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Automatization of The Technical Production

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Not everyone is a college educated and it’s hard for them to acquire new skills. Let’s take an example of two stereotypical workers the first one is a professional, creative type engineer or a doctor, let’s call him Joe he’s at the top of his country’s middle class his counterpart is not college educated and works as a labourer works as a clerk low-level white collar and blue collar work in the economy let’s call him John. If you go back about 50 years both Joe and John were leading similar life, they were both likely were able to have full-time jobs working at least 40 hrs a week.

As we started to progressively inject technology automation and digital stuff in the economy the fortunes of Joe and John diverged a lot over the time Joe was able to keep a full-time job John hasn’t over time Joe’s marriage has stayed quite happy, John’s hasn’t and Joe’s kids have grown up into two parent home John’s have not over time and he started to go to prison a lot more so I cannot show you a happy story in these social trends and they don’t show any signs of reversing themselves, they are also true no matter which ethnic group or demographic group we look at and they are actually getting very severe and most people think is they are Joe’s they are living this amazingly busy productive life and they’ve got all the benefits to show from that John is leading a very different life. They both are the proof of how right Voltaire was “work saves a man from three great evils: boredom vice and need”. With these challenges what do we do? without them the economic playbook is surprisingly clear and surprisingly straight forward and in the short term especially robots are not going to take all of our jobs in the next year or two so the classic economics book 101 is going to work just fine encourage entrepreneurship double down on infrastructure and make sure we are turning our people from our educational system with appropriate skills but for a longer term, if we are moving into an economy that is heavy on technology and light on labour, we have to consider some more radical interventions something like guaranteed minimum income. This will make a lot of people very uncomfortable because that idea is associated with the extreme left wing and with fairly radical schemes free distributing wealth.

The idea of the guaranteed minimum income has been championed by socialists like Fedrik Kiah, Richard Nickson, and Milton Freedman and if you find yourself worried that something like a guaranteed income is going to stifle our drive to succeed and make us kind of complacent you might be interested to know that social mobility one of the things that we really pride ourselves on is now lower than it is in the northern European countries that have this very generous social safety, so the economic playbook is pretty straightforward the societal one is a lot more challenging. I don’t know what the playbook is for getting John to get engaged and stay engaged throughout life. I do know is the education is the huge part of it I witnessed this first-hand I was a nursery kid for the first few years of my education and what that education taught me is that the world is an interesting place and my job is to go explore it my school stopped in 10th grade and then I had joined college it felt like I had been sent to the gulag, with the benefit of hindsight I know that the job was to prepare me for the life as a clerk or as a labourer but at the time it felt like the job was to bore me into submission with what was going around me we have to do better than this we cannot keep turning out Johns . so we see some green shoots the things getting better we see technology deeply impacting the education and engaging people from our younger learners up to a oldest ones we see very prominent business voices telling us we need to rethink some of the things we are holding to dear for a while and we see various sustained and data-driven efforts to understand and intervene some of the most troubled communities we have.

So the green shoots are out there and I don’t want to pretend for a minute that what we have is going to be enough. we are going to face a very tough challenge to give just one example unemployment in India is projected to increase from 17.7 million 2017 to 18 million in 2018 and we are not going to fix things for them by sending back them to primary schools and my biggest worry is that creating a world that we are going to have glittering technologies embedded in kind of a shabby society and supported by an economy that generates inequality instead of opportunity. But I don’t think that’s what we are going to do but we are going to do something a lot better for one very straight forward reason the facts are getting out there the realities of this new machine age and the change in the economy are becoming more widely known if we want to accelerate the process then we could do things have our best economists and policy makers play jeopardy against Watson we could send our parliament members on an autonomous car road trips and if we do enough of these kinds of things the awareness is going to sink into them, things are going to be different and then we are off to the races because I don’t believe for a second that we have forgotten to solve tough challenges or that we have become to apathetic or hard-hearted to even try Nehru once said if we are to bring the broad masses of the people of every land to the table of abundance it can only be by the tireless improvement of all our means of technical production Ghandi realised that there is one other ingredient he said I am a firm believer in people if given the truth they can be dependent upon meet any national crisis

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Automatization of the technical production. (2019, January 15). GradesFixer. Retrieved January 23, 2022, from
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