What if jobs are not the solution but the problem?
aeon.co
aeon.co
I like this bit:
"the knowledge worker is under severe external constraints. Much of their work is assisted or mediated through information technology, which contributes to a de-skilling of their cognitive labor. And on top of this they are expected to fully invest themselves in their jobs in a way that manufacturing laborers never did: they must demonstrate commitment above and beyond their contracted work hours, and express constant satisfaction and happiness about their work. The whole thing is exhausting."
That link describes a call center worker as a knowledge worker. That's absolute nonsense. You could, in theory, argue that a call center worker is about managing some sort of knowledge, but in truth they deal with less knowledge than a subsistence farmer, who has to know a hell of a lot about agronomy.
Classifying call center drones (of which I was once one) as 'knowledge workers', and then using them to discuss how hard knowledge workers have it, is beyond disingenuous.
> they must demonstrate commitment above and beyond their contracted work hours, and express constant satisfaction and happiness about their work
My wife and I are both software engineers and that is a nearly constant source of stress for us. In our experience, people in our field frown upon people who treat software engineering as just their job. Two things I recall from my experience that illustrate this:
- I had a team lead who once said, "I don't want people in this team working like this is a 9-5 job"
- Something I heard from someone in a team that worked close to ours: "the candidate was solid in problem solving and coding ability, but we didn't hire them because they didn't show passion"
This sort of bullshit is pervasive in our field and IMO is what the quote above is referring to.
That's why I don't think I'm going to pursue a career in software engineering despite doing it as a hobby since a young age. I think there'd be some irreversible damage to my brain if I used something I've liked and identified with for my whole life as a means to do something I hate. To me it seems like a form of self-induced brainwashing. I'll stick with blue collar jobs. The pay is not nearly as good, but my mind can be free.
A part of me dislikes that I turned what was a genuine interest of mine into my job. Software was a lot more fun to do before it became a professional thing for me.
Maybe I just have a good company, but I'd much rather do this than ever go back to factory work, even if the pay were better in the factory job.
At least I can try to automate IT work more easily.
All of that added up to a perfect storm of awful working conditions. I was motivated to work as hard as possible simply so I could get the hell out of there every night.
In software there is no one right answer, the passion comes into play when you look for the most elegant or most performant solution, that may not be obvious on the first pass. This makes it a highly creative position, which I don't think software engineers are given enough credit for.
So while I wouldn't have phrased it in the way that your lead did, I personally look for people passionate about their jobs. The actual hours they keep are less important (though should overlap with their team).
That is true, I don't dispute it. What I dislike is the shunning of those who want to do it just as their job.
Also, passion comes in different forms. For example, I am "passionate" (as much as I hate the term) about delivering reliable, secure and well-documented products. Sometimes a project will be focused on that and my passion will show, other times projects focus on things I just can't get myself to care enough about and will only do as much as is strictly necessary to get the job done.
Usually I hire for passionate people, and usually it isn't because we need 80-hour workweeks. Usually it's just because the output is often better, they notice more mistakes, take more initiative, and bond with their teammates more.
However, in this case, suddenly we had to switch from, "It's a 30-hour per week project," to, "It's an 80-hour per week project," and because most of the team was deeply passionate about it, everything was fine and everyone continued to show up and do fantastic work until we completed the project.
We had two team members who refused to stay more than the 30 hours per week we projected at the start. Even if we offered them more money, they wouldn't do it, because they just didn't want to. Work-life balance, etc. But it was okay, because both were in non-critical roles. So we let them go and continued without them.
Had one of our hires in a critical role been "not passionate", we would've failed the project. But we didn't, because I made certain that when we hired the most critical roles, we hired for passion as much as anything else.
We were on-site in a foreign country. So the options if there were no passionate people to hire would've been, "Stay 9 weeks instead of 3 weeks in a foreign country, for 3x the cost, and do it in 30-hour weeks," or, "Give up."
Fortunately for me, I suppose, there were and are people passionate about our business, mission, and industry available for hire.
You don't need passionate people for everything. I prefer dispassionate hires for repetitive roles that need steadiness and regularity. If we need a guy to clock in every Monday morning at 7 AM and clock out by 4 PM and do the same work every day and do it consistently, that's a role where we don't need "passion", and where passion would even get in the way (passionate people want to get more involved, they want more tasks and assignments, they want promotions, etc. Great for some roles, but not for the repetitive grinder roles).
But, yes. There is a distinct need for passionate people. There is a market demand for them. It isn't just "Company X is cheap and wants twice the work for half the pay."
Sometimes you want the guy who's going to do it "just as their job." Sometimes you want the guy who's going to do it as a personal mission, as a great undertaking to accomplish.
It depends on the role, the project, and the hiring manager. But that's market forces for you - different people, looking for different things, end up in different places, and command different positions, rates, and lifestyles. It's the free market. And it allows us to do things we could not if we were all forced to adhere to one single way of doing things. This is a very good thing.
But the question we all want to know the answer to is: Did they get paid for working 80hrs or for 'working' 30hrs?
But when it comes to the job, they get what they pay for.
I seriously mean that. Movies and revisionist history are full of companies that successfully pulled out last minute victories. Real life is full of companies that kept that death march until the end, and blamed the workers for not keeping up.
Bottomline -- you want to call me outside work hours, then you better compensate me accordingly.
I knew this as a fairly senior manager. Many people dont realize the stark differences in pay across different classes of workers. Getting up at 3am to fix a problem doesnt work for someone who needs to then get up at 5am to commute into work. It needs more thought and I did just that -- we had workers rotate night batch schedules and gave them Work-From-Home days or late-come-in-days during on-call periods. Even some of these things require thought -- allowing someone to come in late does'nt help if they live so far away that express/local train schedules dont make it feasible to come in mid-day...the commute ends up being as long as the half-day.
Sorry for the ramble, TLDR: be mindful of people's situations and things they dont control. Not everyone has it as good as you do. HR can save a dollar here but it comes out of productivity figures. Don't expect "banker's hours" but forget "banker's pay."
ASIDE: Several years later, the HR group got absorbed into the executive offices in posh rural Connecticut, where few low-level workers could afford to live locally. Low-level workers were required to visit the head office 2x/wk. The same exact HR manager then complained (in earshot) of how her commute was close to 3hrs each way and how she planned to sneak out at 4:30pm because she couldn't take it anymore.
I think the concern is about what is "within reason".
I have no doubt that if I wanted to work a strict 9-5 schedule I could easily do that as a developer. There are plenty of big companies which have a punch-in/punch-out system. They also pay less than market.
On the other hand, if I'm making hundreds of thousands of dollars a year then I think it's pretty damn reasonable for me to work longer hours and to be available at random times.
They are being paid to create a certain amount of value, and capture what is generally a small fraction of it.
How does your logic scale? If a dev making $200k per annum has to put in 10 hours a day, does an executive making $600k per annum have to put in 30 hours per day?
Developers are not a subjugated underclass. If you really only want to work 40 hours a week, there are tons of employers who will happily hire you as a developer (at a lower salary).
There's no reason you should be entitled to both a high salary and a short working week.
I fully reject the idea that more hours should be a requirement for good pay.
Further, as a startup founder myself, I don't want my employees working much more than a 40 hour week. I have found* I prefer the work produced by someone with work-life balance, than someone who works all the time.
* subjective sampling of colleagues/coworkers/direct reports/hires.
If you are being paid more than the median American, and have options which would still pay more than the median while working less, then complaining about being overworked is ridiculous. There are simple solutions of just getting a different job.
If you don't want people working more, by all means manage your company that way. The market will decide if its an effective strategy.
We're changing management though, and in the new management's eyes, my position doesn't need to be contacted outside of work hours, so they're taking away the phones. Outside of an occasional pre-declared odd schedule, I won't have to deal with my job during my own time.
If someone takes a position where it's clearly expected that they'll need to work off-hours, and they fight against that, that bothers me. It's an inconvenience that they've accepted as part of taking the position. The reverse applies too; if it isn't clear to me that a position I take will expect a certain amount of work outside of pre-agreed upon hours, I'll resent when they start piling them on.
I view this as an engineering and social process problem: your systems should be reliably engineered such that off hours maintenance or other technical issues are minimized. This gets to the social part: people will be more receptive to off hours work if its a rare occurance.
Those good jobs exist, and they don't really pay worse in absolute terms. In fact, they often pay better when you calculate your pay hourly. So just pick the right employer and get out of the awfulness you describe.
Edit: to clarify, by nine-to-fiver I mean someone who is just punching the clock in order to make a living but does not care much about what they are doing. I don't really care what hours you work if you're really into it when you do.
I love writing software, but that does not mean I don't love other things. Years ago I lived and breathed software. That's not the case anymore. I'd much rather help my daughter with her homework than read about the latest uber nifty JavaScript transpiler that will change my life and make everything awesome with unicorns and whatnot.
Our field churns the same ideas over and over. After a few years things get old really fast.
But there's what I said in another comment in this thread: I love writing reliable, correct, secure, well-documented software. Focus on those and my passion comes out. But come 5-ish o'clock and you bet I'm leaving the office to pick up my daughter from school and spend some time talking with her about her day and what she learned and whatnot. And then my wife will come home, we'll have dinner and we'll spend some time talking about our days and watching TV. Without those things I might as well not have a life.
I don't like it when there's an expectation that I'll be available to work 24/7. I don't want people expecting me to be on social media promoting my work or things related to it. I'll disappoint anyone who expected me to think of work as my life's mission or anything like that (unless I'm using my skills to help find a cure to a serious disease, or realistically help solving the problem of poverty in the world - that would change the game).
I have a number of interests in my life that are completely unrelated to work. Those are the things that I live for. Working is a means to bring in some cash that enables me to enjoy other things in life.
Because you work mainly for the money is why I would not want to work with you. Not because you like other things.
To satisfy a political agenda?
Because you're a child looking for fun? (And will create yet another cookie-cutter framework named something childish.)
To satisfy a need for validation because you aren't an adult?
To make great products? (so someone else can make money.)
Because it's new and shiny and trendy and you need to keep up with the Jones's?
Why is an experienced coder so much more efficient than an inexperienced coder? Because they have learned many infrastructures, frameworks, and algorithms, have learned through experience not to make certain mistakes like over-complicating a problem or seeking clarity to a problem prior to coding it and thus understand the cost of requirements, and have picked up good design habitations like divide and conquer, coding without making assumptions, or multi-tiered architectures.
Most Managers don't understand the foundation of good software and great IT infrastructure are solid requirements. That requires a solid investment, like a building foundation, in analyzing the business; great managers know enough about a particular business that they can spot the mistakes analysts make in building requirements and vet them so they don't change in major ways. Do colleges teach any of this? No.
When Changing requirements meets improper planning and tight project budgets (which may be tight because the company is in trouble, or may be tight because the Project Manager is incompetent), it means over-working staff to hit those changes which produces cognitive pollution. That pollutes the code base with too many assumptions, and pollutes the staff's minds with bad habitations and expectations. Eventually like any pollution, it builds up until it becomes terminal; developers quit, the cost of making any change becomes terminal for the code base, and so forth. We've all seen it. More importantly you take a developer who's worked a 9-5, then spend 2 hours a night for the last 10 years learning advanced mathematics, or low-level compiler design, or other things that really create good habits and techniques, and you literally cannot introduce them to that environment because the environment won't be able to value them; it can't see through the pollution.
The tautology simply is the overtime exemption. If you don't have staff clocking in and out, there's not a chance in hell of you ever figuring out how much time it takes to do any project, which in turn, feeds the tautology. Very simple question to ask at an interview "Do you track the hours of your software developers?" "Well no." "Why would I want to work at a company, overtime-exempt no less, when the management has no idea how to estimate the hours consumed for a project?". We get into concepts like "We practice scrum and estimate the story points based upon"; you sound like a 5-year old when you start talking that kind of jargon.
The pollution sloshes around in the talent pool, and companies end up with poisoned projects because of it.
You could prove your point and offer your employer to work without your salary / equity. Would you?
What I find concerning are people who write mediocre code 9 to 5 but don't do anything to improve their skills on their own time.
I once believed the usual propaganda about "passion" and "work hard, play hard". But I was so miserable at my job that I actually wanted to quit software engineering for good. Fast forward 5 years and I now have a 9 to 5 job (8 to 4 actually, which is even better for me). I can assure you that the main difference is that my current job is emotionally manageable and, more important, sustainable. Which is good both for me and for my employer. Meanwhile, I've seen lots of burnout on people who continued to believe the propaganda. Which is, again, bad both for them and their employers.
Forgetting about my job duties and considering myself unemployed from 4PM to 8AM has done wonders for both my mental health and my output at work. It's a win-win situation.
I also have other things I love to do.
The point is to imagine what your life would be like if you didn't have to work for money. Imagine if you could work on startup ideas and software projects simply because you were passionate about solving a problem or creating something, and not because of the money. And it doesn't even have to be something useful, or something that people will pay for. You can work on literally anything you love doing, and you can find people who feel the same way.
That's the opposite of a "nine-to-fiver" who is primarily there for the money, although they might also enjoy the work.
Of course, you can be passionate about working on something while maintaining a healthy work/life balance. That's not really what people mean when they say "nine-to-fiver".
I've been in this position, and I've concluded: if you really have no financial constraints, you'd be daft to spend your time working on a startup, or solving the dull, pedestrian problems that are of such utilitarian concern to society.
If you're creative, why wouldn't you just be an artist and make things that are personally and intensely meaningful to you (but only to you)?
If you're an engineer, why wouldn't you just spend your time inventing new esoteric programming languages to implement Conway's game of life, rather than the drudgery of, say, making and debugging a robust automated toll booth, that could save society millions of dollars? That only makes sense if you're anticipating an eventual return to the monetized (wage) economy.
Or - start a family and invest your full time into raising and educating your own children - probably the most rational choice, with the least value to the rest of society.
I am arguing against the idea that we don't need money to create incentives.
Making a robust automated toll booth sounds a lot more appealing to me than making yet another programming language.
I'm with you - the catch is, how do you know what are the actual important problems, except by how people allocate money?
We could each list a thousand problems that ought to be solved, but we can only work on one thing at a time. Thus we use a scarce resource (money) to communicate our actual priorities.
> ... the catch is, how do you know what are the actual important problems, except by how people allocate money?
Attention is another scarce good that has value. Many open source projects have value because they are solving a problem many people have. The original authors knew they were on to someone because people laid attention to the solution.
