For that reason, Leonard says, it is easier to see how robots could work with humans than on their own in many applications. “People and robots working together can happen much more quickly than robots simply replacing humans,” he says. “That’s not going to happen in my lifetime at a massive scale. The semiautonomous taxi will still have a driver.”
Granted, there are much scarier forecasts out there, like that University of Oxford study. But on closer examination, those predictions tend to assume that if a job can be automated, it will be fully automated soon—which overestimates both the pace and the completeness of how automation actually gets adopted in the wild. History suggests that the process is much more uneven than that. The ATM, for example, is a textbook example of a machine that was designed to replace human labor. First introduced around 1970, ATMs hit widespread adoption in the late 1990s. Today, there are more than 400,000 ATMs in the US. But, as economist James Bessen has shown, the number of bank tellers actually rose between 2000 and 2010. That’s because even though the average number of tellers per branch fell, ATMs made it cheaper to open branches, so banks opened more of them. True, the Department of Labor does now predict that the number of tellers will decline by 8 percent over the next decade. But that’s 8 percent—not 50 percent. And it’s 45 years after the robot that was supposed to replace them made its debut. (Taking a wider view, Bessen found that of the 271 occupations listed on the 1950 census only one—elevator operator—had been rendered obsolete by automation by 2010.)
So if the data doesn’t show any evidence that robots are taking over, why are so many people even outside Silicon Valley convinced it’s happening? In the US, at least, it’s partly due to the coincidence of two widely observed trends. Between 2000 and 2009, 6 million US manufacturing jobs disappeared, and wage growth across the economy stagnated. In that same period, industrial robots were becoming more widespread, the internet seemed to be transforming everything, and AI became really useful for the first time. So it seemed logical to connect these phenomena: Robots had killed the good-­paying manufacturing job, and they were coming for the rest of us next.
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But something else happened in the global economy right around 2000 as well: China entered the World Trade Organization and massively ramped up production. And it was this, not automation, that really devastated American manufacturing. A recent paper by the economists Daron Acemoglu and Pascual Restrepo—titled, fittingly, “Robots and Jobs”—got a lot of attention for its claim that industrial automation has been responsible for the loss of up to 670,000 jobs since 1990. But just in the period between 1999 and 2011, trade with China was responsible for the loss of 2.4 million jobs: almost four times as many. “If you want to know what happened to manufacturing after 2000, the answer is very clearly not automation, it’s China,” Dean Baker says. “We’ve been running massive trade deficits, driven mainly by manufacturing, and we’ve seen a precipitous plunge in the number of manufacturing jobs. To say those two things aren’t correlated is nuts.” (In other words, Donald Trump isn’t entirely wrong about what’s happened to American factory jobs.)
The expression day job is often used for a job one works in order to make ends meet while performing low-paying (or non-paying) work in their preferred vocation. Archetypal examples of this are the woman who works as a waitress (her day job) while she tries to become an actress, and the professional athlete who works as a laborer in the off season because he is currently only able to make the roster of a semi-professional team.
Brynjolfsson and McAfee are not Luddites. Indeed, they are sometimes accused of being too optimistic about the extent and speed of recent digital advances. Brynjolfsson says they began writing Race Against the Machine, the 2011 book in which they laid out much of their argument, because they wanted to explain the economic benefits of these new technologies (Brynjolfsson spent much of the 1990s sniffing out evidence that information technology was boosting rates of productivity). But it became clear to them that the same technologies making many jobs safer, easier, and more productive were also reducing the demand for many types of human workers.
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Meanwhile, Kiva itself is hiring. Orange balloons—the same color as the robots—hover over multiple cubicles in its sprawling office, signaling that the occupants arrived within the last month. Most of these new employees are software engineers: while the robots are the company’s poster boys, its lesser-known innovations lie in the complex algorithms that guide the robots’ movements and determine where in the warehouse products are stored. These algorithms help make the system adaptable. It can learn, for example, that a certain product is seldom ordered, so it should be stored in a remote area.
“Over the last year interest in cryptocurrency jobs on Indeed has risen strongly. However, in recent months the prices of bitcoin and other cryptocurrencies have been volatile and (in some cases) declining,” the company said. “Job seeker interest on Indeed for bitcoin and cryptocurrency jobs has fallen, too.”
Given his calm and reasoned academic demeanor, it is easy to miss just how provocative Erik Brynjolfsson’s contention really is. ­Brynjolfsson, a professor at the MIT Sloan School of Management, and his collaborator and coauthor Andrew McAfee have been arguing for the last year and a half that impressive advances in computer technology—from improved industrial robotics to automated translation services—are largely behind the sluggish employment growth of the last 10 to 15 years. Even more ominous for workers, the MIT academics foresee dismal prospects for many types of jobs as these powerful new technologies are increasingly adopted not only in manufacturing, clerical, and retail work but in professions such as law, financial services, education, and medicine.
Perhaps the most damning piece of evidence, according to Brynjolfsson, is a chart that only an economist could love. In economics, productivity—the amount of economic value created for a given unit of input, such as an hour of labor—is a crucial indicator of growth and wealth creation. It is a measure of progress. On the chart Brynjolfsson likes to show, separate lines represent productivity and total employment in the United States. For years after World War II, the two lines closely tracked each other, with increases in jobs corresponding to increases in productivity. The pattern is clear: as businesses generated more value from their workers, the country as a whole became richer, which fueled more economic activity and created even more jobs. Then, beginning in 2000, the lines diverge; productivity continues to rise robustly, but employment suddenly wilts. By 2011, a significant gap appears between the two lines, showing economic growth with no parallel increase in job creation. Brynjolfsson and McAfee call it the “great decoupling.” And Brynjolfsson says he is confident that technology is behind both the healthy growth in productivity and the weak growth in jobs.
None of this is to say that automation and AI aren’t having an important impact on the economy. But that impact is far more nuanced and limited than the doomsday forecasts suggest. A rigorous study of the impact of robots in manufacturing, agriculture, and utilities across 17 countries, for instance, found that robots did reduce the hours of lower-skilled workers—but they didn’t decrease the total hours worked by humans, and they actually boosted wages. In other words, automation may affect the kind of work humans do, but at the moment, it’s hard to see that it’s leading to a world without work. McAfee, in fact, says of his earlier public statements, “If I had to do it over again, I would put more emphasis on the way technology leads to structural changes in the economy, and less on jobs, jobs, jobs. The central phenomenon is not net job loss. It’s the shift in the kinds of jobs that are available.”
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The peculiar thing about this historical moment is that we’re afraid of two contradictory futures at once. On the one hand, we’re told that robots are coming for our jobs and that their superior productivity will transform industry after industry. If that happens, economic growth will soar and society as a whole will be vastly richer than it is today. But at the same time, we’re told that we’re in an era of secular stagnation, stuck with an economy that’s doomed to slow growth and stagnant wages. In this world, we need to worry about how we’re going to support an aging population and pay for rising health costs, because we’re not going to be much richer in the future than we are today. Both of these futures are possible. But they can’t both come true. Fretting about both the rise of the robots and about secular stagnation doesn’t make any sense. Yet that’s precisely what many intelligent people are doing.
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That robots, automation, and software can replace people might seem obvious to anyone who’s worked in automotive manufacturing or as a travel agent. But Brynjolfsson and McAfee’s claim is more troubling and controversial. They believe that rapid technological change has been destroying jobs faster than it is creating them, contributing to the stagnation of median income and the growth of inequality in the United States. And, they suspect, something similar is happening in other technologically advanced countries.
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