taxed to live there, and are also taxed on the things you buy - therefore, if you lose your job then in most cases you're going to need some sort of welfare to pay for these things in order to survive. Alternatively, you could be lucky enough (so far) to not have been automated out of your job... yet... but several million others have, and they have to pay for somewhere to live, the taxes for where they live and for other things in their lives from food, clothes to whatever else.

If none of these financial burdens existed then you would have plenty more options available, you could, for example, simply not work for a while, develop new skills, test out some new strategies for making money or just live entirely self sufficiently. That choice would be yours. And given enough time you would realise that the automation that replaced your dreary, repetitive 9-5 job was not such a bad thing after all.

Would I worry that this would cause all people to give up work, that things would no longer function, that society would collapse? No, not at all. If some or many did give up work, fair enough, that should be their choice. However, if they got fed up with their lot then nobody should be expected to have what they've created or worked for taken away from them to support that lifestyle. That would then incite them to return to work or automate some task so that they didn't have to go back to work.

Alternatively, if the owners of a business which automated its production wanted to give away any products philanthropically then that should be their choice. And no doubt such a generous act would give them a feeling of satisfaction that money as itself couldn't.

The fact is that humans as a species have an infinite array of wants and desires, and whether the driver behind human action is creativity, money, prestige, power, hunger or whatever else - change happens. All it takes is one person to look at something they're presented with on a daily basis to imagine a simpler way of doing that thing to make their or other people's lives easier, to free up more time to do what they really want to do, and not before long they have a product that they can have produced (perhaps at first through human labour and then later by automation) that makes more people's lives easier and at the same time gives the creator more money, prestige, power, and further diminishes their chances of experiencing hunger.

Automation has often been portrayed as an enemy to our well-being, but that's probably because outwith of having a job you are burdened by pressures that are beyond what nature has evolved us to cope with. All things being equal, we are capable of thinking, organizing and carrying out tasks. However, if we can be made homeless, destitute, reliant on handouts or made to feel shameful of our existence because we're no longer part of the tax paying pool of labour then what can we be expected to achieve? That's not to say that some can't rebound from such a situation dramatically, but most can't. But is automation the guilty party, or as I mentioned above, are other factors at play?

The fact is that automation - removing ourselves from the direct hands-on work of physical labour (and as technology progresses, more mental labour) - makes our lives easier, simpler, more efficient, more productive and cleaner; whereas standing in the way of automation means our lives remain more difficult, more complex, less efficient, less productive, and less clean.

One thing that I'm often reminded about when the topic of automation arises is that the ancient Greeks knew how to harness steam power... they used it to automate the entrances to temples, they even knew how to automate machines (curiosities for the rich, i.e., toys). They knew how to build rudimentary steam trains. They could have built steam trains and ushered in the industrial revolution.

But they didn't.

And why not...

Because they thought "why bother when you're surrounded by slaves"?

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Thank you for writing this, you've made a few points click in my mind that hadn't previously.

I think you're absolutely right: the issue is the unnatural desperation people have to keep making money to get their basic needs met (call this the Treadmill Effect: better keep running to keep up, or get knocked off). In this day and age in the west, no-one owns their home outright. The vast majority have large monthly payments they have to make, and the rest have property taxes, etc. Both of these are unnatural conditions.

In most countries, property ownership is restricted by government - you cannot just pick a plot and erect a house, workshop, factory etc.

True, and government has no right to do that because no-one has a right to do that.

In most countries, if you work or not you get taxed. Where you live, what you buy gets taxed.

True, and government has no right to do that because no-one has a right to do that.

I would also point out that historically, people used liquid-based currencies, which are based on wealth that exists today. If I hold such a currency, it means I own existing wealth based on value created in the past. Over the past century, the US Government has steadily forced Americans (and more recently, the rest of the world) to switch to debt-based currency. If I hold such a currency, it means I am owed nonexistent wealth based on the hope that people will create value to fill that void in the future.

  1. Government has no right to do that because no-one has a right to do that.
  2. That's a really stupid idea. That's what's ultimately responsible for the Treadmill Effect.

Let's unpack that a bit further: debt-based currency creates the Treadmill Effect. Why? Because a balance of debt-based currency is a promise of future value, not existing wealth; therefore, someone, somewhere needs to work to create that value in order to pay his debts. If he doesn't, he's out of a house, out of a car, out of his land... And the more of this debt based currency there is, the faster the treadmills are running.

I want to think more about this, and perhaps make a more in-depth post about it later.

Its a bit of a stretch to say the Ancient Greeks could have built and used steam trains. Yes, they could use steam power, and yes, they could build rudimentary steam turbines, but none of these things was practical to use to power a vehicle. To do that, you would need a steam piston engine, and even if the greeks had had a blueprint, its unlikely that they would have manage the level of precision engineering and dye-making to build one that wouldnt explode. Also, even if they did manage to build one, its doubtful they had access to enough coal to keep it running for any significant amount of time.

To suggest they couldn't manage a suitable level of precision is to ignore the facts of what archaeology has already provided. For example, observe the intricacy of the Antikythera mechanism - https://en.wikipedia.org/wiki/Antikythera_mechanism

Ill admit, i had never heard of the Antikythera mechanism, and its pretty amazing. But you have to keep in mind precision is all about percentage margin of error, not absolute margin of error. Its much easier to build a tiny device to spec within 1 or 2mm than it is to build a very large device to spec within 1-2mm.

You have to remember, it isnt just the greeks who knew about steam power and never came up with the steam piston engine... Its the whole renaissance and thousands of years of invention. In fact, it took over a hundred years just from the description of a theoretical steam piston device to get to real steam locomotives.

The fact is that they had one piece of the puzzle. It was a very importnat piece (and a sine qua non) but they were never close in practice.

As a side note, Its crazy how quickly ive gotten used to "steem", i keep having to go back and correct the spelling every time im talking about water vapor.

Actually... forget about steam... imagine what those guys could have achieved if they were able to harness Steem Power?!?!

They wouldn't have fallen for the Euro that's for sure! ;)

Thats great in theory, and as a social expirement it might work somewhere like northern europe where the amount of land per capita is much higher than the rest of the world.

But if the government isnt enforcing property ownership, then how are you going to find a place to live without someone coming along and trying take it. If we could just "pick a plot of land" (that presumably someone else owns) and set up shop there, it would be chaos. It seems like it might be quite difficult to explore your options while youre fighting off mad max style marauders.

I also feel like youre overestimating the relative burden of taxes. yeah, things like rent and food are taxed. ANd perhaps taxation even quietly drives up prices beyond its simple magnitude. But at the end of the day, these are still things you must buy, unless you plan to be a subsistence farmer. Thats a pretty tough life though, and that wouldnt leave much time for the sort of exploration youre talking about either.

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