That seems like a strange way to describe preparing the next generation. :D
Don't most people consider raising and educating their children to be one of the most valuable things to be done for society? eg having more knowledgeable/skilled/clueful young is better "for everyone" (as a generalisation) than not
In fact people generally don't recognize this value. If I thought to myself, "That's a fair division of labor - I'll do the work, and instead of raising my own kids I'll support this guy's family" - my own genes would be removed from the pool pretty quickly (unless group selection pressure were so intense that this was the only way we could out-compete the neighboring villages).
On the other hand - if you were willing to raise my kids alongside your own (as a teacher or babysitter), there's a much better chance I'd see that as a fair exchange of value.
Like you said, there's nothing inherently wrong with people who have other priorities or aren't passionate about their job. There are plenty of positions that they'd be a good fit for.
But it's equally true that if you're really passionate about your work (to the point where it's your top priority in life) you want to work with a team that is equally motivated. There's nothing wrong with that. A top professional soccer player would be unhappy if they were asked to work with a team of amateur high school players.
Of course this is just a personal anecdote but during heavier work weeks I have very little energy or interest in any spare time hacking. In contrast on normal 9-5 weeks I tend to do a lot more of reading, coding and other things that develop my professional skills and enable me to perform better in my day job.
I can't remember the last time I couldn't leave 4 pm sharp with the rest of the colleagues from manufacturing, sales, design or accounting. It's certainly long ago and rarely happens.
Plus, being a two man dev operation we enjoy a lot of freedom and are able to chose technologies and tools we see fit for the task. Furthermore you are confronted with all kinds of real world problems, interact with people of all trades (as opposed to living in a SV startup bubble) and colleagues value our work, actually perceive it as some kind of magic (in contrast to being code monkeys). To me this is a very enjoyable work environment, that combines the best parts of a 9-5 job and exciting startup atmosphere.
The only alternative I saw was lying: it will pass, I'll re-motivate myself… Instead I merely promised to do my best, which no longer included motivation or commitment.
Didn't go so well.
Hopefully moving out of a potentially er.. soul killing role (best wording I can think of) to something else will turn out to be the right move in hind sight. :)
I had a boss who would constantly tell us about some wizard team mates of his at another company who could perform miracles and knew everything. I'm sure he thought that he was inspiring us, but it actually made at least me feel like a complete bozo.
No, I can't perform miracles. I don't know everything. I have better things to do with my time than devote my life and my blood to the corporation.
Our field is constantly changing and it requires that we keep up with the trends (not unlike medicine or other well paid careers). Its a pain in the arse having to explain a better approach to people who have never bothered to learn anything more than what they got taught at university ten years ago.
How about the Amazon drones, even the ones on the "Amazon software team"? Is working at Amazon much different than what your parent described? Odd working hours, working beyond your duty hours, constant stress and some more negatives. Amazon does get in bad light due to such practices. So.
Add to that the H1B visa drones.
Although I agree with your overall premise and argument about that article, I think many if not most workers in software world are not very far off.
edit: added H1B point
Disingenuous because it doesn't align with how you have chosen define "knowledge worker"? Because as far as I'm concerned a knowledge worker is a person who's knowledge is their main tool. "White collar" is another common title. Call center drones definitely qualify under either of these definitions. I mean, a point of the piece is that there's a misinterpretation about how glamorous the "knowledge worker" title is. The fact that you work a cushy, high-paying job doesn't refute that.
Also, I could easily believe that farming <operations> have higher net knowledge requirements versus call center <operations> (it's arguable). But the units of work for both farming and call centers are as de-skilled as possible for maximum employee fungibility.
If they had to then they would. Since they do not, obviously they do not have to. Very few farmers of any sort know much of anything about agriculture other than cargo cult knowledge that is largely misguided or inaccurate.
There's a lot of work that needs doing. There's an abundance of people to do the work, and I feel like we have plenty of natural resources. It seems to me that we could build housing for everyone, we have the capability to do it. It's just that our economic model isn't about the betterment of manking, providing the people what they need, etc.
If you told an unemployed man that he could have guaranteed food, clothing, medical care, lodging and basic income for his family if he goes work a job where he builds houses for other family in need, I think that would be a very appealing offer.
Right now people work because otherwise they die, socially in civilized continental Europe, possibly literally in "modern" America (and possibly the UK).
You imply that being a fast food worker, janitor, or "office drone" is not meaningful work. To many people it is. Your comment comes across as demeaning.
The post seems to be suggesting that we should just eliminate all of the "least desirable" jobs, which is a fine idea as long as you realize that the next tier of jobs will then immediately become the "least desirable".
Also, you're not your job, you're employed, however tenuously by the fast food industry.
As I said in another comment, "being" a fast food worker is not "feeding people". Working in a soup kitchen is feeding people.
The janitorial function is a necessity in any specialized society which doesn't reward you for cleaning after yourself.
And you really have never heard of someone in an office job that is soul sucking? Like say people organizing layoffs, or accepting/denying coverage at HMO, or call center employees trying to ensare retiree into getting extra fees for services they never use etc...
Don't you think society would be better served if these kind of jobs could not find warm bodies because there was more morally satisfying and equally (or better) financially rewarding proposition around?
Are you saying that making food for people is meaningless? That cleaning doesn't help anyone?
Humans are always going to regard someone as being "at the bottom", just because that's how we think.
I've often thought about how meaningful my own work is, in the sense that: what if people just didn't buy my company's stupid product? Would anybody be worse off? Not really.
The only meaning I've found is the satisfaction of doing my job well, on its own terms - whether that's sweeping the floors at a burger joint, or making software builds.
If you want to meaningfully feed people, I believe it's called working at a soup kitchen. Usually staffed by volunteers. The reward for most meaningful work is often only in the human element. It sure ain't in the pocketbook.
Working in the fast food industry is not "making food for people," it's being a cog in a machine that transform the maximum amount of uncaring for its employees and products into the maximum of profits.
Janitorial work is necessary but not paid in proportion to the social good it provides.
And I take offense at your comment about "Humans are always going to regard someone as being "at the bottom", just because that's how we think.", it's not human nature, it's a social construct.
There is absolutely a housing shortage in popular metropolitan areas (take your pick) . If there wasn't, then prices wouldn't be so high.
Movies and TV shows are filmed in NY because it's a world class, iconic city. It didn't become that because of media.
Desires change through life. Sure when I was 20-something I'd be happy living in manhattan, but in my 30s I want somewhere in the country with a nice small school for the kids. When I'm in my 50s I suspect a house by the beach would be good, maybe even abroad. When it comes to my 70s and I've got grandkids I'll want to be near them.
How many people want to live in Ny to live the "friends" lifestyle, find out reality doesn't meet expectation, then want to leave but can't due to work?
Each plot owns the land beneath, yes?
So build downwards if zoning prohibits building up.
I find it striking it is not done even more. I recognize the technical difficulties but the costs are surely lower than the potential value of easily doubling the sq ft.
There are interesting tricks you can do with fibre optic cable and mirrors to send daylight down there. Not to mention CoeLux and similar products.
For example, an apartment is required to have a window or fresh air source.
https://www.youtube.com/watch?v=sLJ0zZQb9x0
I admit I just want this because the idea of hidden labyrinths behind our cities is just intrinsically appealing to me. There could be shops! Neon signs! It would be cyberpunk and then I would know the future has arrived :-)
The monetary payoff does seem to be there. I wonder if the delay in transformations of this sort might have a lot to do with a lack of 3D expertise among builders.
Dissagree. Technolgy works best when augmented with humans, however the training needed for ppl (ie truck drivers) may take longer to retool their minds then they have life left. So there may be a generation gap in jobs. Also consider space as the final frontier. How much work will be needed to build fleets of ships to colonize space and all that entails?
Vacant units in 2016: http://www.realtytrac.com/news/foreclosure-trends/u-s-q1-201...
Snapshot of US homeless numbers (likely low): http://www.endhomelessness.org/library/entry/SOH2016
Assuming these numbers are in any way accurate that leaves us with roughly 2 and a third houses per reported homeless person in the US.
So it looks like the initial statement may not be accurate but a housing surplus certainly exists.
And don't even get me started on large-scale planet-care projects— is there a way we can pay people to reclaim destroyed farmland, to grow things locally and organically, replant forests, study and clean up the ocean garbage patches, etc etc.
Certainly you could create infinite amounts of "paid" makework but in the end it amounts to keeping a system going for its own sake, and wasting people's potential by allocating them "dig a hole and fill it in" jobs when they could be being creative.
Realistically there are loads of things that could be done to make the world a better place. Equally there are lots of people out of work. If someone can provide the funds to marry those things together, it's a win win. But who pays? Maybe Apple could go all philanthropic and depart with all that cash they're carrying.
The problem with "creating jobs" is that someone (the government) has to decide (for its citizens) what kind of work is worth doing. The no-longer-needed workers are then forced into those non-essential jobs to earn their right for bare survival. They won't have time to do what they think is important.
The underlying assumption is that unpaid work is somehow worthless to society. And that people cannot decide for themselves how the spend the time freed up by automation.
Whether it's a New Deal style public works program, or the new car plant opening that isn't yet fully automated because the government gave them tax breaks, it's makework and a distraction from what people would do if they could work their vocations.
There's no spots for talented people to work on shit like the failed $30 million IBM census disaster.
But smoking pot and filling in holes with low lives? You betcha! You better earn your welfare and enjoy it or you'll be reported!
There are a lot of people out there with a lot of free time who are willing to work for very little.
Maybe the Govt should make an app that people can use their phone to sign up and do jobs like cleaning up parks etc.. and the Govt can pay them.
the sorts of jobs you're talking about arent always all so clearly verified/verifiable. you'd need other government workers just to verify that the job was done properly... ufff I can see the waste now
The problem with large scale low skilled jobs (e.g. fast food) becoming automated is that these jobs aren't really special as jobs, even if they have a very important socioeconomic role in our society - it's not yet cost effective to automate them, but when it will, then at the same time (roughly speaking, +/- 10 years) all other low skilled jobs will be ripe for automation as well.
A good semi-trailer truck driver will have his job for years to come, but when it does happen, then all the reasonable jobs to which he could currently shift would have their own downsizing due to their own automation and an excessive supply potential workers of poor ex-drivers who were shed years before the good driver.
What in Big Hero Six says anything about the tractability of automating elderly care in the real world?
There are people literally inviting you to escalators in the airport. An empty train station would have half a dozen attendants. Road repair, in the middle of the night, 6 people directing foot traffic, with only two (us) pedestrians in sight.
This was surprising against the stereotype of machine-based Japanese efficiency. I assume it's some half employment, half social support programme going on.
The measurable trends of the past half-century, and the plausible projections for the next half-century, are just too empirically grounded to dismiss as dismal science or ideological hokum
As NN Taleb points out exhaustively: social science puts too much faith in their models. "Measurable" trends? How do we even know what to measure, or that it's a trend? "Plausible" projections? What is the scientific measure of plausibility?
there’s not enough work to go around
There's a limitless amount of work - it just doesn't pay minimum wage. Every time you lower the minimum wage, it makes a new class of activities profitable.
you’ve just met an attractive stranger at a party, or you’re online looking for someone, anyone, but you don’t ask: ‘So, what do you do?’
This ubiquitous question may be asked and answered in the sense of "what are you passionate about" rather than "what is your largest source of income". It would be great if those co-incide, but that's often not the case.
But the bottom line is this. Most jobs aren’t created by private, corporate investment, so raising taxes on corporate income won’t affect employment.
This seems to be conjuring a whole new economic model out of thin air. How can it be the case that all of the models are wrong and that this model is right? I'm not saying it's wrong or right, but the preceding argumentation is not enough to support this line of thought.
Of course, if we take away that constraint through some means, like for example basic income, then the same problem remains in a different form; the value of the work drops below the level that a human can be bothered to do it.
Because this minimum exists, there is indeed a finite amount of work, and as machines drop the value of human labor in certain areas, there is potentially less and less of it available.
I agree with this analysis; the question becomes: how do we value a person's contribution to society, if not by someone's willingness to pay their wages?
I hope there is a solution in advanced tools for economic cooperation... imagine 90% of the population living off something like "GoFundMe for artists and educators".
If we can't or won't find such an answer, we then have the question: how many lives are we willing to subsidize who are contributing, by our best measures, a net negative to society?
Think of it this way. I am willing to give you money, if you make a significant positive contribution to my life. I am willing to participate in a collective to scheme to give you money, if what you do helps people in a way I can appreciate.
It's certainly a distorted signal, but better than no signal at all.
If you are posing this question from the implicit position as being one of those who are a net positive, reflect on how trivially chance could intervene and turn you into a net negative.
I imagine a future where 90% of the population must become shills for themselves to make a living, and I do not like it.
All of us are a net negative some of the time. The question is, how many can be net negatives all of the time? 10x? 100x? One person supporting the entire rest of the human population?
However, if we look at year 2100 then it seems rather clear that a majority of population will not ever be able to make any real contribution to wider society whatsoever, since any job that they can do can be done better and cheaper by someone else (machines or other people - e.g. being a third rate guitarist is of no use if you have many first rate guitarists that also are eager to work for free) so there can be no practical, economic reason to ever choose them for any job.
Subsidizing people who aren't contributing to society seems the only humane option. Having them "contribute" to society in some artificial way is not a solution, since that policy by itself would be a net negative to society; Not subsidizing them is not a stable solution, since in the absence of any reasonable ways to survive they'll either starve to death or manage to violently overthrow the system.
In essence, the likely future involves the unprecedented scenario of billions of people who are, from an economic standpoint, absolutely unnecessary and a net economic negative to society; and the only (?) possible solutions seem to be either to accept that we'll subsidize them or exterminate them. Or, possibly, "others" will subsidize or exterminate us, as it's not set in stone on which side I or my kids will be.
I think humane is the key word here. We are human, after all. It's human that you would take someone in to your home and feed and care for them, though they might never repay you.
It's not human that you would take 10 people into your home and support them indefinitely while they contribute nothing, and then support their children, their children's children, etc forever.
The simple fact is that welfare and minimum wages have removed many jobs from the economy, and those jobs that were removed kept the economy at full employment. There's no real change aside from us effectively banning some jobs. Remove the ban, remove welfare, and we'd have full employment again. Is that a good thing to do? Probably not, but it's an important point to understand that the author completely left out of his essay. You're not going to find a good solution if you don't even stop to consider how we got here.
