New RFS: One Million Jobs
blog.ycombinator.com
blog.ycombinator.com
All politicians talk about creating jobs. 99% of the time it leads to bad regulation that creates jobs through incentivizing inefficiency. People of course will vote for politicians that advocate job creation because people want jobs. The extreme form of this is ludditism.
People miss the whole point of companies. The goal should never be providing jobs but creating value. If a company could be made automatic and all it's employees jobless, then that would obviously be positive. The company would still create the same value to society, but would require less people.
The main counter-argument is that those who advocate job creation only advocate "necessary jobs or "meaningful jobs". In practise that doesn't pan out. It's simply a backwards way of trying to create more products and services.
When I talk about bullshit jobs, I mean, the kind of jobs that even those who work them feel do not really need to exist. A lot of them are made-up middle management, you know, I’m the “East Coast strategic vision coordinator” for some big firm, which basically means you spend all your time at meetings or forming teams that then send reports to one another. Or someone who works in an industry that they feel doesn’t need to exist, like most of the corporate lawyers I know, or telemarketers, or lobbyists…. Just think of when you walk into a hospital, how half the employees never seem to do anything for sick people, but are just filling out insurance forms and sending information to each other. Some of that work obviously does need to be done, but for the most part, everyone working there knows what really needs to get done and that the remaining 90 percent of what they do is bullshit.
http://www.salon.com/2014/06/01/help_us_thomas_piketty_the_1...
> We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.
It is a fundamental misunderstanding of the Constitutional scheme to think that the Framers implemented "limited government." The federal government was indeed constituted as one of limited powers, but it was created against the backdrop of the state governments, which were conceived to have inherited all the powers of the British sovereign, limited only by their own constitutions.
You can invoke the Constitution to argue that some particular policy is better implemented at the state level than the federal level, but it is incorrect to say that this or that end is not the function of the federal and state governments taken together. We live, by design, in a democracy: the ends of government are whatever we want them to be, subject only to the limitations outlined in the Constitution.
I'm more of a Federalist--confusing name for an important concept. But I don't think that's what we're talking about. It sounds like we're disagreeing with what constitutes "general welfare" as you highlighted.
Ok, where do you draw the line in modern society? If you want to invoke the argument "what would the framers have wanted?" then what do you think they meant? Who can limit the definition of "general welfare" now. All you need is a bunch of loud people for any random issue, then it becomes a general welfare issue.
Yes, the state governments should have more power--I assume that was your point.
> Yes, the state governments should have more power--I assume that was your point.
No, my point is that your original statement ("it's certainly not the function of the USA govt to provide anything but what's defined in the constitution") is wrong. That might be true of the federal government, which is limited in scope, but that is not true of the state governments, which are not and were never conceived to be. The state governments can (try to) provide, almost without limit, whatever voters want them to provide.
Since the State (in the academic sense of the word, with capital S) can comprise institutions at multiple administrative levels (eg state and federal), it is entirely possible to have a federal government with limited powers against a backdrop of strong state governments.
Indeed, some legal historians like William Novak have argued that many of today's widespread notions around the historicity of "limited government" and the early republic are largely revisionist myths [1].
[1] http://www.history.ucsb.edu/projects/labor/documents/TheMyth...
That is exactly what the framers wanted from the federal government. Your following sentence directly contradicts your entire point. We're talking about FEDERAL POWERS.
In any case, there's nothing contradictory in that statement. "Limited government" is a term with specific meaning in libertarian and neoclassical circles. It refers to a society in which the government, which may be democratically elected, has a limited range of powers and can only pursue certain ends. In such a society, the majority cannot vote to pursue a particular end if it is outside the proper scope of government.
The framers did not implement "limited government" in the U.S. They created a limited government, the federal government, but only against the backdrop of the un-limited state governments. In the U.S., the "government" (between the state governments and the federal government), can pursue nearly any end that voters might wish to pursue. It is, together, limited only in scope by certain Constitutional rights. The limited nature of the federal government is just a tool to divide power between the state and federal levels.
1. You said Increasing overall production doesn't necessarily do anything for the lot of the median person.
Prove it. Provide sources. This is contradictory to the past 100 years of civilization.
2. You said In a democracy, where the interests of the majority are paramount, a policy that reduces overall production but leaves the median person better off could be rational.
