Summary: Today we have a status report on society’s recognition of the coming industrial revolution. The next wave of automation (the next industrial revolution) was long forecast (even in the 1950s), but became clearly visible in 2010 with the writings of far-seeing people like Martin Ford (reported to readers of the FM website in August 2010). The news hit the mainstream in 2012 with the publication of Race Against The Machine by Erik Brynjolfsson and Andrew McAfee (reported here in April 2012). 2013 was the year of declaring it no big deal. 2014 might be the year we realize the scale of the challenge it faces — and the potential rewards.
- The promise and peril of robots
- “The robots are coming and will terminate your jobs“, Tim Harford, Financial Times
- “The robots are coming. Will they bring wealth or a divided society?“, Gavin Kelly, The Guardian
- Remembering sabots (wooden shoes)
- For More Information
Red emphasis added.
(1) The promise and peril of robots
Automation of service jobs will, like the first industrial revolutions (agriculture, then manufacturing), probably will increase humanities wealth and income. A successful transition requires again managing two challenges:
- Most of the gains will go not to workers, but capital (i.e., owners of the machinery).
- There will be massive unemployment.
- distributing these gains to maintain both social stability democracy,
- creating new jobs for the unemployed — or otherwise supporting them,
- creating new jobs for the next generation.
So far the typical responses have been to assume past success guarantees success today — without the need for special effort (the invisible hand will provide for us) — and education. The first is a Marxist-like faith in history. The second is illogical innumeracy: not everybody can benefit from advanced education (already we produce more undergraduate degrees than the market requires), and there is no evidence that the market for advanced degrees will expand sufficiently to absorb those unemployed by automation.
They still tend look to the past for signs of this new revolution, failing to see that it has barely started — with little recognition of its potential magnitude and the resulting human cost.
The two articles shown below show progress in recognition of these things, and improvement over the blindness that characterized articles to date in the news media.
(2) “The robots are coming and will terminate your jobs“, Tim Harford, Financial Times, 27 September 2013 — “In future, there may be people who – despite being fit to work – have no economic value.” Excerpt:
Computing power is starting to solve everyday problems – which turn out to be the hardest ones. Computers were laughable drivers in 2004, when a computer-driving competition was “won” by a car that crashed after completing seven miles of a 150-mile course. Now computers drive cars safely.
In 2008, robots still struggled with a problem known as “Slam” – simultaneous localisation and mapping, the process of mentally building up a map of a new location, including hazards, as you move through it. In 2011, Slam was convincingly addressed by computer scientists using Microsoft’s “Kinect” gaming hub, an array of sensors and processors that until recently would have been impossibly costly but is suddenly compact and cheap.
Problems such as language recognition and Slam have so far prevented robots working alongside humans; or on tasks that are not precisely defined, such as taping up parcels of different sizes or cleaning a kitchen. Perhaps the robots really are now on the rise.
… What is sobering is that we have already seen convincing evidence of the impact of technology on the job market. Alan Manning of the London School of Economics coined the term “job polarisation” a decade ago, when he discovered that employment in the UK had been rising for people at the top and the bottom of the income scale. There was more demand for lawyers and burger flippers. It was middle-skill jobs that were disappearing. The same trend is true in the US, and is having the predictable effect on wages: strong gains at the top, some gains at the bottom, stagnation in the middle.