The saddest thing, for me, is the effect on economy. Since the corporate earnings remain the same but the automation means that less workers get paid (and, when controlling for inflation, workers don't get paid much more, except in a few select industries), this means that the owners keep the rest, and this is why the gap between poor and rich people is widening so fast.
I'm not saying that this process is all sugar and rainbows, losing your job to automation _is hard_. Some will never recover.
However, human society has always valued what is scarce. What will be scarce in the future is products and services made by human hands.
Already we see this happening. Visit a farmer's market - see all the hand-crafted soaps? If you could have a new desk from Ikea or made with hand hewn wood, engraved and embellished by a true craftsman, which would you prefer? It sounds trite today, but as our most basic necessities continue to be met at ever cheaper rates, we'll start trading our labor for better, higher quality things. Where quality is measured in human ingenuity and artistic beauty.
We can see this shift all around us. The rise in natural grocery chains, farmer's markets, Etsy. There are hundreds if not thousands of individuals who have quit their jobs to become full time YouTube creators.
I know that it all sounds banal, but it's because it is currently only the wealthiest in society who at this moment can afford to shop exclusivly at Whole Foods. However, in a truely vibrant economy, one that embraces change and makes reallocation of effort as smooth as possible, one with ample access to capital, one with low barriers to entry, will bring these luxuries of today to society as a whole tomorrow. And it will probably happen faster than human history has ever made it happen before. We're just impatient and spoiled by a world that's changing ever more quickly.
Remove the ban? Watch a whole range of job wages plummet, and a whole range of people fall into poverty. People will have to work horrendous hours, or in horrendous conditions just to get enough to survive. This will only increase the income inequality, making it harder for the poor to make a living. The employment numbers may have increased - but at what cost? More civil unrest, more crime, more people in hopeless situations. Whilst you realise its not a good idea, you seem to trivialise it.
I'm sure the author did consider this point. They realised that - we didn't get here simply because we introduced welfare and minimum wage - and that getting rid of them isn't a valid approach to get to full employment. Its something so obvious its not worth discussing.
Education won't help. Teach a human how to do something, and you have one human who can do it. Teach a computer how to do something, and you can have as many computers as needed doing it. The US has already hit "peak school" in terms of economic benefit. About half of college graduates take jobs that don't really require a college education. Trade schools do even worse.
The classic solutions are lots of poor people in slums and dying towns, and ethnic cleansing.
Do you have a source for this statistic? Because there are some important questions about such a study that might clarify the true meaning of such a number.
1.) How many of the graduates employed in "jobs that don't really require a college education" move on to a job that does, how long does it take them to do so? What does that look like vs. a person without a college education?
2.) What is defined as a "job that doesn't really require a college education"? Does it mean the employer did not require a college education to apply? Does it mean that the surveyor has decided the job(s) in question don't require a college education, even though the employers filter out applicants who lack one?
3.) What is the definition of a college education? As of 2014, only ~32% of people over the age of 25 have a bachelor's degree [0]. Are you comparing anyone who ever went to college with everyone who didn't?
[0]https://en.wikipedia.org/wiki/Educational_attainment_in_the_... (Source is US gov't)
Most notably, the number comes from self-reporting. So this could range from "barista" to "sales" to "software engineer".
I'm not particularly surprised when someone's first job out of college doesn't make use of their education. But there's a huge difference between a business major going into sales to learn an industry (or a code monkey stuck on a boring project they could've worked on in high school), and an English major becoming a taxi driver.
In short, from the data, it's impossible to distinguish between "putting in your time" or "bad first assignment", and "actually under-utilized".
* This doesn't generalize well to STEM graduates, where the numbers are closer to 75%.
IMO the GP's assessment that we've reached "peak school" is absolutely incorrect. Rather, we've seen a big shift in the type of labor that's needed in a short time frame. If a freshly minted college grad can fetch $100,000+ and great benefits, then "peak school" isn't a real problem yet.
'Opening a restaurant' does not require a Uni education, but I'd rather the person be smarter, more educated, understand aesthetics, customers, finance etc. - and be college educated.
You don't need 'high school education' to do a lot of construction work, but I'd rather hire high school graduates.
There's a lot of intelligence that goes into many of these kinds of jobs. As people are smarter, the quality of the output goes up.
I think that Uni develops character, opens horizons, builds esteem and competence in some areas, helps people organize their ideas, 'think bigger' , expose them to all sorts of ideas and disciplines they may have never heard of.
People are sometimes smug about 'MBAs'. I was an Eng. - and never took an Econ course in my life. My MBA was mind-altering (granted I also did it overseas and that provided some other kind of exposure).
Uni is usually worth it if the kids try to get something out of it.
This is pragmatically not true.
There are tons and tons of jobs that can't be done by computers.
The 'entertainment sector' was not even a part of the economy 100 years ago. Now it's a big chunk.
Think of how big sports are. That was all 'unpaid amateur' stuff before.
It's worth examining how much we ought to work and not, but we also should understand there will always be work to do.
Also - the industrial revolution had a far greater direct impact upon 'labour' than the computing revolution.
'Machines' could do the work of thousands of men - and the economic translation was direct - not 'soft' as we have with computers.
And yet what happened? Consumer surpluses found their way into the economy, and 'people did other stuff'.
Paradoxically - through the entire history of 'automation' unskilled labour has been getting more expensive, not less.
Teaching a computer to do anything is fucking HARD. And most of the time the problems are just unsolvable.
Sure you see cool demos like one that can cook for you. That shit is awesome. So uhhh... where are they? They're demos and proofs of concept, so expensive, require maintenance and programmers (gasp!). Don't except to see real ones mass produced and taking over for a good 30-40-50 years.
We can do a lot with computers and automation but IMHO every article that starts with, "If you don't agree then you're an idiot" is immediately sitting on a faulty foundation.
Whenever anyone talks about 'the singularity' (i.e. computer consciousness) I usually respond with "get your bot to make me a goddam ham sandwich and clean my toilet!" - then we can talk!
But let's avoid calling people 'retarded', eh :)
How about "get your bot to build my microprocessors" or "get your bot to route my package through a warehouse" or "get your bot to weld a car"? There you can get robots to do amazing things, and they can cost whatever the company wants to charge because those robots are making money. If a robot can build a modern CPU, it could clean your toilet. That's not the problem.
Even still, there are household robots that are fairly common. I've got one running upstairs right now. It's called a Roomba.
Likewise for a sandwich, if the meat and cheese and bread are all in robot-compatible forms, it's just layering them together. Not much more complicated than a printer that can pull from multiple paper trays. You can even combine the two for maximum efficiency.
What's hard is making a robot behave like a human, because even humans struggle at behaving like a human. IMO there's no purpose to making a robot have the same physical constraints as a human. Our bodies are pretty shitty when you think about it. Robots can be much more elegant.
If you don't think there are sandwich-making robots that actually exist, I'd wonder how you think gas station ham sandwiches are made. Hint: it's a conveyor belt that drops bread, then cheese, then ham, then more bread. That's a robot that makes sandwiches. I'd sell you one for $1m, but you'd probably say "I can make my own for free, thank you!"
But that robot can't refill its consumables, it can't mop up the floor, and it can't deal with the mess after your semi-demented grandpa missed half the bowl. This solution is useful for a large rest stop with a dozen toilettes and thousands of customers per day (and employees that do the above tasks), and utterly useless for your own home.
> IMO there's no purpose to making a robot have the same physical constraints as a human. Our bodies are pretty shitty when you think about it. Robots can be much more elegant.
Our bodies have a huge advantage: they are incredibly flexible, and surprisingly strong for their dexterity. No robot we have ever built even comes close. You can have lots of robots in your home (Roomba, toilet bowl cleaner, dish washer, sandwich maker, a kitchen machine, uuh, is there anything else you can automate?) and you'll still need a human doing a lot of work. Or you can have a single human working half-time in your home, and you don't need a single robot. Give me a robot that can do 90% of all household chores, and I'm sold.
I think it's another discussion whether we can make robots who each do one thing well. Roomba, etc.
Besides the space constraints with multiple robots, I think it's clear there are significant advantages in having just 1 entity that can perform all the required cleaning tasks. Much like single-purpose hardware has given way (mostly) to software, except in areas with interesting requirements (GPu etc.)
The disadvantage of the specialized machines you speak of is their limited to no adaptability, inflexibility to novel situations and obsolescence upon changing environments. There's need for actually smart appliances (which is what the kind of robots you spoke would be) but they'd be best suited to easily circumscribable tasks. Not what many have in mind when they think robots.
Sorry, but no. Very, very hard.
+ Find my fridge + Open it + Find the meat + Find the bread + Open the mayo + Get a knife + Spread it
etc. etc. etc.
Even if you do it 'the machines way' it's extremely difficult.
No way. Not for quite a while.
Much harder than 'driving a car'.
Without proving it directly - let me do it indirectly:
Factories would love to have robots with such intelligence and dexterity. It's definitely worth '10's of thousands of dollars' per machine to do that.
If machines could do that ... even Chinese labourers would be out of a job.
We can barely make robotic arms that 'hold stuff' of any weight reasonably without getting out of balance.
Go ahead and look at industrial grade robot-arms - you'll see these powerful steel machines - max load: 5 lbs (!).
McDonald's would be having robots prep your burgers - even ina a controlled/machine setting - and they don't do it - because it's a ways off.
There are so many issues with that one, it's a long way off.
I agree with the idea that we are 20 years away from a walking talking robot. One that could find the fridge, figure out which mayo is the good one, and which mayo has gone bad. The get the right ham, not the crap the kids like, and find the knives. Where are all the knives? And then put the stuff away, so nobody complains later....
I own 2 welding robots.(Miller-Panasonic Prefab Welding Cell) They are time consuming to program, and you do have to 'touch up' the program all the time. They are both 7 axis machines, with the capability of running another 13 axis each. The complexity of a setup is much much higher than a self driving car, which has go/stop/left/right as possible inputs. A self drive car is only 2 axis of movement.
In order to deal with 900 types of sandwiches in another factory, humans are used, not machines . http://www.mirror.co.uk/news/uk-news/sandwich-factory-worker... . They don't do it because they like paying humans. It is too complex to handle the high mix of products (900 sandwich types) for automation.
Those are some of the worst sandwiches I've ever seen – which confirms your point, I suppose.
Again, they just don't do it in a "human" way. They do it like robots do it. Driving a car is infinitely harder because you have to do it the human way.
Again, you're thinking of making an android: something that resembles a human and has fingers and hands and would spread butter with a knife. That's a far cry from "a robot that makes a sandwich". Those have existed for longer than the Internet has.
That would be Item #130001 from Integrated Food Services.[1] "Today IFS and their affiliates own and operate a state-of-the-art facility which includes two USDA processing plants, a wholesale bakery and a dry warehouse which total over 100,000 square feet on five acres. We are located in the greater Los Angeles area, almost equidistant from downtown, LAX and the Port of Los Angeles." Most of the prepackaged sandwiches in Southern California come from those plants. Here's an automated sandwich assembly line.[2]
[1] http://integratedfoodservice.com [2] https://www.youtube.com/watch?v=V8D9YE26QEs
Do you think it's likely we'll see robots making high quality goods like this, or will they always be commoditized and (my opinion) fully disgusting?
Robots clearly do well with mechanical items like cars. There doesn't seem to be any immediate reasons they can't make an artisan sandwich. Maybe it's a limitation of ingredient spoilage / exposure to air during the process?
Curious what you think -- will robots making food continue to be McDonalds level, or will we have good food coming from machines?
But that's just it. Sports (and entertainment, your other example) are tiny, because only the top .001% are valued. Everyone else is basically slaving away for free in the hopes that they make it to that top echelon. Even the amount of support jobs is teeny compared to other industries.
The problem with advanced automation is that it eliminates sectors that have huge employment bases (think of how many people that drive for a living) and replaces them with sectors that tend to be much smaller in comparison.
Computer sector is younger and bigger. What is your point?
> There are tons and tons of jobs that can't be done by computers.
Not really, less and less all the time. Automation has been a trend since Industrial age. It is now expanding into knowledge work. Translation, copywriting, all sorts of analysis & prediction, navigation/driving (for fun look up how many truck driver jobs that will be automated in 10-20 years). IBM Watson isn't just a research project lark, IBM is developing a product to automate thinking and reasoning. Google all over it too.
> Think of how big sports are. That was all 'unpaid amateur' stuff before.
Do you believe there is more than an insignificant fraction of people employed by "sports"? btw there use to be people compiling stats, doing betting. They have been replaced by machines.
> unskilled labour has been getting more expensive, not less.
unskilled is misnomer, its un-automatable labour. Humans can't compete with machines. And more and more activities are being automated. Even labour such as medical, legal and acting.
I wonder how far we are from peak entertainment (in developed countries, I mean). With a fixed population size and a fixed number of hours in the day for each person, there is a hard limit on the number of hours of entertainment that can be delivered by industry.
And I'm not even sure I would spend anything more than I do now on entertainment even if all my working hours suddenly became leisure time (unless you're going to start counting activities like home improvement and amateur science and engineering projects as entertainment).
"Economic contribution" is hardly a factor if you discuss morality.
There are plenty of jobs that are just plain harmful.
There is also a difference in subjective value if a job is done by a computer or a human being; computers do not suffer.
Those jobs exist because someone finds them beneficial.
I'm not sure what you mean with perfectly aligned interests. What would those be?
The jobcalypse would give us the time needed to become better humans instead of better marginally intelligent machines. Make music, draw, sow, be creative. Lovingly tend to your garden. Develop crazy new theories about stuff and discuss them with like-minded individuals. Spend weeks on end in a library, not because you need the knowledge, but because you suddenly took a fancy to ancient Nordic literature. Come out to find that other people are interested in the subject and teach them. What about the meaning of life, the universe, and everything? Are we going to find that by watching TV all day because "education won't help"?
There is stuff do. Lots of it. It's in our heads.
The big question is will the majority be able to maintain enough power to obtain income for those who aren't working, or will we see some kind of serious class warfare/starving populations?
This is a huge question in human history and it remains to be seen how we as a species are going to answer it.
[My hope regarding the labor is that it meaningless work can be replaced with research and development]
Until then, if there's not enough jobs, that's an artificially induced shortage (e.g. austerity).
* Excepting natural resources - e.g. "more" beachfront property.
That's the idea. Let's for the moment, just assume that AI and robots and some other technologies are ridiculously productive sometime in the future and we solve all sorts of problems and have the resources to provide everyone with everything they want.
At that point it's not a question of giving everyone jobs it's a question of whether or not we decide to distribute our plentiful resources (and a question of, should we?).