Have you ever heard of "Tyranny of the Majority"? What if the majority wanted slavery? Would you still agree with your argument? We don't live in a democracy in the US--it's a simple way to communicate public participation in society, which is needed. You seem to be mixing stats and political metaphors with no coherent point.
Finally, I'm confused with your last assertion that policy that reduces overall production but leaves the median person better off could be rational. How is that rational? Then again, humans aren't rational so maybe I'm mistaken.
I'm happy to consider your opinion, I just don't understand what you're trying to say.
> Prove it. Provide sources. This is contradictory to the past 100 years of civilization.
This is a purely logical statement that does not require sources to prove. Imagine a society with 9 people, and 90 units of production, each person getting 10 units. Then imagine an improvement where total production goes up to 120 units, but the extra units are distributed so that each of the top three people get 20 units. Thus, not all changes that increase overall production necessarily improve the lot for the median person.
> Have you ever heard of "Tyranny of the Majority"? What if the majority wanted slavery? We don't live in a democracy in the US--it's a simple way to communicate public participation in society, which is needed.
You've got it backwards. We don't just have public participation in society, we have rule by the will of the majority, through elected leaders. The phrase "tyranny of the majority" is not synonymous with "majority rule." Rather, it refers to the exceptional case in which the majority uses its authority to abuse minorities. In the U.S. protections exist to prevent such abuse, but those are exceptions to the general rule that the majority is in charge.
In a system of limited government, the majority can express it's will through the government only in certain limited ways. But in the U.S., the "government" (state and local together) have nearly unlimited scope. In the U.S., the majority can express its will in nearly any way it wants, limited only by certain individual rights.
> Finally, I'm confused with your last assertion that policy that reduces overall production but leaves the median person better off could be rational. How is that rational?
Go back to the second scenario above. 9 people, 120 total units of production, with everyone having 10 except the top 3 people who have 20. In the next year, the people vote to change the rules so that total production is 111 units. However, that production is distributed so everyone has 11 units, while the top three people have 15 each. Thus, you have a scenario in which overall production is lower, but six people are better off and three people are worse off than the year before. In a democratic society, this is a totally rational policy.
Perhaps, but if you consider the past 35 years in the US (and Britain, to a lesser extent), that's exactly what's been happening. It is quite counterintuitive and hard to fathom, but in fact median incomes and wages today have not risen at all since 1980 (!) despite all these years of GDP growth and a steady rise in productivity, which has tripled since then and previously moved in tandem with [1,2].
Put in another way: simplistically, if US household income had risen along with productivity (as it did ever since modern records began), today the national median wage ought to be around $80,000 and median family income around $150,000 (in today's dollars!); and the still ongoing personal computer revolution would have seen people's wages nearly double within a decade.
Sounds preposterous, but that is what robust economic growth typically looks like.
[1] http://stateofworkingamerica.org/charts/productivity-and-rea...
[2] http://stateofworkingamerica.org/charts/real-income-growth-f...
Focussing on job creation is the wrong metric because you can do it by employing people to be inefficient, which makes everyone worse off as production falls.
Then again, this would be a net gain of 0 jobs, since these people would presumably be leaving employment under the person who owns the real estate.
I can already imagine how the cosmetology boards would feel towards such a start up. Those owning the establishments would start pressuring the cosmetology boards just like dispatchers are the ones pressuring taxicab commissions. Do cosmetology boards regulate the establishments, the people or the people relative to the establishment with which they are associated?
Another market would be disintermediating personal trainers from the gyms they are associated with. I'm curious if personal trainers would earn more if they paid for personal memberships with the 2-4 biggest gym networks in a geographic region and then advertised which gyms they could train you at. This way customers could search for personal trainers that work out of the customer's gym of choice. Right now PT pay a portion of their earnings to the gyms, and I suspect its a large percentage, relatively speaking. This could be extended beyond personal training to sports specific training (running, swimming, cycling, rock climbing, etc.). [sarcasm]Is the domain trainr.com taken yet?[/sarcasm]
Another market could probably revolve around elections, and other regular seasonal/temporary work. Have the volunteers focus on the more valuable labor like p2p evangelism and have the paid labor work on putting up signs (and cleaning them up afterwards).
