India will ban driverless cars in order to protect jobs
engadget.com
engadget.com
> The story goes that Milton Friedman was once taken to see a massive government project somewhere in Asia. Thousands of workers using shovels were building a canal. Friedman was puzzled. Why weren't there any excavators or any mechanized earth-moving equipment? A government official explained that using shovels created more jobs. Friedman's response: "Then why not use spoons instead of shovels?"
http://online.wsj.com/article/SB1000142405270230407010457639...
The attribution for the quote is a bit disputed though : http://quoteinvestigator.com/2011/10/10/spoons-shovels/
But actually what works is, perhaps, shovels. And then, if you can afford it, earth-moving equipment.
Who says shovels are best?
Prices say shovels are best. And then, later, prices say earth-moving equipment is best. You don't have to be a Randian absolutist to conclude that governments inevitably distort outcomes and impoverish people, even at the margin, when they control prices.
I think what is implicit in a move like Gadkari's is a belief that the idea of a "market-clearing price" is an economic textbook proposal that one is free to adopt or not adopt. In fact these concepts are not theories but reality-reflecting lenses. Prices are actual facts. The ban on driverless cars will create grey markets, criminals, cartelize commercial driving, artificially enhance transport costs, and, perhaps most insidiously, marginally nudge a young man or woman on the edge of deciding between (say) driving and doing a Masters degree, to drive.
That is, your argument is more an assumption that ideal economic models apply than a justification. Ideal economics don't always apply, prices aren't always transparent, competition isn't always perfect, cows aren't spherical.
Create a few extra jobs now and destroy an entire industry in the long run. Just like India has a blanket ban on all small drones which just means that whatever innovations come from the drone industry, India will only be its importer.
The sad thing is Nitin Gadkari one of the more sensible ministers and yet this is coming from him.
A lot of politicians around the world may be saying that soon.
I guess we should spin up the weaving looms when the next recession hits?
So if your goal is temporary employment gains for long term poverty, this is a good way to start.
[1]https://en.wikipedia.org/wiki/Parable_of_the_broken_window
Put another way, when workers become more efficient -- one factory worker able to control many weaving machines, or a relatively small group of programmers able to control many cars -- people's standard of living increases.
Maybe you're willing to pay more for clothes, or transportation, or any one thing. But paying more for all of the things that have gotten cheaper due to increases in efficiency since time X is tantamount to going back to the standard of living of time X.
You can see this in one of the founders of Facebook - he renounced his US citizenship, because of the onerous tax burdens. (https://bits.blogs.nytimes.com/2012/05/11/a-facebook-founder...)
It's foolish to just say "we should tax rich people and rich corporations more." You're incentivizing them to not play the game, and wealthy people generally have more abilities to evade taxes than people in the lower upper class or middle class, which is who the burden will inevitably fall upon.
This is not the middle ages anymore, where peoples' riches are tied up in real estate and machinery. Immovable capital.
Capital is fluid these days. If you start guillotining people for absolutely nothing except being rich (which is what you're insinuating) they'll just leave and take all the capital and productive capacity with them. See Venezuela.
It's not supposed to.
I could stick it to the rich bastards who own energy stocks, but I'd rather be warm in the winter and cool in the summer.
They can communicate with anyone else at almost zero marginal cost, and can sell products and services to basically anyone else on the planet. All because things keep getting cheaper.
That's the point of making things cheaper.
Sure, a consequence of that is that the founders and executives and financiers of Google, Samsung, Apple etc are wildly rich. And that means they can (and do) invest in new products and services to keep improving peoples' standard of living, as well as funding benevolent projects.
It's pretty amazing if you ask me.
Is this even happening though?
Driven by the vast interest coming from Bengaluru, technology hub, nearly half of enrollments in the country are in technology courses such as computer science (25 per cent) and data science (18 per cent).
- http://economictimes.indiatimes.com/industry/services/educat...
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Ukraine $2,468.54
Russia $1,302.77
Serbia $732.12
Romania $633.40
China $609.30There will naturally be a distribution of incomes among those people, with some people earning little or nothing, and some people earning a lot.
The point is that whatever the income a given person is earning, that is income that was unavailable to them before modern computing and communications devices became affordable to them.
That's money that people are using to build better lives for themselves, their families and their communities.
As I said, that is the point of making things cheaper.