Of course, I don't think the time has arrived yet for all this to happen. But as mentioned earlier, I do think it is going to happen (if we don't have some horrible nuclear war or some other megadisaster that kills everyone first)
You can already decide to do this today, and the government will even reward you for doing so. What you're really talking about is redistributing others' resources.
I complained, and I was told that if I don't like it I can quit. I said that I would be going to the regulatory body, and I was outright threatened with physical harm: "Bad things happen to people who do that."
Automation is getting cheaper by the year, and more open. People will be able to benefit directly from automation after the transit period, and won't need UBI forever. At some point it's going to be free to cover the needs, especially if we can use raw materials that are in abundance in nature. After the first self replicating factory is going to be made, any country or region could bootstrap itself out of poverty.
Self replication is closer than AGI, it's just a matter of digitizing the industrial process and developing accessible materials. Human society, the ecosystem and the cell are self replicating factories too. We need to compile a factory in itself, to bootstrap the whole material process. Just like a DNA molecule is replicating all it needs to survive and reproduce, such a factory would be able to make "babies".
Hmm, that's interesting, I hope it's not true.
But if you want more than basic, then you have to perform labour of some sort. Want to take the trip to Mars? Gotta work for it.
Yes, there will be a difference between those who labour and those who don't, but I still think it would be a huge win if noone in society would ever struggle to put food on their table.
There's a struggle between retired pensioners and everyone else in society about how much retired citizens should get, but there's still an understanding on both sides that past labour has some value, but that that value is less than present labour, so there's a balance. I hope the same would be true in a post-labour society.
And, of course, the difference between the labourers and the not-labourers would be an incentive to reach post-scarcity where that difference is wiped out.
This is already a reality in many countries. It would be very easy to also make it a reality in the US. The resources are there.
It's a pretty flimsy disguise though. If people are simultaneously complaining about bad infrastructure and high taxes, then they are simply saying that they want their earned money themselves more than they want to use it for shared infrastructure projects. People would just rather have the latest iPhone than good highways. :-/
Sure, and the American people picked Trump as leader because they thought he was the most qualified person in the entire country.
The current taxation systems nowhere pays for all the externalities. If a company made a dollar in a country, a fair share of it should get back to the state for providing the environment that made it possible. Education, security, infrastructure.
Prices for goods just need to keep dropping, as they have already been doing to.
If they keep dropping, then our existing welfare system will handle the rest.
If the percent money that society spends in welfare state the same, and goods get cheaper and cheaper, then that means that living off welfare will eventually be a pretty sweet deal, able to provide all your wants and needs.
Rent, food, energy, all the things you need to live are getting more expensive with inflation. The welfare system is lagging behind and the benefits need to be bumped a little every year or so or it gets harder and harder to live on them. Unfortunately we apparently can't always seem to afford to increase the benefits. For instance student benefits in Finland were "cut" by simply not increasing them in accordance with the index.
In the United States it will be the class warfare/starving thing. You don't deserve anything here unless you pay for it. Many people believe that taking unemployment compensation is shameful.
I think a lot of us will be fed in prisons.
EDIT: In some places you have to pay to not be vertical. https://www.theguardian.com/society/2015/feb/18/defensive-ar...
> Sculptor Fabian Brunsing brought a satirical eye to the issue by creating the “pay bench”, an art installation of a park bench that retracts its metal spikes for a limited time when the prospective sitter feeds it a coin. Chinese officials, completely missing the joke, thought that this was a great idea and installed similar benches in Yantai Park of the Shangdong province.
So true. Even things like safety, cleanliness, education quality, etc. are things we must pay for here, in stark contrast to other countries in the world.
TANSTAAFL
We already have class warfare and mass hunger (the number of people who go partially hungry despite food-stamps and food banks is atrocious, let alone the number who would starve without such programs). The current answer from the lower classes has been the revival of organized labor among Fight for 15 and other movements. It's our job in the "higher" working class, having more education and leeway to operate, to throw out economic and political force behind both the social movements of the lower classes and behind "full unemployment" measures such as universal health-care and reduced working hours.
and from the article
> there’s not enough work to go around
I disagree.
There's not enough paid employment to go around, but there is an enormous amount of work that needs to be done!
Our entire society needs to be weaned off its carbon dependence if we want humans to survive the next century. This will involve at the very least the wholesale transformation of our transport and energy systems, and probably construction too. We should be putting massive numbers of people to work on solving and fixing this, and there's no point leaving people unemployed while there's still work that needs to be done. Whether we can organise society in time to achieve this is the real question. Once we've fixed the environment and created a truly sustainable civilization, then we can talk about labor that is surplus.
Other work that will be in increasing demand is healthcare and elderly care (especially given the aging populations of most countries). I don't see robots replacing humans for this any time soon, and we are far from the point where we have enough health / personal care for everyone. Plenty more examples of work that's needed but not currently being done can be found with a bit of creative thought...
Edit: Also, while there seems to be a positive correlation between GDP per capita and energy efficiency, the most efficient nations in the world have a very low GDP per capita... I wonder why it is the case.
https://en.wikipedia.org/wiki/Energy_intensity#Economic_ener...
Yes, you can, practically speaking. The amount of energy needed to produce a given amount of value to humans is not fixed; it can be decreased, and in principle can be made as small as we like given sufficient advances in technology. That means the amount of value to humans that can be produced with a fixed amount of energy can increase, in principle as much as we like. That's what the parent to your post was saying.
Obviously it will be a while before we have technology advanced to the point where, say, the amount of value currently being produced per year on Earth can be produced with one tenth or one hundredth or less of the energy it currently takes. But we also have a while before we hit any hard limits of the sort you are referring to.
The economy can grow by a million X before we start running into physical limitations on solar energy.
We could grow our economy by literally 1000x and still not have any worry of running out of energy coming from the sun.
Your comment sounds like someone who says we shouldn't bother doing anything due to the inevitable heat death of the universe.
[0] https://en.wikipedia.org/wiki/Kardashev_scale#Current_status...
Yes, and the government can compensate for unemployment by investing in public works, at least until the automation reaches a level where UBI needs to be implemented.
This is not true.
Total workforce participation grew radically through the last 100 years - esp. because the introduction of women into different jobs.
Demographics aside, we have really quite high participation rates - even after 200 years of automation.
Also - because of demographic changes, we're already at a stage of declining labour force participation (since 2000), and we already retire at '60-ish' and live another 30 years not doing a whole lot, but amassing massive healthcare bills.
So - people more than ever need to be 'gainfully and productively employed' while they can, in order to offset the fact they'll be hanging out for quite long time not creating direct value.
I'm unemployed and I really don't think I have any duties to work in fast food or to deliver pizza because I must contribute. If I decide I can live poor and be happy with welfare, I will. I think it's a great thing to be able to live a frugal life and still be healthy enough.
I hear so many people yelling about moochers and parasites, it's becoming weird. Everybody wants everybody to behave like superman, yet nobody realizes you can't educate everyone to have enough qualified workers.
My great fear is that as time passes, more and more people decide to live like I do, and economies might change because people stop consuming.
Why do you think that you should have the right to live off of other people's work? Welfare checks aren't fairy money, they're money that came out of other people's paychecks.
Yes, jobs are available, but they also get filled quickly. There's no shortage. The unemployed can out-bid each other in a "how-low-can-you-go" competition, but that just leads to working poor.
That's true, but I increasingly don't mind. It's also money that came from your own paycheck if you were a high earner in the past.
In short, because most of world organised around work is nonsense. So getting a bit of money to live poorly without work is not any more nonsensical. That's a way to see it.
A huge number of people want this mismatch to be fixed, but are wise enough to know they have zero ability to do anything about it.
We're in the midst of discovering just how useless "consciousness raising" slacktivist campaigns are, and that was basically the last hope for being able to contribute to a solution for a lot of people.
You only have a natural right to the things that you make with your hands. Money that's handed to you is not a right, it's a privilege.
Inflation is not the problem it used to be and I actually think it's a much better measure of the economy's capacity than unemployment. Would inflation of 4% be that bad for the public and financial system anyways?
In the US at least I strongly oppose tax-based welfare because I percieve it as a rigged system where the wealthy can avoid paying their fair share through loop holes and classifying their income differently than mine. But inflation in a sense is unavoidable and progressive since the more money you have the more you lose to inflation if you don't invest it. This is especially true if the cause of inflation is labor scarcity and not some other key resource like oil.
Printing money is equivalent to a tax on all US dollar holdings. The value of the printed money is subtracted from everyone else's holdings by inflation. Doing this excessively, e.g. to fund the entire public sector, would cause an inflationary spiral, as everyone tries to get rid of their rapidly-devaluing dollars as quickly as possible.
The only fundamental difference is taxing income to pay for welfare vs. taxing wealth.
Inflation is a tax on currency holdings. So if a person has $10,000 and inflation is 4%, they are effectively paying a $400 tax on it –– because the -4% loss of value is transferred to the one causing the inflation, i.e. the printer of money, which is the government. The people would just divest their US dollar holdings, and switch to investments with better capital preservation, and ROI.
> a rigged system where the wealthy can avoid paying their fair share [...] But inflation in a sense is unavoidable and progressive
Most people with non-trivial savings invest their money. People who have a basic level of understanding of how to manage their finances understand that cash in a bad investment. The US dollar has an effective "investment yield" of -2%. The best interest rates you can get in the US, don't exceed 2%. If I lock up my money in a 5-year CD (certificate of deposit), I get close to 0% returns. Why would I ever settle for 0% returns on such a terrible illiquid investments?
Most sensible people will invest any cash (USD/etc) they have, and will aim to maximize their investment returns, concordant with their investment goals. Most of the wealth in the world (held by people with lots of savings, and by companies/institutions) is in the form of stock/shares and bonds. Currency is just a medium for transmission/exchange of money. Most of the wealth in the world is held in stocks, bonds, and property, and not in currency.
> the wealthy can avoid paying their fair share through loop holes and classifying their income differently than mine
The solution to that is simply going back to classifying capital gains[1], dividends[2], and carried interest[3] as regular taxable income. The current regular federal income tax system[4] is very progressive and effective. Getting rid of that would be the wrong thing to do, FICA taxes are a bit regressive, but that can also be easily fixed by eliminating the Social Security wage base[5].
References:
[1] https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_Unite...
[2] https://en.wikipedia.org/wiki/Dividend_tax#United_States
[3] https://en.wikipedia.org/wiki/Carried_interest#United_States
[4] https://en.wikipedia.org/wiki/Rate_schedule_(federal_income_...
I think you are also assuming that returns on all investments would stay the same under increased inflation which I seriously doubt.
More importantly I understand that wealthy people have a smaller portion of their wealth in cash than poor people what I am arguing for is that perhaps inflation is at most no worse than our current taxation scheme.
The two words that are most likely to cause a old-fashioned Hacker News libertarian-slash-armchair-economist freakout: "print money."
The US is doing exactly that, and has been for decades. Since the 2008 debacle it has being doing even more of it.
> inflation in a sense is unavoidable
If you mean politically unavoidable, I agree; no government in human history has been able to avoid messing with the currency.
If you mean unavoidable period, I'm not sure why it would be. There is nothing in principle impossible about having a currency that cannot be inflated.
> if the cause of inflation is labor scarcity
How does labor scarcity cause inflation?
By unavoidable I meant that if you hold currency, you are subject to it. Especially if you are holding assets that are appreciating at a slower rate than inflation. Essentially I don't think the wealthy get to loophole or lawyer their way out of inflation the same way they can with taxes.
I meant labor scarcity not in the exonomic sense but in the sense of literally running out of people to allocate. I think it's clear that if businesses have to compete for a dwindling pool of workers prices will inevitably rise.
The US money supply has been increasing fairly steadily since WW II.
> The US has been borrowing money but that hardly translates to printing it.
The US has indeed been borrowing money. But it has also been printing it.
> I can definitely see how quantitative easing essentially translates to printing a couple of trillion to buy outstanding debt but that has already stopped.
QE is just the latest round of printing money. (More precisely three rounds, since there was QE1, QE2, and QE3.)
> By unavoidable I meant that if you hold currency, you are subject to it.
Only if the supply of currency increases. Why is that unavoidable?
> I meant labor scarcity not in the exonomic sense but in the sense of literally running out of people to allocate. I think it's clear that if businesses have to compete for a dwindling pool of workers prices will inevitably rise.
No, it's not clear at all. What is clear is that the price of labor (wages and salaries) will increase relative to the price of capital (e.g., interest rates). But that does not mean price levels in general will rise. That depends on how well businesses can substitute capital for labor. In the age of automation, that is usually "pretty well".
So your argument is solely a moral one. Jobs are mostly a first served problem or the result of privilege: education, network, etc.
No they aren't, the easiest way to get a job is to get really good at something.
Doing that I could be useful to thousands, maybe even millions of people. As opposed to, say, wasting the time of hundreds of people trying to sell them stupid magazines they don't need or want while leeching money off of the poor grandma who doesn't know how to say no.
Alternatively, I could spend the time to build something that somewhere down the line could become a useful product to share with the world, or a profitable business that could pay back all the tax money I used up (and more).
Doing a bullshit job 8 hours a day leaves me too exhausted to do anything particularly useful with the little free time I have.
If you want impact, and can write software, there's plenty of well-paid jobs for that in the US; Silicon Valley and elsewhere. That not only lets you contribute taxes instead of living off them, it also helps you be more productive, focused, and impactful.
Is teaching a bullshit job? Installing solar panels in people's roofs? Doing the accounting that keeps a hospital working? Cooking or waiting in a small restaurant where the firemen next door have lunch?
Waiting tables means you live on tips. It's not a job you can do for life.
To install solar panels you don't need more than a training course, it doesn't require more education than any factory job. Same for cooking.
> what drives that change
Congress I think
I ask because your position takes on very different implications depending on exactly what you believe. In my experience, most people who say they don't believe in morals actually seem to believe very strongly in them; they just don't believe that the morals of the majority should be imposed on others who don't share the same values. I don't necessarily want to assume that's your position, though.
I believe that if you set a good minimum standard, it will trickle up.
Also if you don't want riots in the streets, you should make sure the lower classes are living decently.
That's not morals, that political intelligence. Crowds with empty stomachs are a political nightmare.
You can argue that it's economically beneficial for the higher classes in Europe, or convenient for the politicians. But even if it's the case (which is anything but obvious), that doesn't change the historical origin of those policies.