Also, is there a market for in-home caregivers (elderly, disabled, terminally ill) already and special needs caregivers? Would be great to be able to search for people in an area by reputation, experience, special skills/certifications (registered nurse, experience with children with autism, etc.).
Basically, any job that exists today where there are local establishments "pimping" out the employee (gyms, homecare companies, etc.) and taking an exorbitant cut of revenue because they have a brand name or prime real estate is ripe for disruption from an online P2P marketplace. You can literally flip through the "gigs" and "services" section of craigslist to get ideas here.
I'm also surprised that there isn't a way to hire a cheap paralegal directly to help you find a decent lawyer, negotiate a decent rate and work with that lawyer to make things more efficient. The cost of legal representation could be much cheaper if people needing legal representation could hire paralegals and recently graduated law students that don't yet have a job (tough market) to help you out. Furthermore, it helps out all those out of work law students since it gives them a way in the door with good law firms via their client's pocket books. If a lawyer is particularly impressed with the person helping their client, they may decide to hire them full time.
To truly create 1M new jobs, you'd need to make an entirely new line of work (Amazon mechanical turk type stuff), or enable 1M new people to participate in an existing line of work where previously there were barriers to entry (Uber/Lyft/Sidecar/AirBnB). The latter would have the effect of deflating that market, reducing median income so that achieving 1M becomes more difficult.
FYI, some dance instructors in the Bay Area work this way (i.e. they are independent but have relationships with various dance studios to teach and/or use the space for private classes.)
Efficiency at all costs is something that's great for you to make other people do. Do you take the bus and walk to work? Do you have an padded chair in your office?
Henry Ford was uniquely smart among the "captains of industry" of the past in that he got that his ability to manufacture cars exceeded the economy's ability to consume them.
One of his business objectives was for his workers to be able to purchase his cars.
The profit-sharing was offered to employees who had worked at the company for six months or more, and, importantly, conducted their lives in a manner of which Ford's "Social Department" approved. They frowned on heavy drinking, gambling, and (what today are called) deadbeat dads. The Social Department used 50 investigators, plus support staff, to maintain employee standards; a large percentage of workers were able to qualify for this "profit-sharing."
Besides, paying people well and eliminating jobs is not exclusive. Did Ford hire people he didn't need?
Ford was a hard nosed capitalist with fascist leanings. Even so, while living in an era where workers were competely disposable and had virtually no rights, he paid people more than they were theoretically worth.
Still, my last statement stands; paying well is not incompatible with hiring few.
I can also say that working at a big company that is people's mentality. They want to manage a lot of people. That's their goal. Not to create value. And imho the results are often poor.
I think it would be great for society if there were less jobs and people were able to pursue more creative endeavors than menial jobs. imho the goal should be to find a way for people to meet their basic needs without needing a job. NOT to create tons of jobs.
It is not to create a huge company. It has nothing to do with eliminating jobs. It has nothing to do with provide basic living standard.
For example, if a new technology that allow us to regrow part of organs easily, but it requires living persons to carry the organs within their bodies until organs mature to be transplanted. Those people may have a job as 'organ incubator'.
Your investment would be valued 0 if no one wants or needs it. And valuation is how much they are willing to pay for it.
So in the end. I think creating jobs is just a mask for 'creating demand for new things for people have no new creating wealth'. Since total aggregation of time of lives of oligarchs and their families are much limited than total populations. So it is better to create demand for consumer market.
But of course, if one day, oligarchs have technology to enable them to live forever, they will have unlimited time to live and my argument won't sustain under that condition.
Is that "creating demand" for labour? Or for the products?
Is demand for slave labour a good kind of demand?
But I feel if the oligarch overplays the enslavement, everyone can choose to commit suicide and having no pain anymore in their lives. Then the oligarch will have no one to play the game with.
So to keep the system working, the oligarch has to fulfill desires of people.
My main point is the most precious wealth for everyone is the time of their lives. And we all trade our time in lives with other people in either products or services. Progress in technologies has enabled us to enjoy growing purchase power of our time and enable us with more fulfillment of desires. But for the moment the whole economy system somewhat gets stuck and we are having problems to figure out what demand can we create to allow people to trade with. Even an oligarch has to trade wealth for desires.
That's not how slavery works.
"I feel if the oligarch overplays the enslavement, everyone can choose to commit suicide"
Again, this is not historically aware.