I'd add that your response makes a tidy argument against the abusive public employee unions that hold public fisc hostage in the U.S. Right now, U.S. teachers' unions have crafted a public education industry that is a lot like what this technocrat in India might have conceived .
Remember, those idle workers aren't being paid a nice pay packet. They'll be on subsistence wages only. You'll still want to work a job if you want nice things.
Those are only the most notable major civil wars, but it's amazing how revolts are common across the world.
https://en.wikipedia.org/wiki/List_of_revolutions_and_rebell...
Cars could be available always, not just when people are up. This could lead to a stronger economy, the car delivers the customer to the product, instead of he customer having to think about it. Less friction in decision making, more freedom.
For people of developed nations that get used to that lifestyle, it would be a world of night and day when they arrive in a place that is actively against the conveniences of life afforded by technology. Life, for these people banned from this awesome experience, would appear more bleak and torturous. Even viewed by some as primitive.
Locally developed military technology suffers, with the lack of local talent they would have to accept inferior technology.
There are probably endless implications for banning things. They could have been smart and just taxed this tech very high in place of taking jobs.
It is a silent catastrophe as a governing decision.
I can only imagine what privileges the next generation are going to upgrade to necessities.
Companies are obviously not going to do that if they have autonomy since it's inefficient production. Instead, the government will have to do so, and at that point they only do so to pump money into the economy. Why not instead spend that on NASA like space programs instead?
I've long advocated for a "techno-Keynesian" approach to economics.
By banning any sort of technology, you're indirectly increasing the costs of domestically placed goods, by increasing the costs of production.
Once self-driving cars hit, the switch will be immediate and massive. I would predict 10% to 90% penetration in probably less than 12 months--the limitation will simply be building the cars fast enough. That's a lot of people suddenly with no income.
Protecting people against that disruption for 50 years? Probably a bad idea. Protecting people for 5 years? Maybe a good idea.
An efficient market is a ruthless market. And people are its victims.
It will probably take 12 months just to form the exploratory committee that will form the actual committee that will even begin to consider legalizing fully driverless cars.
This change involves many levels of government bureaucracy. It will happen, but it's definitely not going to be "immediate".
Maybe, maybe not. We've seen tech outpace regulation many times - Facebook and privacy, Uber and taxis, e-mail and spam, etc.
I mean, I can understand "move fast and break things" when it comes to releasing web applications. My sympathy ends when you're literally moving fast and literally breaking things.
Normally, you would be correct. However, there will be so much at stake that there will be huge amounts of money greasing the skids on any required legislation.
Real Level 3 Autonomy will displace 75% of truckers almost immediately--that's 1.5 million jobs lost. You will have one or two drivers in the front truck and a half-dozen trucks running autonomously but slaved to the front truck. WalMart will almost certainly lead the charge.
Level 4 autonomy will allow the insurance companies to jack insurance rates on normal drivers through the roof. You will get a massive insurance discount if you never touch the wheel (removes human driver error--total monitoring so always other driver's fault).
With that much money at stake, the obstacles will melt like ice in the summertime. See: Fracking in Pennsylvania for an example of how fast legislation can move with enough money behind it.
(Disclaimer: I haven't been to India for a couple of decades... maybe it's improved?)
Driverless cars or rather augmented driving will save lives but the minister doesn't care for those. Driverless cars will create more jobs in engineering, training and monitoring because driverless cars will not come one fine day but over a period of 10 years.
As someone who is working on self driving tech, this saddens me.
India needs more eyes on this problem because of our roads and our bad traffic sense. The fact that we don't drive on the same side of the road as the western world means their tech won't be adaptable directly. So much potential and opportunity but I guess the minister wants us to keep doing the cheap menial jobs.
However, the bigger problem on Indian roads is congestion. I think you need smaller autonomous vehicles that can navigate through the crevices and cracks ( gallis ). Something smaller than the Tata Nano.
Not as of today.
Its not generic AI. Also to an extent you need good road infrastructure for these things, which we don't have it here in India.
In many states, unemployed youth are likely to create a law and order crisis or exacerbate one that already exists. Neither does India have a huge amount of money lying around to fund something like UBI.
However, this situation didn't just happen on its own. Indian bureaucracy stifles private businesses by all kinds of vague regulations. A lot of effort is needed to rectify this and some people in power understand this, though it would take some time for them to bring the rest of them on board.