What I was saying is that if you want peaceful streets, you have to care for the poor, if not things will get messy. To me things are not really peaceful in the ghettos. High welfare helps "taming" the problems poverty creates.
As a side note, recently there's been a drive to not normalize fascist slogans or ideas in mainstream politics. Among those, "arbeit macht frei" is a particularly offensive one, since it was written on the gates of Auschwitz.
Just saying. When someone quotes this kind of phrase to us, we should remind them where they got it from and refuse to treat it as normal.
>I'm unemployed and I really don't think I have any duties to work in fast food or to deliver pizza because I must contribute. If I decide I can live poor and be happy with welfare, I will. I think it's a great thing to be able to live a frugal life and still be healthy enough.
Good for you!
>I hear so many people yelling about moochers and parasites, it's becoming weird. Everybody wants everybody to behave like superman, yet nobody realizes you can't educate everyone to have enough qualified workers.
I don't think people want to acknowledge how much social capital goes into enabling us "supermen" who actually do work for high incomes. If all the roads get cracked and the trains break down, I'm going to be a less productive worker because I have a harder time getting to work.
Although the "Just saying" part (from the GP) irritates me. You're not "just saying," because if you were there would be no need to explain that to us. It's little more than an underscoring of the passive-aggressive intent of a statement.
That's why I used it
Are you banking on the tax payers never reaching that mindset as well? Because it kind of breaks down if that happens.
How an economy heavily based on excessive consumption is a good thing?
Just like planned obsolescence has its set of advantages, even if it is a despicable practice.
This kind of lazy discourse from someone who has authored a whole book on the topic under discussion is remarkable.
" When I see, for example, that you’re making millions by laundering drug-cartel money (HSBC), or pushing bad paper on mutual fund managers (AIG, Bear Stearns, Morgan Stanley, Citibank), or preying on low-income borrowers (Bank of America), or buying votes in Congress (all of the above) – just business as usual on Wall Street – while I’m barely making ends meet "
So I wouldn't call it lazy when he flat out listed what they are doing to get put in that gangster category.
Not just wall street doing unethical stuff so why pick on them and call them gangsters?
And as through your life you travel, Yes, as through your life you roam, You won't never see an outlaw Drive a family from their home."
-- Pretty Boy Floyd by Woody Guthrie
No, full employment alone won't solve the problems of inequality that the essay very capably outlines.
But full employment may be necessary anyway, because having the sense of being needed and being useful may be an important factor to many people's well-being. Full employment is really just another way of saying that everyone can get this sense of being needed/useful via employment.
Seriously. People that did those jobs HATED their jobs. Now a group of people have a job again that they hate. Surely we can find something that fulfills their desire to be helpful without a completely unnecessary and unfulfilling job.
So there were no workers, just a driver.
Because of the jobs issue, they went back to having two men that pick up the cans by hand. But because everyone had the new cans with all the extra hardware now the work was harder. It was the worst of both worlds until they issued everyone new regular trash cans a few years later.
It's going to take probably 100 years to get there, but frankly we have no choice. It's either get with the program or buy into some form of population control.
When a plumber gets satisfaction from a good day's work of fixing piping in people's houses, do they get their purpose in life / sense of being needed and useful (note: not the same thing!) from an authority figure? Hell no, unless you think clients are authority figures.
But they are getting this sense from their work.
Heck, even in standard office jobs, I doubt that too many people get their sense of being needed and useful from their bosses or other authority figures (if they get it at all - you don't have to tell me about bullshit jobs). They get this sense from coworkers, clients, or other aspects of the work itself. That's certainly my personal experience. We're social beings, not obedient worker drones.
And I don't know how to put that in a way that gets the point across, but I think a lot of techy types are actually quite arrogant and selfish when they dismiss full employment and think that a UBI would solve all problems.
I get it, most of us would happily work on random open source projects or whatever if we had sufficient UBI, and a lot of that work would be useful to many people. But we should be aware of how rare that is and how lucky that makes us.
Most people don't have that drive or that opportunity, but would still benefit from a social framework in which they are nudged towards doing useful things that they can take pride in and get rewards for (both monetary and psychological). It's like going to the gym: most people don't have the drive, but would ultimately benefit from the offer and a bit of nudging.
Full employment can offer such a social framework (if done right, of course), while a UBI can't (no matter how it is implemented). Who are you to deny this to other people just because they're different from you?
>But they are getting this sense from their work.
I guess I wouldn't say that self-employed professionals have a job. I think of it as a self-employed versus wage-labor distinction.
>Full employment can offer such a social framework (if done right, of course), while a UBI can't (no matter how it is implemented). Who are you to deny this to other people just because they're different from you?
This is, of course, where we actually disagree. I think that while a UBI is by no means a perfect solution to human worth or psychological needs, it's a much better solution than "full" employment to people's material needs, while many many alternatives remain besides employment for the psychological needs. It's a continuous tradeoff made under uncertainty, and we should talk about where we believe the tradeoffs are.
If that's really the best you can come up with, I think it's safe to say that UBI doesn't offer any solutions for human worth or psychological needs. (I also partially get it; solving material needs is easy compared to psychology.)
And it's funny, I never see UBI supporters propose actual solutions for those. It's always just hand-waving, like they are prepared to give lip-service to the issue, but they're not really interested in solving it. It's self-serving politics by an elite who already has all the frameworks for solving their own psychological needs, as long as the material ones are satisfied. At least you have to give the full employment/Job Guarantee folks credit for actually trying to come up with something.
For what it's worth, it's not like those things are in conflict anyway. UBI and full employment are complementary policies, they don't contradict each other.
I guess I don't give so much credit because I'm a weirdo who doesn't get a lot of his psychological self-worth from his work. Yes, work can be interesting and engaging sometimes. So can any number of other things in my life, none of which pay me wages.
I also don't think that assembly-line jobs ever actually provided for people's psychological needs. That's part of why the '60s and '70s had so much wildcat worker militancy: people found that while they were glad to have their material needs met, they had absolute psychological needs beyond what their jobs could ever meet. So to turn it around: I think that "jobs for everyone" is likewise the self-serving politics of an elite who already gain far more life-satisfaction from their professional work than the masses ever will from manufacturing or services.
>For what it's worth, it's not like those things are in conflict anyway. UBI and full employment are complementary policies, they don't contradict each other.
Very true, and we should probably support both.
Often, it can be the opposite. Many people would describe their daily tasks as useless or marginally useful for humanity, while finding meaning in unpaid volunteering.
And, when you experiment with a job guarantee program and turn it into a basic income scheme you can see why:
http://www.nakedcapitalism.com/2012/04/randy-wray-the-job-gu...
The increasing “feminization” of the program (caused in part by economic recovery that pulled most men out of the program and into the private sector) proved to be a political problem. Government officials adopted the attitude that the program was providing jobs to “economically inactive” women who should be at home instead of working. I won’t go into the details (in part because I am not sufficiently familiar with them) but officials created an alternative scheme by which the remaining men would be moved into an unemployment program and the women would be moved into welfare. These moves were voluntary, but higher pay in either unemployment or welfare was the attraction that helped to gut the Jefes program. One of my PhD students continued to study participants as the program was reduced—and found that women would rationally take the higher pay in welfare but continue to work in their jobs (without pay) because they found substantial benefits in the social networks they had created through work. They also wanted to contribute to their communities.
Somehow I doubt this story has permeated James Livingston's Brooklyn bubble though.
Yes, because the boring truth is that because people want jobs and we need them to do stuff.
The only reason we really have a "reserve army of the unemployed" is as an inefficient way of enforcing "labor market discipline" for private companies. That's why they lobby for austerity, etc.
Self-worth through jobs is an important point.
And an interesting evaluation from The Economist (http://www.economist.com/blogs/freeexchange/2013/08/labour-m...)
The Economist does miss the point a bit by concentrating on a comparison between industrial jobs from a century ago and clerical jobs today. The author discards any notion that workers are intelligent enough to be affected by the true meaning and value to society their job creates, instead comparing physical pain from a industrial age factory job to the tedium of killing time on facebook at a cushy office job.
That's a cheap hack reframing in order to make a point in my opinion, either a sign of dishonesty or just being completely out of touch. Graeber is very clear that the meaninglessness of these tasks is important.
All of them were formerly professionals, now jobless and moneyless. So they have to work directly for themselves and barter products and services. It will evolve into a bazaar of companies and professionals, offering products and services to each other, maybe even with its own currency.
We might not have money but we have work power and are not stupid, and are motivated to find a solution. If nobody will hire you or give you free stuff, what are you going to do? You got to work for yourself, like it's always been since there are people on this planet. But this time, after you earn some money, you can buy your own robot, or get your friends with a small fab to make one for you.
So, coming automation, people will migrate from employment into self employment. By relying on each other, maybe with some help from the government as well, people can make it.
Corollary: Anything that is automated is not economically sensible for a human to do.
- Freelancing and consulting gigs have huge overhead.
- Uber drivers (for now) own the car but don't make most of the money. And they will be made redundant by self driving cars.
- Medical services have the most overhead and require years of expensive training.
- Making artisanal furniture might feed one or two person per town, but that's no way to feed a family.
- Farming is also getting automated in vertical greenhouses.
If you have health problem, or cannot make something with your hands or your brain _that people are willing to exchange enough money for_, should you be left out to die?
Yes, but when you can't pay the wonderful automated hospital its fees, you hire the local unemployed doctor (replaced by an automatic diagnostic system) and in lieu of payment, you go and fix his roof.
My point is that there are going to be lots of unemployed people and they are going to work for themselves because they need to survive, because they got no money or jobs. Automation will make it cheaper for corporations to manufacture things, but people are not going to buy their products because they don't have hard money. They only have barter money. And companies don't take that as payment.
The alternative, UBI, requires that companies realize they actually want UBI. UBI would be like a pot of gold they can sink their hands into. People would buy shit and they would make profits. Of course, UBI comes out of their pockets, but hopefully they make more profit than the competition and win. Also, hopefully, with automation there is enough increase in productivity to cover UBI and some profits for the industries. If UBI doesn't come, they are busted. Rich people can't satiate economy's demand for customers. They can only eat so much food, and sleep on so much bed, and use so much car. The larger the UBI, the more money on the table each year.
But for people it's going to be great to become more self reliant, even acquire automation and support themselves by directly benefiting. Automation is going to become much cheaper and an open-source community of makers is going to appear. We won't need to buy much except generic computers and raw materials. Or the government will subsidize buying commercial automation for self reliance, as a cheaper alternative to UBI. Automated farms, 3d printers and solar panels are going to empower people.
One hope is that with sufficient automation and competition, the marginal cost on providing a diagnostic or other services might fall to close enough to 0 to be free. The value provided to society would be very high. The profits might be astronomical?
I agree that UBI or something like it is a necessity, but I'd rather live in a Star Trek "all needs provided for without currency exchange or social stigma" society rather than 5 trillionnaire families and 9 billions peoples surviving/mooching on UBI.
Increased automation has a high chance to be very expensive, in the "printer cartridge" kind of way. Cheap "robot". Expensive maintenance and consumables.
I wish you're right, and that corporations will not go full "Bacigalupi" and patent everything from the plant we are allowed to grow to the brand of electrons we're allowed to put in our robots.
tl;dr The unemployment rate is falling because people are losing their benefits and falling out of the labor force, and no longer being counted as unemployed.
[1] http://data.bls.gov/timeseries/LNS11300000
(editted for grammar)
This started in 2000 coincident with the downturn.
The big drop in 2008 was mostly the crash.
What he's saying is that no one needs to do anything of value anymore. You know, like the guy who built the house you live in, chopped down the trees it was built with, managed the project to build it, inspected the building to make sure it was put together correctly, etc...
Hundreds of people had jobs to make the shelter you value. They want something in exchange for that value. These pseudo intellectuals can't seem to understand this basic underpinning of civilization.
The exchange of value is as old as time and nothing is going to change that for a long time.
Meanwhile, actual citizens have moved on; right or wrong they've empowered people that they think can make more "jerbs," so the ladder removal operation is on hold for the time being.
> What he's saying is that no one needs to do anything of value anymore.
Can you point to the particular sentence where this is stated? Didn't think so.
The article I read said that the majority of jobs aren't paid at a level appropriate to their value, and that without the (rather limited US) welfare programs to support them, the bulk of employees would be below the poverty line, and with the impending automation of almost 50% of available jobs it'll be those bottom-line jobs that go.
The article then tells us that we'll need to redefine our attitudes to both income and work, but nowhere can I find the statement that "no one needs to do anything of value anymore." It tells us that almost half of the population already don't do anything of sufficient value, and many of those jobs are going to go away.
http://www.washingtonsblog.com/2015/10/goodbye-middle-class-...
I feel like that's pretty clear.
You're right though, it does contradict my "ideology". I'm willing to be enlightened though but there were no rational arguments in this article to sway me.
Maybe use office buildings or food delivery startups for your examples.
The author referred to some interesting concepts of lack of work that we can draw conclusions from: the Aristocrat era (on which there was a decay of this class, for excess of leisure IMO)
We still need to have a purpose in life, we should help people find more about their purpose and help them achieve it. UBIs can and should be complemented with bonuses for achievements. This way we can take back the work hard and get good results kind of balance. Difference will be: you can choose whatever you do, it doesn't need to give money directly (just imagine what that could do for scientific research)
The obvious leak point - who would determine what was "worthy" work? If someone said "my project right now is to watch all of The Wire", would that be OK? Would it differ if it was "all of CSI Miami"? What about if it was "All of MIT's lectures on machine learning"?
What I meant with projects is something tangible. What you are talking about is education? should that count? if those people are being educated or want to learn something, shouldn't they be able to still have an UBI while doing it?
My answer to that is:
20hours/week of communal work - they would do that work 20 hours/week and still have time to learn whatever they want..
Also, a centralized system could give more rewards to scientific advancements.
The system that we have now seems to be:
If other people want what you are creating, they'll pay for it, so that's how you define what it's worth to have.
However, the system that we have is flawed in many ways, because the closer to the selling point and to the money that you are, the more reward you make. Which makes sense, but undermines by underpaying some very important jobs/tasks that are the backbone of a lot of things, to name a few:
Scientific research Investigative journalism
OK, further question - what if they want to watch The Wire and write a series critique for public consumption as their communal work? That's definitely something tangible.
Does that answer change if they're:
1) A complete unknown with a blog 2) Have published work but aren't very well known 3) Are a famous media writer with thousands of fans asking for this critique? 4) A well-known academic in the field?
If the answer to all of the above is "no", is that also true of other academic work? What about journalism? What about artistic work?