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I will agree with you on a broader point, which I think you've left unsaid: that everything you want in life is almost always in the hands of someone else already.
For example, if you want a thing someone else has already owned it (or its component parts). If you want a friend, someone else has already been in a relationship with them (either earlier friends, or their family etc). If you want to build anything you need tools, and raw materials, and other resources that somebody else has already found, claimed, owned or handled.
And in that logical sense, "success" is nothing more than taking what (some) other people have already got.
But you've over-abstracted the point to much:
*Even an oligarch has to trade wealth for desires."
True, but this is still consistent will chattle slavery.
I may "trade my wealth" for weapons, and food, and the means to keep you chained to the cotton field. But that says nothing of the way in which the threat of violence co-erces you into doing my bidding--that type of coercive consent is an interesting but ultimately tangentially related academic rabbit hole.
It's thought that hunter/gatherer societies only worked 15-20 hours per week.
Increase customers, yes. Create a two sided market, yes. In the case of a 2 sided market the "workers" are your customers.
Uber eliminates the jobs for manual dispatcher at cab companies.
Absolutely: their own job, for starters!
More broadly though: some of the most oft-cited reasons by people starting small businesses (tech included) is quite explicitly to be able to do stuff they like and be paid for it; or be able to surround themselves with like-minded people working on goals of common interest to them. Other times, family members, friends or colleagues/guild members come together to provide themselves with a steady source of income --that's how most law firms and medical practices get started, after all.
The world is going to have a hard time pursuing "creative endeavors" while homeless and starving - which, if you hadn't checked, is what happens when you don't have a job and people around you support conservative economic policy.
It is not possible to hold this position without being legitimately fairytale-villain evil or a socialist.
e.g., if someone has off-grid battery tech and solar (or whatever else), they can knock off their electricity and gas bills. If they can automate the recycling of sewage into clean water, fertiliser and leftovers, and they had water storage, they could ditch their water bill.
If they had underground (think shipping containers) and automated food production, they could cover some of their food bills and still have ground level land free for entertainment.
Of my general costs, I'm not immediately sure how we would ultimately replace council costs (roads, etc) and internet connectivity.
Creating 1 million jobs might mean disrupting 100,000 others. Or maybe it will just mean removing waste in large scale processes that we currently do as a society. My friend Mo is doing this http://www.gizmag.com/infinite-pipeline/23762/ which could help bring water to places that it wasn't economical to do previously. This would change the life of those people who need to fetch water every day. Spending half your day getting water is a huge waste of human potential.
I prefer clear goals. I want to create value and I am agnostic to the effect it has on jobs.
+1 for Mo
Surely your goal as an antrepreneur shoul dbe to provide a million people with a desirable new product/service/ The word 'entrepreneur' means 'between-taker', ie someone that carries things back and forth between suppliers and consumers, like historical traders.
Identifying economic inefficiency and finding something to remedy it is one way of identifying your target consumer, but far from the only one. In your example of the shipping container, you neglect to consider that they're only useful insofar as there is sufficient trading activity taking place to fill the containers up. Labor shortages aren't often a big limiting factor on trade.
I think it would be great for society if there were less jobs and people were able to pursue more creative endeavors than menial jobs.
So do I, but creativity and productivity are wholly different things, especially when it comes to paying the bills.
I think it is reasonable for YC to have an investment theory that is something like 'productivity enhancements are making many talented human resources available more cheaply, a business that finds a way to use them could do well.'
But, I think the Uber example is a little unclear. It seems likely to me that driving is going to be automated away in 10-20 years. And, since so many adults drive (even those with other jobs), there is a massive incentive to find a way to automate that activity and make it safer.
I think there is a bit of a paradox - as the number of people employed in a task increases, the incentive to automate that task increases as well. I am not too optimistic that creating large numbers of long-term sustainable jobs is easy, but I think the attempt to find uses for undervalued resources makes as much sense for humans as it does for any other resource.
A job is demand that has to be fulfilled by another human being.
Demand comes from desires of human beings.
We as human beings, can have unlimited desires.
We as human beings, are limited by time of lives.
To create jobs is to create unlimited demand that need to be fulfilled with trading of time of another human beings.
Efficiency is to increase the purchase power of time. Then wealth of lives of human beings.
