“The Lights in the Tunnel”
by Martin Ford explores the implications of the increasing automation
of labour. It begins by visualizing the world economy, and how it will
change as automation increasingly eliminates labour. Many commonly held
beliefs are dispelled throughout the book with convincing logic and some
unquestionable evidence. This is not something we can afford to ignore.
Even without the current rapid advances in technology or full
artificial general intelligence, automation is going to have some
significant effects on society, and it is going to happen sooner than
you think.
The Reality of Automation
This is not science fiction. Far-off notions of intelligent androids
performing our every wish are the least of our worries. Automation is
set to displace workers in many areas with little advance in technology.
With profit as the incentive, it is only a matter of time.
Much of this displacement is simply a question of design. For
example, automated checkouts are not intelligent, they’re just
interfaces. Many jobs can be replaced by pre-programmed interfaces. The
service industry is already seeing this happen. Other industries can be replaced by large databases (specifically knowledge based work such as General Practice and Law).
You might be reassured by the belief that “Robots can’t do everything”, and that until the day they take all the jobs, or perhaps just your job, you don’t have to worry about it.
Wrong.
As the video “Humans need not apply”
points out, robots don’t need to be perfect, they just need to be
better than us. Human drivers kill 40,000 people a year in the United
States alone, automated vehicles will be much safer. Your robot vacuum
cleaner might miss the skirting boards, but it doesn’t matter, it saves
hours of work and goes over the same spot dozens of times leaving it
cleaner than you would have.
Also, automation requires software, and software is built from
libraries of other software. Once developers have built software to
perform a task, that software is then available to other developers to
build on. Once a problem has been solved, it’s solved forever. The
solution can be improved but you never need to go back.
So with automation being even better than perceived, and problems
being continuously solved, it’s only a matter of time before automated
solutions take a large proportion of jobs.
This becomes a problem, not just for the individual, but our entire economy. The entire system of consumerism depends on the majority having
jobs. There is in fact a tipping point, a point where there are not
enough people earning an income to sustain our current system.
The Tipping Point
With no buyers, there can be no sellers. The lack of consumer
confidence will result in less demand and businesses will be less likely
to take on more staff. The economy will embark on a downward spiral of
unemployment.
This, of course, is not just a problem for the average worker, but
for the rich elite, who will no longer have a market from which to make
their fortune. Not only will less workers be bad for the economy, but
with the massive drop in income tax revenues, even public services are
set to be hit hard by the coming unemployment tsunami.
Nobody will be safe. Even cheap labour jobs in countries such as
India and China cannot sustain their level of growth once automation
hits critical mass, partly because they rely on Western prosperity in
the first place, but also because their jobs will also be subject to
automation, both in the west and in developed countries.
Then there is the misconception of the “Luddite Fallacy”, the belief
that the economy will always create new jobs, and advancing technology
will continue to create new industries for displaced workers.
Martin Ford’s argument is that accelerating automation technology
will ultimately invade many of the industries that have traditionally
been labour intensive. He also argues that any new industries that are
created by these advances are unlikely to be labour intensive, focusing
more on capital and expensive equipment – take Google’s extremely low
staff number compared with its income as a prime example.
Therefore, our fate is sealed – and the idea that every individual
must “earn their living by the sweat of their brow” is all but obsolete.
Ironically, it is capitalism that has led us to this transition.
$lavery
There was an interesting point made in the book: This concept of “free labour” has happened before.
The slave trade in America was active for over 200 years. It made
slave owners rich beyond their dreams, while poorer whites, unable to
compete against free labour, lived in abject poverty. So how did it
continue for 200 years, with so much poverty? Well, the slave colonies
relied on exports. There was a constant flow of new money from overseas.
A system that depends on external resources can only increase its
prosperity as long as the external resources continue. Today, we
function under the illusion of separate countries trading with each
other, but in essence, the whole world is the market, so really there is
nobody to export to. Growth in this case can only come from inside the
system – from more of the Earth’s limited resources, including labour.
Today, we are the slaves. Although we are paid, our money is simply to drive the system of consumption.
It is what allows the producers to grow. At first, this sounds like a
good thing. Essentially, the corporations provide us with value.
The problem becomes apparent when we realize that the system relies on us as much as we rely on it.
The labour of the working classes feeds this system. This is why we are, essentially, forced to work.
We need to consume to live, but to consume, we must work. This system, where producers are also the consumers, relies on itself to function. Production drives consumption and consumption drives production. Break this cycle and the system cannot continue.
A World Without Jobs
The reason this could be so disruptive, is that our automated future will
decouple production from consumption. Things can still be produced, but
there will be no way of affording it, because we won’t have jobs.
How can we have production if there is nobody to consume?
While Martin Ford does a great job of identifying the problems of
automation in the current economy, most of his solutions are
fundamentally flawed. One suggestion is an overwhelming “Robin Hood”
style government welfare system that taxes producers to allow the
consumers to continue consuming. He says that even the most hardcore
libertarian will have to agree to this, as without it, there will be no
market to which any business can sell its goods.
He explains that in this system, there would still be incentives for
people to do good for society for example, and capitalism would still
reward those who become the best producers.
However, it soon becomes clear that many of the problems of
capitalism (relentless growth, inherently aberrant behavior, destructive
affluence etc) are still not addressed in his suggested solutions.
Additionally, his argument is based on the assumptions that
consumption is necessary for growth, and that growth is necessary for
progress. This is a very narrow view. To believe that consumption is a
necessary factor in progress is an assumption with little grounding, and
as we all know, growth for the sake of growth is the ideology of
cancer.
Regardless of Martin Ford’s suggestions, we cannot ignore the most
pressing implication of the decoupling of labour from the
production/consumption cycle. That is, the elimination of the assumption
that everyone must work.
This is a profound concept that will have significant implications on
society. Without a job, how can one survive? If not everyone has to
work, why should anyone? It wouldn’t be fair if some people went to work and some didn’t.
What do we do when the lack of employment combines with technology
and actually removes our requirement to work? For example, when our
essential amenities are provided for free by renewable-energy-powered,
fully automated farms, house building machines, and more, and the masses
suddenly realise that work is no longer obligatory – we will see a near
instantaneous collapse of the labour based economy.
These imminent tipping points will force us to rethink the roles of
humans in the economy. This is perhaps the most pressing issue in our
transition to a new kind of economy.
Luckily, the world is changing, and changing fast. We are seeing more
and more possibilities, game changers, emerging ideas. The Internet is
opening up new landscapes of economic paradigms (AirBnb, Netflix, Uber).
Movements are forming that no longer participate in the current
economic system, such as collaborative consumption and peer to peer
systems. Technology is enabling people to manipulate the system to their
own ends. Some have suggested the eradication of money altogether.
The movement towards a new system, a system where producers and
consumers are no longer the same thing, where jobs are no longer
obligatory, is already in progress.
With the very survival of the working and middle classes at stake, the question is whether a new system can be built in time.