Having worked in the arts for years, the issue with any sort of "we want to pay people to do Good Works" plan is that eventually you have to have someone define what Good Works are, and more importantly, aren't.
I do not envy the many people on grants councils around the world trying to say "well, this thing is Art, but this other very similar thing is not."
To get an UBI, you would need to do 20hrs work/week. Every other activity would be as is today. i.e. if you have and are able to reach a good crowd, you'll make money with sponsorships and ad revenue.. but you need a big/good enough crowd for that to happen.. and that takes time and effort.. you would have more time for that..
In regards to science, I'm of the opinion that any scientific study, even the ones that only find dead ends, is worthwhile as it advances humanity's knowledge
For the communal 20hrs/week I would say something that is helpful in different sectors. You could choose:
Fix stuff; Clean; Social services; etc..
That's the current world we live in.
It would have been impossible to have iPhones or the likes without scientific advancement. Yet, the scientific community reaped 0 benefits and got 0% of share from Apple's profit.. and even tax wise, which could be a way to subsidize scientific grants from the government, we both know that they dodge those and lobby with success for them to not pay them.
So, there are problems with the way of our point system.
Another case:
Investigative journalism. The journalists or even the companies that pay the salaries to the journalists that make those hard strives reap almost 0 benefits, and other outlets just pickup the news and get all of the benefits.. yet these are crucial for change/improvement and progress in our institutions and way of life (think the catholic church scandal, the contras and crack scandal, etc)
Also you can pay for investigative journalism and scientific research.
> tax wise, which could be a way to subsidize scientific grants from the government, we both know that they dodge those and lobby with success for them to not pay them.
The case with EU and Apple hasn't been settled yet.
Why stop there though? How come some people hoard and/or inherit millions or billions?
Has one Bill Gates really done the work of 40,000 people worth a million each?
Is there even enough wealth to go around? If the total wealth is $233 trillion, and there are 7 billion people, each person gets $33286. If we were to just wealth redistribute, does that actually solve the problem under discussion? I don't know whether it does. For a huge amount of earth's population it's the value of more than a lifetime of work.
And could it be true that there's a big fat bubble everywhere else where that same amount of money doesn't even get you by for a year, or in the richest cities in the U.S. not even 6 months? What happens if the veil of ignorance applied to resource allocation were simply reset, globally?
Probably a lot of fraud, exploitation, and murder, to take that share from others to enrich a few. I think we like to pretend we're civilized. The language we use now isn't even describing the problem fairly or accurately.
There is a huge amount of work to be done. More than enough for everybody.
Can you imagine if they spent the next 4 years spending some money to fix up the cities to make them attractive to young people? It might bring new investment, jobs and life to the area.
No, it doesn't. It requires initiative and investment, but there's no reason why those things have to come from the government.
> Many of the depressed areas keep voting for politicians who are convinced government doesn't work and they are determined to prove it.
Many other depressed areas keep voting for politicians who are convinced government can work--but they are unable to prove it.
Because the market that is supposed to match workers with jobs is highly inefficient. There are a number of possible causes of this, but I think a major one is regulation, which greatly increases the cost of hiring a worker. Any market with large transaction costs is going to be inefficient. That's one of those "economics 101" things that many people tend to forget.
- High implicit labour prices. When you add up all the required costs to hire somebody (minimum wage, healthcare costs, payroll taxes, etc.) it's no surprise that there's going to be some portion of the population which can find no work at that price.
- Unnaturally high costs in the most productive areas. Cities with lots of jobs will naturally have high costs, but a lot of regulations, like zoning law and building codes essentially put a high minimum price on living in particular places. This makes it very hard for people to move to the work.
- Licensing and accreditation. There's tons of jobs (many of them service-sector jobs) that require a license, lots of permits, and often particular kinds of schooling to be able to legally do them.
But on your point about implicit labour prices I have to disagree. At least with the costs listed. The implicit labor costs increase the de facto minimum wage. But payroll taxes are 7.5%, federal minimum wage is currently $7.25/hr, fine for not covering healthcare costs ends up being ~ 1$ an hour. So we end up with a de facto minimum wage of $8.80/hr.
This means that it only prevents jobs that produce less that ~$9/hr of value. Which I don't think many people would classify as a "good" job.
But it also has all of the effects both positive and negative of a minimum wage. The negatives are that any potential jobs that generate less than $8.80/hr wouldn't be created, but it also brings the positives which are that any employees that generate more than $8.80/hr an value but who due to negotiating power would have made less get a raise.
- Various laws and regulations that micromanage the hiring process, e.g., forcing employers to show evidence that it is "fair".
- Various laws and regulations that make it difficult to fire a worker even if they are genuinely unproductive.
I'd definitely like to know more about this. The only big issue I see with this is not allowing IQ tests to be used.
- Various laws and regulations that make it difficult to fire a worker even if they are genuinely unproductive.
I live in an at will state(Texas), and it doesn't seem like our job market is that much better than states with more onerous firing restrictions. Are the restrictions at the Federal level?
Some people rebelled and destroyed these machines who "stole their jobs". Some thinkers thought it would be the end of work.
There was a long and difficult transition period, but in the end, they were wrong. People moved to cities and did different jobs. New jobs.
It will be the same over and over again.
How do you know? You don't know the needs of tomorrow.
All this free time will create demand for new jobs: coaches, therapist, teachers, etc. Also think about micro factories and bespoke production on demand. This will need people.
In terms of magnitude of displacement, I don't think what we are seeing now, or anticipate seeing in the next decade is of a different kind than what we saw with the mechanization of agriculture. What concerns me is:
1) The rate at which these disruptions are occurring, and
2) The ability for displaced labor to find other opportunities in the economy.
The shift from agriculture to manufacturing took place over decades and didn't require significant retraining. The shifts we are seeing now cut across a wide swath of 'unskilled' labor which is appears to be in a general decline. (I recommend checking out EconTalk episodes with David Autor and Erik Hurst: https://itunes.apple.com/us/podcast/econtalk/id135066958?mt=...)What will they do then? My biggest fear is that most will simply fall into consumerist lullaby mode. I have no doubt big corporations will find a way to make non-labour-bound income work to their advantage.
Rendering healthcare possible for everybody and -thing, up to planet scale, is certainly an enticing aspect of this labour revolution (these activities need humans and human intelligence, which are currently all locked up and undervalued in traditional jobs).
It gives us time to think. For the first time in history, an entire civilization gets the opportunity to work on its intellect. See my other comment (https://news.ycombinator.com/item?id=13042772) in this thread.
That all these jobs don't pay just shows how ill-equipped our current system is to handle free-thinking people, and freedom as a concept.
A little-discussed solution to this problem is one I would like to see tried, distributism:
https://en.wikipedia.org/wiki/Distributism
A book I am currently reading (and enjoying) on it is:
https://www.amazon.com/Toward-Truly-Free-Market-Distributist...
The real question is "when?". The costs of distributed manufacturing currently make distributionism less-than-viable (see: communes), but those costs decrease as technology advances, while the rents imposed by centralization do not, and perhaps even increase. There will be a crossing point.
Services are the sticky bit. Goods alone can't replace doctors, lawyers, and the like, at least not yet. On the timescale of the "crossing point" I'm less sure. Fortunately, they might not have to -- anything we can do to decrease the urgency of the "mandate to make money" serves as a relief valve for the oversupply of labor and decreases the toxicity of the market, even if it doesn't eliminate it.
Nonsense. Our abundance is increased by specialization not a lack of it. Specialization and trade allow for higher-order goods to be used as inputs to produce lower-order goods. Farming doesn't just require a tractor and some land. You need fuel to run the tractor, other industries to come together to make the tractor, a merchant to purchase the tractor from, and on and on.
It does not follow that owning more things related to a trade will produce more things. The opposite is the case, it's cheaper for the farmer to buy the tractor than produce tractors himself.
"Nonsense" is an extreme overstatement, there are nuances to both arguments.
"This is economics 101" is exactly the problem: we're dealing with an economic system that isn't working. Questioning economics 101 is precisely what's needed, and I'd argue that while your arguments are sound, they've been treated as absolutes, which they're not.
A farmer needs to buy their tractor from a tractor manufacturer and fuel it from a fuel extractor/generator, but not everyone need be involved in this cycle and not every step need be specialised in a completely unary manner. Also, the emphasis on individual economic efficiency over efficiency of communal benefit is important: if a farmer can produce less - but sufficient - food, for less - but sufficient - material profit, while not producing negative impacts for others elsewhere in the economic system at large, that's a more "efficient" overall system.
The most important word in the excerpt you quoted is "most"
That runs entirely counter to human nature. If you can solve that you may have something workable, but without it "Nonsense" is as good a word as any.
b) Is it really human nature?
This is what social norms are for. Slavery is for now still mostly frowned upon, and in some circles even racism is. Even though using either usually results in huge personnal gains for some.
Only in the places most removed from these incentives do we see slavery. Look at North Korea, much of the population can be seen as slaves (The subsistence farmers for example). The costs of keeping the slaves can be thought of as the cost of running their propaganda machine, arming their military, controlling the border and the loss in relations with the rest of the world. As long the leaders fail to gain a sense of compassion then the only thing that matters to them is their slaves make more than they cost.
Its callous.
Human trafficking is still organized, global, and wildly profitable. There are people in slavery near you, no matter where you are. It's real.
You may also want to look at the few stories of "domestic workers" and "maid" abuse that make the headlines from time to time in your own country (works in any country with a free press).
As said in another comment, slavery is alive and well. It is only frowned upon.
bjelkeman-again has a fair point re: northern Europe; some very good examples to the contrary.
Not so. Tribal societies inherently function on everyone in the tribe working for the overall good rather than their individual gain. Socially, this is how we function by default - people will make sacrifices, extend loans, give gifts, and generally help out those close to them (family, friends, tribe members) without an expectation of something in return.
In our modern world it is often going to be the case that you won't deal with the same people again, or the transaction is completed completely impersonally.
This makes as much sense as saying "You say that my magical spacecraft won't work due to the laws of physics, but physics is exactly the problem: We can't travel to Alpha Centauri yet. Questioning the laws of physics is precisely what's needed...".
You don't get to ignore facts simply because they're inconvenient.
Many economists are questioning their 101s lately. Look closely in the various journals and you'll see evidence of that, both explicitly and implicitly.
Marx contributed massively to sociology. He contributed nothing of note to economics that's really relevant to this day (not that his effort was not commendable). Sticking to orthodox marxist economics in 2016 is more dogma than science.
Markets aren't forces of nature. That's propaganda.
The side effects must be investigated because that's largely where we are in the public discourse right now. We're in a big adjustment period. We're learning about consequences; good and bad.
Reminds me of Keyne's famous long-run quote.
They did? How so?
[1] Which they, in actual fact, very seldom do.
I've studied economics at the college level. I follow economics news and am not aware of economists questioning 101 level principles. Many of these are relatively simple and intuitively obvious ones (once you wrap your head around them), much like 101 level maths.
Consequently I am inclined to disbelieve the claim that economists are questioning econ 101 principles, unless you can provide some examples. More than one example would be most convincing since you're claiming this is a general trend. Journal article links would be appreciated.
It is not so much about questioning economics 101 principles as much as questioning their validity in the various economies. Taking the example of comparative advantage and more general trade theory, there are well known, respected economists (e.g. D. Rodrik) who have argued against the scope of their validity.
There also seems to be a debate about how 101 is taught in schools, see e.g. [1].
[1] https://www.washingtonpost.com/posteverything/wp/2016/05/13/...
I want to push back on the idea that economics is a way to divinate the truth of how to generate and share happiness. It's a piece of the puzzle, but a very small one.
The is broadly true of Macro Economics. This might even be impossible as a science, since the object of study (world economy and markets) is aware of its findings, and adapts around them.
Micro Economics, or "Price Theory" as it maybe should be called, is OTOH a very powerful science that gives deep and counter intuitive insights into how the world works.
It is also largely ignore by decision makers :)
Seriously, though, your econ mind is on the same track as mine. "Economics" is a pretty broad brush, and it's difficult engaging in meaningful discussion.
You make a great point: The "economic system" is conscious and reacts/adapts to internal and external changes, which changes the rules, and the meta rules, and the meta meta meta....
My impression is that "behavioral" economics is a promising field that can help explain some unusual phenomena. But it doesn't change the solid core of the science.
I think it gets talked about like that sometimes by people who don't like the implications of the established science. Much like what happens with Climate Change and Evolution when any seemingly contradictory study appears.
If we're talking about supply and demand, price elasticity, and things like that, I can't think of any loopholes. Knowing how these things work only makes people make more informed decisions.
That is pure capitalism at play as it is a free market without government regulations.
Similarly some drugs that are priced at crazy multiples of real cost to produce it(including RnD and healthy profit) by the likes of martin shkreli.
So its basically how much the individuals in an economy values money. When the seller quotes high and I as a buyer has truck load of money, I wouldn't even bother to bargain. When I don't have cash, I try to bargain it to the bottom levels and sellers would probably not even be able to cover their cost.
Pricing that varies over the day in ecommerce websites is another example. Time during which people are more likely to rush into buying, things are priced high.
Your example of the fish markets is just a good example of the fact that people have varying marginal utilities of money. Of course people try to get the highest price they can get - taking into account, of course, the time they'll be receiving the money. Obviously people will see if they can raise the price, but they're still in competition with other sellers; the price cannot be raised indefinitely. And it's not always clear whether other factors have changed - things like fish supply and catching are notoriously dependent on the weather, demand for fish varies seasonally and with changing fashions; it's a perishable good with not-super-fungible markets - maybe the prices know something about fish that you don't.
You give the example of super-high pricing for drugs such as the Daraprim case with Martin Shkreli. Note that this market is overseen and hugely, hugely regulated by the FDA, which imposes very lengthy and costly approval processes on drugs (even different manufacturers of off-patent "generics".) More generally, these drugs are on-patent - both of these situations are a de-facto monopoly that grants exactly the kind of economic rents that microeconomics predicts.
Ecommerce pricing also doesn't disprove anything. You could, for example, explain this by other factors, such as that ecommerce warehouses and logistics chains are capacity-limited, so "surge pricing" would make good sense to smooth demand peaks. But that's besides the point, really, because microeconomics would absolutely predict that if people, on average, have a preference for shopping at a particular time, then a seller may attempt to capture this preference in the price. This isn't done in brick-and-mortar retail, since changing the prices hourly would be a huge hassle. But in ecommerce, it's easy, so prices modulate with demand. And stores have always changed their prices over time, it's just that the internet makes it easy to go for a smaller granularity.