And wealth has to flow, otherwise prosperity won't appear.
And desires are limited by our imagination.
It is a shame though your downvoters elsewhere in this thread fail to appreciate your effort at explaining the --admittedly quite unintuitive-- demand side of the macroeconomy.
Ok, I'll bite.
It would still create the same value to its investors.
No for-profit company ever creates value to society except by employing people or by having secondary effects that result in more/higher-quality employment.
See "secondary effects that result in more/higher-quality employment."
Why? Who says efficiency should be humanity's goal? Is humanity a machine to be optimized? Are we just evolved cogs, one of nature's crueler jokes, or are we (also) agents that can put up a fight? You know, Dostoyevsky extolled the virtues of intentional self harm -- or spite -- as a person's noblest goal, asserting freedom from "laws of nature". I'm not saying spite should be a matter of public policy, but it's very important to avoid seeing some mechanistic, or even natural, process as a desirable outcome just because that's how things work (this is the naturalistic fallacy[1]). Public policy should be crafted subject to consideration and political debate.
> People miss the whole point of companies. The goal should never be providing jobs but creating value.
Says who? That's a peculiarly American view of the role of corporations. Another valid goal for companies is providing sustenance to their employees first, and "value" later. I.e. generating value is just a means to an end.
I think saying that creating jobs is a goal is more accurately the viewpoint that humans are cogs.
Say there's an efficient way to do something, for example: a machine that weaves fabric.
If the goal is to create jobs, we could stop the machine and hire people to do the job. In fact, I bet we could force people to do it in a really inefficient and tedious manner that would require lots of people to replace a single machine.
The disadvantages: slower. more expensive. more error-prone. people's time-wasting.
The advantages: these people have a job so now you have a 'valid' excuse to give people an income.
Indeed. Even stakeholder-driven commercial institutions like co-ops or credit unions are somehow culturally not-quite-corporations in the (American) usual sense.
"creating shareholder value"
Even if we're ignoring "social good" (which is a perfectly valid "shareholder value") one way to chase profit is to look for inputs that are cheap, and figure out how to turn those inexpensive inputs into expensive finished goods.
Right now, low-end labor is quite inexpensive. If you can figure out how to produce something useful using that inexpensive labor, there is profit to be had.
I see them as KFC in the egg farming world - pushing all the capital expenditure and risk onto smallest individuals whilst then aggregating what should be a distributed market.
I think any company capable of directly claiming to create one million jobs will be this abusive on a massive global scale - not something I would want to invest in personally.
I can imagine plenty of ways to create a million jobs - invent fusion power, invent a foldaway surgery theatre, but they are not things that capture the value back to the originator (that is the genuine use for patents).
So this seems like "build a market platform, make sure it is not interoperable, find a business model that makes individuals dependant on you, while pretending they are businesses". I think I understand what YC is reaching for here - there is a coming hollowing out of jobs, somehow we need to create new jobs. I agree - but a business model that creates new jobs and captures that surplus seems to me abusive - or it is a marketplace open to competition from other marketplaces and that's rarely a way to make money. So far.
Edit: clarify as much as I can this early before coffee
Absolutely, but you must consider the possibility that in addition to turf protection, those regulations actually serve a social purpose. Not every innovation is good and every regulation is bad. Sometimes regulation is formalized valuable lessons learned over many years. As someone who sees Uber as an exploitative venture (I may be wrong), I actually find those regulations the last wall slowing down the huns.
It's true that regulations can be perverted and manipulated by incumbents but in my mind that's a separate issue (related to lobbying and politics). It doesn't mean we should throw out the laws all-together.
But that's not the point - Uber has no obligation to their drivers to provide work, or a fixed amount of pay not does it want to operate in an environment where it Ilis forced to do that. And history shows that if you have all the capital requirements at the bottom of the ladder (you own the car / the chicken shed / the 17wheeler) then the bottom of the ladder will keep cutting its own throat.
Uber would not be in business if it owned the capital.
What surprises me is the taxi firms do not seem to be fighting back with a (open) app of their own
This seems to be something where the total jobs globally is static (perhaps total demand is) except for natural growth probably population related
And is distinct from an invention - say fusion power - that actually increases the value available to humans
Just realised quite horribly that I wrote that on the coach in to work 20 hours ago - and have just got into bed. It's gonna be a rough day tomorrow.
i can envision a future where a million people drive for uber, or where someone creates a healthcare platform that lets individuals find people who need care, or an education platform that matches up people who want to learn with people who want to each, or...