Secondly, the automobile industry in India is extremely significant. I believe they also bring in a substantial amount of foreign exchange now. If the global market is moving towards driverless technology, then India's corporates can't afford to be left behind. And they will put a lot of pressure on the law makers.
Finally, these politicians aren't very principled people. They will definitely change their tune under the right circumstances.
I think your comment is pretty accurate. It's one thing for us to laugh at the minister, but we don't really have any other solution for the huge numbers of people who will be put out of work if driverless cars take off in India.
In Indian malls, there are so many helpers standing around that if you lift up a merchandise, you'll be jump scared by someone asking you how she can help you. People are also used to asking the prices of the items, even though just flipping around would reveal the tags that clearly earmarks the final price (all tax and details). Indian are more used to DIFM (Do it for Me) than the western DIY culture.
Personally, I usually go on weekdays and I can have about 3+ people buzzing around me trying to help me decide what I want to buy. They all are my personal Siri for that location and context.
The labor market is also so cheap that Indians can afford to get much cheaper manual solutions than the one time bigger investment in automation and technology. Most people also know that it is more economical in the long run but don't really want to wait for the far-future gain.
If I hire a wash-helper to just wash my clothes twice a week, it will cost me just about ₹1000 ($15) (or even less) a month in Bangalore. A good washing machine (no dryer) will set you back by about ₹30,000($466). At that rate, I can have the wash-helper wash my clothes without failing or consuming electricity for 2+ years.
Very similar with a Dishwasher. A dishwash-helper can equivalently go on for 3+ years without any mechanical failure, no electricity consumption and you can talk to her. No annual maintenance needed either.
In early 2005, I was speaking at my first international conference and had my first US culture experience. There was a big mall opposite the Hyatt, Dearborn (forgot the name). I went in at a store and there was nobody to help me. The unmarked labels didn't help either. I did realize that I had to scan the barcode with a scanner (attached at quite convenient locations) and shows me the price details including the state tax. Manual labor is costly stateside and automation and modernization can bring in huge ROI. In India, anything that is a DIY needs someone to show them the DIY to the people.
So, when the transport minister says what he says, it is so easy for him to look for all the easier and more comfortable routes - just get someone to do it, "drive the car". We are a country where if Ikea comes in, my advice will be to have an army that can go and assemble their furniture at the customer location.
You, me and the people who think about automation, thinking 10 years ahead etc are far and few in between, especially in India, so he will very likely win.
Hell, many other politicians and fanatics are fighting over the exclusion of the word "cow" in public exhibitions such as movies.
>>In Indian malls, there are so many helpers standing around that if you lift up a merchandise, you'll be jump scared by someone asking you how she can help you.
This is because most people can't use these things properly. Its easier(and cheaper) to put a lift operator than to have people damage lift and having it repaired/replaced.
>>People are also used to asking the prices of the items, even though just flipping around would reveal the tags that clearly earmarks the final price (all tax and details).
Very few do this. Those people who ask generally do it because we are price conscious, absolutely nothing wrong with that.
Look at the wester society, bulk of the personal finance problems there arise because people spend money they don't have.
>>Personally, I usually go on weekdays and I can have about 3+ people buzzing around me trying to help me decide what I want to buy.
Again easier to help you shop quickly this way, than having tens of people pile up in the store.
>>If I hire a wash-helper to just wash my clothes twice a week, it will cost me just about ₹1000 ($15) (or even less) a month in Bangalore.
Most people would and do buy a Washing machine for something like this. You must be rich.
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Let's be frank this no-driverless cars is just political talk. When those cars arrive, these people will be the first ones trying to convince public about it.
Being rich, is kinda subjective. No, I'm not rich.
Anyways, I used to think why hasn't any company invested in self driving tech in India - and now the answer becomes pretty clear. One can possibly take the government head on and challenge the ban in the Supreme court.
Related video => [2006] India Driving https://www.youtube.com/watch?v=RjrEQaG5jPM
Edit: https://www.google.com/amp/s/thenextweb.com/cars/2017/06/12/...
Sure they can manipulate the currency but that places a tax on what everyone buys from overseas and lowers standards of living.
How can anyone think that job creation is better than job elimination?
If you sort that by per 100k people or vehicles, India isn't doing too badly. They just have a lot of people.