(editted for clarity, grammar and spelling)
"Economists think homo economicus is literally true" is a ludicrous strawman.
That said, as other commenters have pointed it, it is a little rich comparing economics to physics
Can you explain this statement further? North Korea and Venezuela's economic systems aren't working. America and most of Europe simply don't allow everyone to consume as much as they would prefer to consume.
It sounds like you mean "isn't working" in the sense of "an iPhone 5 isn't working as well as an iPhone 7", not "my car isn't working so I can't get to work."
This is a recurring cycle, which has happened many times throughout history. Pretty much every time it ends with the elites killed, their wealth stolen, civilization collapsed or set back significantly, and a new cycle begins. I don't understand why the elites never see this coming, or take adequate steps to prevent it. All they have to do is be somewhat less greedy.
Average wealth has increased in America over the last 50 years, and real family income has been rising overall since the 1950s. Wealth concentration today is lower than it was in the 1930s. Poverty has fallen since the 1960s. I excerpted these facts from (1). While it is also true that income and wealth inequality has been rising during this time as well, the fact of the rich being well off doesn't necessarily hurt the non-rich, especially if both groups are becoming richer over time, which the data shows is happening in the US.
People are becoming better off over time. Why is our economic system failing us?
Note as well that the average person today has a better quality of life than medieval kings did. Near the official government poverty level, most Americans live quite comfortably (2), and have amenities such as housing, air conditioning, cable TV, mobile phones, etc.
> government surveys show that most of the persons whom the government defines as “in poverty” are not poor in any ordinary sense of the term. The overwhelming majority of the poor have air conditioning, cable TV, and a host of other modern amenities. They are well housed, have an adequate and reasonably steady supply of food, and have met their other basic needs, including medical care. (2)
(1) http://www.cbpp.org/research/poverty-and-inequality/a-guide-...
(2) http://www.heritage.org/research/reports/2011/07/what-is-pov...
Shut up poor people, you have sanitation and refrigeration!
When people who make arguments like this are dragged from their beds kicking and screaming they will only have their own hubris to blame.
Edit: Those who down vote forget that we once had an elite ruling class in this country.
"what country before ever existed a century & half without a rebellion? & what country can preserve it’s liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? let them take arms. the remedy is to set them right as to facts, pardon & pacify them. what signify a few lives lost in a century or two? the tree of liberty must be refreshed from time to time with the blood of patriots & tyrants. it is it’s natural manure."
-Thomas Jefferson
Your comparison of wealth concentration to the 1930s is also disingenuous: wealth concentration spiked massively toward the end of the 1920s, it was far lower than now before and after that. That particular point in history isn't a particularly ambitious bar to set.
Though if you're linking heritage.org while keeping a straight face, I fear this may fall on deaf ears...
nice bait
That's debatable. Human beings have a pretty significant natural tendency to look at the relative well-being rather than their absolute well-being. It makes sense, given that for any social animal, relative well-being aka ranking in the group hierarchy, is essential.
Some people are more affected by this and other less, but even all else equal, increased inequality can reduce people's quality of life.
Add to that the effect of mass media which allows an easy comparison to some of the most wealthy and powerful people in society, and you have a recipe for widespread unhappiness.
Average wealth doesn't matter. Relative wealth does. The reason is simple: wealth is a proxy for political power.
Let's say Bob had 10 dubloons yesterday and Alex had 20, and today Bob has 20 and Alex has 100. Sure, Bob is twice as wealthy as he was, but Alex is five times as wealthy and also five times wealthier than Bob (as opposed to twice).
Now replace "wealth" in the above paragraph with "power" and you'll see the issue.
Wealth is about the total amount and quality of goods and services you consume.
Your house is of much higher quality than the houses of the 1950s. Just because the mansions are even bigger and better, This doesn't take away the quality of life improvement of you owning a better house or car or your ability to be cured of diseases that were incurable in 1950.
Before I lived here I was in a single-family house, also built in the 30's, also very sturdy. I've seen other houses being built nearby, McMansion style. They look nice (new, anyway) but they use the same shoddy materials and construction techniques.
Prior to that, I lived in a new condo. I bought it while it was still under construction. (Big mistake.) The builder neglected a few details, like flashing on all of the windows. When it rained, water poured in around my window casings. People on the top floor had their whole ceilings cave in. I managed to get out of there, but a year or two later after the lawsuits the entire brick exterior had to be ripped down to fix the windows, then put back up.
So I disagree that today's houses are "much higher quality" than the houses of the 1950s. An older house, with modern upgrades, is more likely to be high quality than a new house with the same features.
That's all besides the point, because without wealth, without those gold coins and green pieces of paper, you can't afford the nice house, or better car, or the healthcare. Without wealth (in all senses) you don't have financial security, and without financial security you're forced to make decisions about how you use your limited resources. You buy lower-quality goods, you skimp on maintenance, you don't upgrade things, you hold off on preventative care until you need emergency care. Your quality of life is lower, despite having (potential) access to much better things than you might have had in the past.
That doesn't means that we should set by and let modern kings steal most of our economic surplus.
And American wealth has grown at the expense of creating enemies who are in a growing position to exact retribution.
In this case I'd argue your comparisons are apparently not relevant for a lot of people - or else, if everything is so wonderful, how do you explain trump?
Or alternatively, implement something to stop the "elites killed, their wealth stolen [etc]" bit.
Completely co-incidentally :), technology to monitor/influence large numbers of people seems to be happening, and research/development/manufacturing of automated weaponry for the er... "self defence" of said elites seems to be on the agenda.
Gee, that sounds like it'll end well doesn't it. :(
In fact you can plant seeds with a stick and skip the critters.
Similarly, if a tractor can prevent Joe from working a miserable low-skill job in a world where the supply of labor dramatically exceeds demand, it's a good investment for Joe. Even if it's "morally" just as redundant as the R&D dollars, it serves a concrete purpose with concrete benefits.
Of course, Joe would have to buy a great deal more than a tractor to realize this dream, not to mention that the fabled "tractor" which could actually free Joe from working harder than a minimum wage job doesn't exist yet, and probably bears little resemblance to the "car for farming" we've been talking about. Currently the cost of centralized production (the rent-seeking it enables) is small compared to the benefits. I don't think that's in question. I do think it's a function of manufacturing technology, though, and I don't think the scales are destined to forever tip the way they do now.
This line of reasoning is amusingly similar to NIH-syndrome.
I was about to say the board was probably empty, but turns out it's not that simple http://3.bp.blogspot.com/-shGknjKjPWE/TzJGOwQLVcI/AAAAAAAAAE...
Old phones weren't really resistant; but less sensitive. My Samsung Wave 723 took a plunge once, water got inside but almost didn't harm it (almost; something SMTc wasn't properly functioning after 1h of use). Kinda like ThinkPads, they can leak water outside a bit, but they're not water tight sealed.
Uselessly duplicated efforts due to secrecy are the problem patents were supposed to solve, btw.
Yes, self reliance (and sustainability) is more emphasized than it is in modern liberal western economics, but that doesn't denigrate the concept of specialization, it just elevates other aspects of political economy as well.
It's a set of ideas worth approaching with an open mind, in my opinion. John Medaille's books is very well written, even if you don't agree with much of it.
Among simple and easy slogans for solving our problems, "break them all up" is actually a pretty good one.
Agree with this. And, as jobs are replaced by computers/automation, there will be other jobs created through specialization; however those new jobs will be new niches that will require people to learn new skills or be trained, and unless the money is there for that retraining, then you have a risk of years of unemployment.
Basically it's lamenting the lack of small businesses. That's not really wrong either. Diversity in business ownership might not be maximally "efficient" in certain regards but I think most folks would prefer that there isn't just one farming conglomerate, one nationwide plumbing service, etc.
I don't see the problem with a person buying a house to live in or a car to drive.
I don't see a problem with a programmer buying a computer to start a software business instead of renting it.
So why should plumbers be employed by others who own the tools and the brand? Why should farmers not attempt to own their land and tools?
Why are people here so down on "normal" people owning small businesses but startups are totally great?
Most Ted-presenters can be characterized as people trying to become thought-leaders. Not sure if it is the case here.
The Youtube comments enhance the experience.
It's just another form of utopian idealism.
In my own thinking I've been leaning towards representing the commons, with some institution, as the sole owner of property, aiming for a good distribution by renting instead. I see some similarities of sentiment.
Perhaps even the same thought taken to an extreme?
The distribution coming from two aspects. The income form rent is itself distributed evenly constituting a basic income for all. Some form of auctioning should ensure that the rent represents the current value, it also ensures the resource being allocated to the highest bidder (the one capable of providing the highest value use for the resource). Since resources must be rented also avoiding the feedback loops that encourage hoarding of capital just for rent extraction.
Thoughts in that direction: https://en.wikipedia.org/wiki/Georgism https://en.wikipedia.org/wiki/Geolibertarianism
That said, the central notion of Distributism is property ownership, and that it was one of the philosophy's of the founding fathers for the US that property ownership, and property ownership rights, were fundamental to preserving the independence of the individual. (here is an article attributed to Madison [http://www.vindicatingthefounders.com/library/madison-proper...] but this topic comes up often in the Federalist Papers)
The challenge of course is that most of this thinking was done in the 'goods' economy and not in the 'information' economy. Using distributism to illustrate a topic that is often robustly debated here, consider the computer programmer who writes a program on his computer. The fruit of his property (the program) is just as much his property in the founding father's view as is the corn from a farmer's field. And yet this "property of the mind" or intellectual property is often criticized as being a fiction created in order to support rent seeking practices. The for argument starts from the notion of property, the against argument starts from the notion that information has no intrinsic value.
Turning this around yet a third way, and why I believe that Dr. Livingston is incorrect in his conclusions, when you invalidate or work around legal restrictions on profiting from ones property (as AirBnB and Uber have done), you see a rapid uptick in GDP from works using their property for additional income.
While I find Livingston's observations compelling, my interpretation is more along with Piketty's in that the regulation of labor in favor of structures which are more rent seeking creates artificial barriers to entry. And work ethic or not, most people work, it seems, in order to trade their skills for a currency that lets them trade back for other needs where they lack the skill or the time to procure.
Either way, its a complex topic and if you're really interested in the topic spend some time on Google's newspaper archives (https://news.google.com/newspapers) and browse stories written during the great depression about how the world was doomed and people would never work again because of the permanent displacement of labor.
That's interesting that Chesterton was an advocate of distributism. I've read a couple of his books, but but I wasn't aware of his political/social views.
distributism > communism
altright > fascism
To create a distributive economy: taxing the wealth, and have strong anti-trust law, and strong individual rights (but not "Koch/Soros" style individual writes to extreme amounts of speech rights in the form of lobbying dollars).
America's greatest success has come from its distributive policies. Sadly, we are moving away from those.
Basic income is economically unsustainable.
Some people can just lift more stuff than others, or think about numbers faster or whatever happens to need to be done and their labor is more valuable because it's more efficient. Therefore inequality.
You are right that there are difference built-in to humanity, but we have already overcome those with fairly common technology already. Now inequality is more about who your parents were instead of where you are born or other purely physical problems.
We can ship drinking water to anyplace on the planet. We just aren't incentivized to do so. The person leading a team building the roads that will support that effort could be a wheelchair bound parapalegic.
Our systems don't need to be perfect they just need to be better than they are now.
You make a great point here, and one I hope you continue to push for. Statements like Why must inequality be forever? will obscure this point as it doesn't include the nuance of "not perfect, just better". You will always find people who will argue that "Why must inequality be forever" is naïve at best, needlessly preventing you from finding solutions you might agree on.
The result is that Americans are just broadly doing worse, because our social system is irrational.
The issue at stake, is that unless you also engineer them to be similar in every aspect (looks, intelligence, physical capability), there will be differences, and those differences will enable a new hierarchy, with people who have more, and others who have less, thus recreating a unequal base situation.
You don't get to solve the problem by making every human's base situation identical, you solve it by making the inequality device and the means to use it available to everybody.
So what you're really saying is that it's not possible to guarantee any minimum level of living at all, at least not in a way that's economically sustainable. Conversely this would imply that a functioning economy requires some people to fail to reach any standard of living whatsoever (basically they die from lack of food, housing, medical care, etc.).
So sure, any level of basic income might be economically unsustainable, but if so then a functioning economy seems rather overrated.
But won't raising taxes on corporate income drive corporation to other jurisdiction? So employment in that company then won't just slowly trail off, but will look like a cliff, dropping to 0.
So isn't that idea ignoring the fact that companies don't have to stick into one place and so we arbitrarily tax them and then provide basic income to everyone in that community?
It goes the other way as well. In some places like West Virginia they've bent backward to accommodate coal mines, easing EPA regulation, destroying the environment and so on. Just to keep companies around. It is like a bad abusive relationship.
Other states for example know the game so they would court and offer incentive for companies to move to their state. I've seen that happen and it was painful for the original community to lose all those jobs.
I agree that we need something like basic income and the accounting is not the only problem, the social and moral aspect is a just as big.
The pessimist in me says we couldn't even meaningfully have a decent health insurance system like other civilized countries. We are a long way from any kind of distributism.
It is good there is talk and discussion about this. The ideological re-framing of this might have to be done very carefully.
One quick example I can think off the top of my head is how in Alaska there was redistribution of income from natural resources. People there probably don't think in terms of "socialism" or "handouts". Well at least the people I know there didn't a few years ago...
Wonder if basic income can be advocated in those terms - "You deserve this because we've created the automation / robots to work for all of us..." or "We want to free people's time so they can volunteer and help their own communities...". Some will play video games and consume drugs perhaps all day, some will decide maybe they want to visit some lonely elderly person in a nursing home or help in the hospital or soup kitchen some more.
1) how do you get people to accept the existence of basic income without perceiving the beneficiaries as moochers.
2) what do people on basic do?
Right now your example of people visiting the elderly is in some place paid work but can also be performed by volunteer. However volunteers should be vetted.
My guess is that when everybody is on basic, you can earn "social credits" for volunteering. But should that grant you access to more resources, or should that be like "Achievements" in video games? And how do you avoid turning that into the Black Mirror episode "15 millions Merits".
But even "social credit" cannot prevent the paid workers to look down on the moochers on basic.
How do we get to the star trek society utopia...?
So replace "social credits" in your line of thinking by money, and you've basically arrived at the idea of a Job Guarantee. And somebody who works for their money is no longer a moocher, so...