Such a company might not be feasible in the current regulatory climate, but some people say the same about Uber.
Or "50k new firms each with 20 employees". When I first read the OP I thought about some new "Green Power" innovation where you need installers, servicers, etc. Possibly-crazy example would be PV that's 100x cheaper / more efficient than today, leading to an explosion in the demand for rooftop installations -- to the level of nearly every household, strip mall, big box, etc in the developed world. Prior example might be the auto industry 100 years ago, which created a need for parts mfg firms, dealers, mechanics, etc.
Or an entirely new and previously unheard of industry. Definitely-crazy example would be making Mars colonization possible, where you'd need thousands of employees for production, thousands more colonists, specialists like pilots, entire sub-industries, etc. The canonical prior example would be the explosive growth of the internet over the past 30 years; SEO as a job title (to pick one) didn't exist in 1990.
Pneumatic transit comes to mind. Demonstrating the viability of Hyperloop as the first new mode of transportation since the jet would spurn a whole new global industry practically overnight!
Ohwait.
No, it actually doesn't work. While it does sound like a good idea in theory (tit-for-tat), in practice greedy corporations (I mean that neutrally, in the capitalist sense where corporations have a duty to extract maximum profits) have powerful incentives to shaft employees over these benefits in order to maximise shareholder value.
In an ideal scenario, companies would compete for employees, and would provide good benefits to out-offer other companies. In practice, a large part of the workforce is groveling for jobs and will accept any raw deal for some kind of income.
Oh hey, egregious example: Walmart http://en.wikipedia.org/wiki/Criticism_of_Walmart#Health_ins...
Or that thing that's been in the news lately: http://america.aljazeera.com/articles/2014/6/30/hobby-lobby-...
Or some random link from "company denies healthcare news" search: http://www.news-leader.com/story/money/2014/03/18/washington...
If physical presence isn't required, Elance, Odesk and even Amazon Mechanical Turk exist. Drives cost of labor down to the $1/hour range (globally competitive) - probably not what Sam is getting at here.
It's also really interesting to see this idea. My initial read is that this sounds like a response to the common criticism that Silicon Valley destroys jobs in aggregate ("software eats the world.") Will be fascinating to see if something emerges here.
The road ahead is steep, though. At first I thought Leah's TaskRabbit would eventually head that way, but to me it strikes me as if she's still massively underestimating the potential of her platform. Justin Kan's Exec and its postmortem doesn't bode too well, either (but it's still an insightful read) [2]. I'm pretty sure though you and AB have what it takes to figure it all out.
[1] http://www.propublica.org/article/the-expendables-how-the-te...
Taskrabbit is for tasks, which are great, but not in as much demand as weekly, monthly, or even daily stints. Think the local starbucks, a small business around the holiday hours, or even accounting (Robert Half is big on this).
Overall, it has the potential for a very large impact and massive business. Look at the jobs report today. If you could more efficiently help employ 1 million people the economy is improved. You're also looking at one of the largest workforces and businesses in the country.
btw, sounds like you know Andres and I. Can't tell who this is by your username. Feel free to drop me a line - j@jasonlbaptiste.com
If the concept is to "create an ecosystem" that has 1x10^6 employees, than this seems almost trivial. In that case its just a series of logical optics on starting new industries. But again, what is the empirical data show?
Would facebook meet this test? Did they invent social media? Probably not, so they are a "failure". Are there any companies in the fortune 500 that would? Maybe RCA and the TV industry? or the early Hollywood Studios? Silicon Valley itself seems have created more than "a million jobs" if you abstract it out to "the computer" industry, or "the software" industry but its largest companies don't get that big and its ecosystems are simply abstractions both in their point of origin and their ultimate threshold/boundary definitions.
Having a company that employes people for "freelance work" is simply just an outsourcing shell company and nothing to be proud of. It also doesn't seem overly original, in the more dramatic way the the headline would suggest.
I too want to have a million people doing my bidding for me, cheaply. (BTW, The fastest way to get this dynamic is probably to make the poor poorer, and the rich richer).
suggested edit:
New RFS: One Million Careers
(McJob creators need not apply).
[1] http://www.huffingtonpost.com/jerry-jasinowski/jobs-multipli...
Or a way of handling job sharing so that a million full-time jobs are just as easily managed by two million people who'd prefer to reduce their hours. (People going on maternity/paternity leave would love an opportunity like this.)
What new consensus might we converge on if we continue to automate away jobs quicker than retraining can reasonably be expected?
Personally, I'm excited when technology can expose the lie that 40-hour-per-week paying jobs are required to be a contributing member of society. Unfortunately, exposing that lie likely involves some period of high unemployment before a critical mass of people start to reject the premise that holding a job equates to worthiness in society.
I've recently come across the term "accelerationism" on HN, and it seems to at least partially describe the above position:
> Accelerationism is the name of a contemporary political heresy: the insistence that the only radical political response to capitalism is not to protest, disrupt, critique, or détourne it, but to accelerate and exacerbate its uprooting, alienating, decoding, abstractive tendencies.
There is the distinction that EBay sellers get most of the revenue; EBay just takes a cut and thus doesn't have to have a huge amount of revenue itself.
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Doesn't this mean the company has to make more than $50 billion in revenue? Assuming a $50K wages a year, 1M jobs takes $50B to pay for.
Do the jobs have to be in the US?
Seems like an interesting idea, but my first thought is that you would want to find some way NOT to pay $50B a year... that would be a lot of profits. More profits than the vast majority of companies make.
It seems risky because it's hard to imagine getting to 1M jobs in less than 10 or 20 years. But in 10 or 20 years, computers will have gotten a lot better at the things that they are currently poor at. It's very hard to predict, but it will change rapidly.
Did EBay create 1M jobs? i.e. a significant number of people have made their entire living on Ebay. I think it might have been on the order of 1M, but not sure.
edit: http://investor.ebay.com/releasedetail.cfm?releaseid=170073
Ebay in 2005 claims 724K as primary or secondary source of income. If I had to guess it would be more like 72K "jobs", as 1/10th of those people might have Ebay as their primary source. That was 2005, but I don't think the order of magnitude has changed in the last 9 years.
This is pretty difficult to determine, if you want net jobs created, not merely people who currently make a living selling via eBay. For example, when a consignment store closes and that business moves to eBay, those are jobs shifting from one location to another, not really net-created jobs. Figuring out how to net that out is pretty complex, and I'm not sure solid enough data is available to determine to what portion of eBay's business are new transactions, versus existing merchants shifting sales channels.
This is perhaps even more clear with Amazon Marketplace, which has a number of booksellers making a living selling used books full-time there, but probably a number actually amounting to fewer employees than have been displaced by the same Amazon's impact on brick-and-mortar used book stores. Many of the full-time sellers are even direct continuations of such used-book stores, which have laid off most of their staff and "gone virtual", transitioning from meatspace to online storefronts. (This isn't to say that Amazon Marketplace doesn't produce other advantages, but creating net new jobs in the used-book sector is probably not one of them.)
A similar argument goes for eBay -- there are probably entrepreneurs out there who make a living in part because they can use eBay to buy things. This includes obvious stuff like resellers, but also less obvious stuff like a business that just uses eBay products as one of many inputs.
[1]http://www.salon.com/2014/06/01/help_us_thomas_piketty_the_1...
This is a request for startups with a particular feature. Funding them still needs to seem like a sufficiently good idea. Somehow, I don't imagine Sam leaping to fund slave labor(!), or even less-obviously-absurd things that only technically meet the requirement while not actually doing so in a meaningful way or having any chance at a profit.
There are a lot of areas where it makes sense to divide labor between humans and computers—we are very good at some things computers are terrible at and vice versa—and some of these require huge amounts of human resources.
As entrepreneurs it's our task to make computers better at the things that they aren't good at. It will require groundbreaking technology, a lot of work and incredible amounts of risk...but if not us, then who? We're blessed with the ability to make tools that make lives easier, we should be doing everything we can do make machines do more work so that humans can do less.