These are highly valuable services provided to society that are not rewarded in either status or the current social credits.
According to society's value system, as reflected by market pricing, I believe the answer is generally yes, the CEO is valued more.
The CEO is valued more because their work affects the company they lead as a whole and the work of many other people at the company - such as by determining what to work on, what initiatives to invest in strategically, or by obtaining funding for the company from investors. Poor decisions by the CEO can cause the entire company to fail; good decisions can create 100x as many jobs at the company, and increase its value by 100x.
It is more difficult for people to grasp the value of CEOs because their effect is spread out over a lot of people and abstract concepts like company success. It is easier to grasp the value of a nanny who spends time with your kids. But the fact that the nanny's work is much more concrete and obvious does not mean that it's more valuable. Consider: how much will you personally spend on a nanny? Would you spend 30-50% of your income on a fantastic nanny (the way that many people will spend that amount buying a house?) Most people don't value a nanny that much.
For a comparison, think about the effect that a good or bad president will have on the entire US. They can make a tremendous difference to the lives of hundreds of millions of people. A good CEO can do the same for their company, and all of their workers and investors. A bad CEO can do the opposite, and run the company into the ground.
Nannys and CEOs operate at entirely different scales. A CEO can destroy billions in value, or create billions in value. This is why companies and their boards and investors value good CEOs highly and pay them well. They want the best possible person for the job, and the best people demand high compensation.
There are also factors of supply and demand to consider. Most adult humans are intrinsically equipped to be nannies - to care for children. We're evolved to do it. No specific qualifications are necessary beyond not being a shitty or unreliable person. By comparison, not many people are equipped to be an effective CEO of a large, medium, or even small company. Thus, nannies earn less because there is a large supply of people who can act as nannies (almost the entire adult population), and a substantially smaller supply of effective CEOs. They need intelligence, drive, education, charisma, leadership capability, experience, vision, and other qualities.
Regarding your specific point about CEOs cutting jobs, sometimes that needs to happen. Lines of business don't always remain profitable. Sometimes a company needs to shut down unprofitable business units entirely, and exit the business. Sometimes a company needs to lay off workers and find a different approach to remain profitable.
Sometimes a job that was done by humans before will be automated tomorrow. For example, the company Hostess that makes Twinkies used to employ 22,000 workers. The company went bankrupt, and people bought its ashes and restarted it. The new hostess now heavily takes advantage of automation and employs only 1,170 people. (1)
A lot of people got laid off in that transition. The layoffs were also necessary for the company to continue at all; otherwise it would have gone under for good. They had a non-viable economic model for producing their baked goods. The leaders in charge of the transition took the only reasonable action (in hindsight) to prevent the company from cratering. (1)
CEOs are the people in charge of making the best decision for their stakeholders in really tough circumstances. Sometimes layoffs are the best possible outcome among many worse outcomes. No CEO would prefer to lay off their people - it's a horrible thing to have to do - but when the company is in dire financial straights, sometimes there is no better alternative.
(1) https://www.washingtonpost.com/news/business/wp/2016/07/05/w...
I agree, in reality, "the market" thinks the CEO ought to be rewarded more, (I agree with the principle but not with the current levels). However if a CEO destroys billions of dollars of value, he gets a golden parachute or a new title. The employees get a pink slip.
If the CEO creates billions of dollars of value, the employees sometimes get a (tiny) bonus (medium bonus for bankers).
But what really is the value of Twinky to society compared to the life of a human being? (millions of $ vs $0?) And that is the fundamental place where I think we disagree.
I have a strong disagreement with the main tenet of this line of reasoning (this might become a strawman argument): that maximizing profit and financial success (or jobs) is the desirable goal for society. If you look at it in the sense that society should be organized such that "all men are created equal" with the right to "life, liberty and the pursuit of happiness", maximizing profit (or jobs) is perpendicular if not antithetical to the pursuit of happiness, at least for the many.
The CEO's happiness might be perfectly served by the current system, but what about the worker's? Also, what was the cost of the failure of the (previous) management teams to the CEOs vs the employees?
I confess that I've only read about "working" alternatives to the current system in fiction.
As the article points out, we are running out of jobs. Maybe now would be a good time for a rethink before we hit the crunch?
Yes, by firing people who don't provide much value at this company they can go on and provide more value at other companies. It will make their lives tougher for a while, but redistributing labor can provide immense value.
For example, lets say that a CEO over many hospitals cleaned up bureaucracy in them. This lead to increased efficiency, and now many people are just doing busywork and aren't really needed. The CEO then fires thousands of healthcare workers who can go on and work at other hospitals. This will drive down costs and help more people get the healthcare they need. His work is surely more important than the work of an individual healthcare worker.
The point is that rather than trying to follow NIH syndrome and building a new system from scratch, repeating all the same mistakes, perhaps one could try to fix the existing system?
Otherwise, the parallel social credits system will most likely either remain a parallel system with social stigma attached to it, or it will end up having the same problems as the already existing social credits system (i.e. money).
Maybe social credit could be used to run for office. Or it can be used to weight votes -- those with more social credit can cast 5 votes in elections.
Think of a high ranking CEO and how maybe some airlines would invite them to fly for free just to get free advertising. Or might get invited to White House dinners and such. Maybe nurses, firefighters or teachers who achieved higher social credits would be treated the same way.
An allocated credit (for example), that could only be transferred once before going into artificial sinks, would function very differently, and encourage activities that help a much broader population.
That I believe is going to be a very divisive subject. Wasn't the 80's the years of the "welfare queen boogeyman" (or I guess "boogeywoman..."). It started around Reagan's times where they tried to paint welfare recipients as opportunists, lazy, downright criminal and how they were responsible for all possible waste and other evils.
That will stratify the society into those who work and those who don't. I believe people will always have this competitive streak and will want things to be "fair". If they see someone not working and getting by and they are the ones working, they might antagonize them.
> or should that be like "Achievements" in video games? And how do you avoid turning that into the Black Mirror episode "15 millions Merits".
Ah interesting. Heh, it would be like karma here on HN or Reddit. Can't do much with it, but get access to more places perhaps. Can't buy food with it, but can influence the public discourse with it (can upvote, downvote more...).
Yeah I like this idea (but I'd also have to watch Black Mirror).
Land value tax and Pigovian taxes. UBI would then be compensation for allowing others to monopolize our society's collective resources (eg. land). Every citizen is a shareholder, and UBI is a dividend.
Yes, try remove the arbitrage opportunity. That should help. Usually one would say competition is good, so different states with different tax laws is good. However, in many cases it is the workers and small communities that end up suffering as result.
The author connects work to our self-worth which I think is an important connection to be made. If our worth is defined by work completed/productivity and there is a lack of work, slowly it means there is going to be a rise of people with a lack of self-worth (And being unemployed means your at home alone alot more) Depression will come.
I worry that this trend of lack of work will begin to lead a rise in suicide due to a compounded effect of lack of self-worth/identity.
Unsure if this is a sound conclusion to draw, but it worries me.
Obviously this is not relevant to the entire article, but I would suggest doing something like reading freakonomics before making what are imperically wrong statements.
Not that I dissagree entirely with the overall argument made by the article. I just feel like some of the examples could have been researched a little more.
Similarly, at this juncture self-production needs more effort at the technology and engineering side, not more op-eds by economists.
/r/reprap was started as a movement to enable self-production, but sadly, these days people buy 3D printers enabled by the movement but don't subscribe to their philosophy.
You don’t need profits to ‘reinvest’, to finance the expansion of your company’s workforce or output, as the recent history of Apple and most other corporations has amply demonstrated.
How do you reinvest without profits, and what is the Apple example? Apple makes a profit, and reinvests... confusing. Is he suggesting a loan, perhaps?
This doesn't sound right. It's laypeople who tend to measure the economy by employment.
Economists tend to measure the economy by production.
- John Ruskin
In other words, we massively increase the scope of human-rights-violating income taxation, while chasing capital out of the country.
The problem here is that the author is not making the link between this:
>Those jobs that disappeared in the Great Recession just aren’t coming back, regardless of what the unemployment rate tells you – the net gain in jobs since 2000 still stands at zero
And this:
>The fastest growing component of household income since 1959 has been ‘transfer payments’ from government. By the turn of the 21st century, 20 per cent of all household income came from this source – from what is otherwise known as welfare or ‘entitlements’.
The increase in social spending is the most likely cause of the decline in the labor participation rate and the less-than-stellar wage/productivity growth.
>But, wait, isn’t our present dilemma just a passing phase of the business cycle? What about the job market of the future? Haven’t the doomsayers, those damn Malthusians, always been proved wrong by rising productivity, new fields of enterprise, new economic opportunities? Well, yeah – until now, these times. The measurable trends of the past half-century, and the plausible projections for the next half-century, are just too empirically grounded to dismiss as dismal science or ideological hokum. They look like the data on climate change – you can deny them if you like, but you’ll sound like a moron when you do.
The author is lying. The empirical data does not confirm his technological unemployment hypothesis. The demand for labor globally has grown over the last half century, and it has accelerated over the last couple of decades. Wages have grown faster over the last 20 years than in any period of history:
http://www.csmonitor.com/World/2016/0207/Progress-in-the-glo...
Another leftist demagogue looking for government money.
If you want to understand how automation affects the demand for labor, I strongly recommend this article over the submitted post:
http://www.vox.com/new-money/2016/10/24/13327014/productivit...
An income tax uses the threat of imprisonment to force people to surrender their privacy rights, in disclosing how much income one received in private trade, and from what sources, and their private property rights. It's a violation of human rights.
automated jobs could spell out the end of capitalism.
but idk
There is plenty of work. The only problem is with quality, because the fact of the matter is, most work just sucks. And it just gets worse.
That's because most work is delegated. Meaning, it's packaged and marginalized into it's simplest form to minimize mistakes and maximize simplicity, and it just keeps raining from above. Such work sucks to most people. It's Foxconn, it's berry picking, it's beneath us.
But it isn't. That's the delusion.
And this kind of work we have infinite amounts of. What every aspiring entrepreneur needs are good workers that just get shit done regardless of the task, and that first hire must be themselves. Be picky and you're screwed. Obsess about character and self worth and you might as well just burn all your time and money. Those things are important, but the point is, they have nothing to do with any task at hand. Those are the HUGE tasks that are NOT AT HAND. Even if you're working for yourself the IRS will rain work on you, your clients will, a bad sales day will, a broken web site will.
There was an interview with Elon Musk once where he was asked how he had spent his day so far. He explained how he was buying up all the USB cables at the local electronic stores because one of his suppliers missed their deadline and he needed to finish building some cars. How fun is that? Imagine all the glorious work he could be doing. Imagine how much his time is worth. He could be making millions. Except, that is precisely how he makes millions. By chasing down USB cables to meet deadlines. And volunteering to be interviewed.
There was also an interview with Sean P. Diddy Combs where he was asked how great life was and he basically said he had no complaints, but that he'd rather be having sex all day. And he is absolutely right. There is no work that is going to beat sex. Work = Not sex. That's it. He is worth 700 million. Madonna was also asked about sex, and she basically admitted being too busy for it. No shit! She is worth 500 million. Anyone can fuck all day. But that isn't work, and that isn't how anyone becomes a pop mogul.
The point is, stroking your own ego and thinking certain work is beneath you is like confusing work for something better. It isn't. It's like refusing to work because it's not fun or sexy or sex. And whether it's taking out the trash or making a presentation to a VC or just coding, work is all just work. It's shit that just needs to get done.
Then what's the difference between me or you buying a USB cable versus Elon Musk? The only difference is what happened years ago when Elon sat down and made a decision to build Electric Cars. The only difference is when he decided he wanted to colonize Mars. After such decisions were made, the rest is all just work, and it's mostly work that just rains down from above. He went to Russia to buy rocket engines because he had to. He poured in his own money because he had to. He watched a rocket explode because he was lied to about the specs of some bolts, because he had to. Is this the work we all seek? There is no seeking. There is no above or beneath. There is no character building. There is no you. There is just work work work!
There is plenty of work. Fuck not working. We need to get back to work not because it defines us, but because we can define our dreams. Let's Make America Great Again (TM). And when we see our new America in all of its extraordinaire that is when we become heroes again -- not the assholes we are known for.
The American Dream requires American Dreamers. It's all work, and no sex. The "fuck" in "fuck work" is as close as it gets.
Or that, there are inherent contradictions in capitalism and therefore people have lied to you. The system is more complex and less rational than you thought. That would mean that we aren't in Fukuyama's post-ideological, end-of-history era!
Sounds terrifying, maybe it is better to avoid becoming an educated adult.
Also, I disagree, irony has its place and one of them is to poke fun at commonly held but profoundly mistaken beliefs that result in widespread suffering. Even if that has a high chance of offending people who don't like smart ass comments chipping away at the pedestal holding up their privilege.
I'm sure you meant well, and I'm not attack you. I have noticed that often cutting jokes are considered acceptable here only when they align with certain political beliefs, and I feel it's eminently constructive to politely push back on that, so please take this as my intent.
I'm tired of hearing these people rationalize their work as being 'to allocate capital efficiently' - Their real job description is 'to dilute real value and centralize capital'. These people don't create jobs; they transfer jobs from small businesses to big corporations.
Those big corporations gain market share not by offering a superior product for a lower price; they do so by manipulating the markets and using the media to project a false image of quality...
If you go to MacDonald's and get a burger, if you forget that you're eating a Big Mac for a second and try to think about it objectively; it's very poor quality; the meat actually tastes like wet cardboard and the bun is like 70% air!
I worked for a major gambling (sports betting) corporation as a software engineer (for 6 months). The job was enjoyable (and extremely well paid) but it was obviously bad for society. I don't have a problem admitting that what I did was evil. I was a small fish, but it's no excuse.
Essentially, I took money from people who were not as smart as me. Maybe I caused people to lose their homes, maybe they got divorced or maybe some even committed suicide (there were stories in the office). I think it's important to acknowledge these things and try to fix them (by quitting, for example).
You can always rationalize that people are responsible for their own actions, but when you are guilty of manipulating people's minds, I don't think it's reasonable to do so.
Sometimes you do have to do a little bit for the common good.
I had kind of the opposite experience as you. I worked at a company that I felt good about, but over time they took on projects I was less on-board with for various reasons (money, political capital). Eventually it got to the point where it was no longer worth the lower paycheck.
What's wrong with that? I want a job that pays well, I don't care how many people share ownership or how large the separate units of ownership are.