If Adam Smith was right and land, labor, capital is the relevant equation, then automation is a way to create nearly unlimited amounts of labor. Human brains are probably the most powerful computers to ever exist, it's unlikely that busy work is the best way to utilize them. A focus on creating jobs just exacerbates the social problems of capitalism. When people mention basic income, they usually also mention automation as a way to mitigate the loss in the labor force. If we push for more jobs instead of automating away jobs, we're just delaying the best outcome.
The most important question of the 21st century is "What can be automated?". Reducing the number of jobs is our great calling. Paradoxically, we'll have to employ at lot of smart people to make progress toward that goal. I think that's the real challenge, and it's one that we can rise to.
I'm not discouraging, but what startup even has the potential to hope to employ even 100000 individuals within the next 10 years?
[1] http://en.wikipedia.org/wiki/List_of_largest_employers_in_th...
Uber has created many jobs. Airbnb too.
[1] http://www.change.org/petitions/seattle-city-council-break-t...
to give a sense of scale, Wal Mart has 1.4 million or so workers in the US.
You cited taxi type services, but would not work at home call center work be similar? The in home medical care many receive qualifies, are there are other in home opportunities out there? Education perhaps, remote teaching and the like?
Honestly this "one million" number just comes off as a feel good statement, it reminds me of politician speak way way too much
The two ways to solve this problem would be to find a fundamentally new task that humans have never done before or to find a task that only some humans can currently do and make it do-able by many more people.
Perhaps so.
In the case where taxi medallions are in far shorter supply than what is actually required, but there is a negative externality - increased congestion and pollution, which is essentially what the medallions were created to control.
Likewise with AirBnB - while it would allow me to rent out a room or my house, those who own a condo or rent an apartment are likely breaching an agreement they never really read. Assuming the guests are polite (i.e. not noisy and not arriving at odd hours) the externalities are controllable, but the backlash against your neighbors running a hoteling service is quite understandable.
65% of Etsy sellers make less than $100/yr: http://www.slate.com/blogs/xx_factor/2013/11/08/etsy_economi...
Most people aren't very good at working with information beyond basic pattern recognition/recall and to some extent, human interaction. Most of the people who are good at either or both of these things are already gainfully employed.
In the material realm, we already produce enough food, clothing, housing, and computers to suit the needs of the public. We have more empty residences than homeless people. As technology advances in the imminent years we will become less reliant on people for producing these things--not more. Most significant material advances will come from knowledge work discoveries (e.g. larger capacity batteries), not from material work (assembling batteries by hand more quickly or using more people).
Dolphins do not derive their self-worth, happiness, or other aspects of their life from a "job." Perhaps humans are poised to become as advanced as they are?
Imagine if a million people had the freedom to experiment in whatever way they chose: to make music and art, to enjoy their lives without the approval of others as expressed by dollars of consumption. How much would the culture they create be worth?
I suppose one could create a new market which could have capacity for such jobs. That might still be in the best interest of a startup.
Seems like walmart and the Chinese energy companies are the only private employers of >1m humans.
Edit: Looks like the "List of largest employers" in the other comments confirms this with the military companies as the top employers. :-(
Not that it precisely fills this need, but look at things like Mechanical Turk. That's one way to think about this problem: rather than being a direct employer of millions, find ways to connect millions with useful employment doing jobs that we can't easily automate.
I'd be really surprised if Microsoft or Google didn't have this impact worldwide, though in Microsoft's case it might be tough to distinguish whether those are net jobs. (Though in fairness, in a very real sense, everyone at Google and Google's ecosystem owes their jobs to Bill Gates putting a computer on every desk and many homes.)
As the people employed may or may not work for you, and as a lot of companies displace other companies, having a million employees is neither necessary nor sufficient.
If there is a legal way for example for an employee that pays $10,000 in tax to employ someone at $10,000 and save that money then for each tax-payer a new job is being created. This can be for example be channeled via a non-profit (which scales via software) which would legally employ the individuals assign tasks to the individuals, provide training (which can employ trainers) help in seed money etc., basic health care and other similar services.
Another counter-intuitive idea, is to target high worth individuals, rather than low end individuals. Thousands of people are in jobs and interested in getting out of them to start a business. A Job + investment scheme in businesses that need financing might or might not work, but worth thinking. This keeps the individual employed and if the business expands would probably create another 2-5 jobs easily.
Franchising as a co-op rather than sending money to the mother ship, can easily scale in many sectors.
I think this is the greatest RFS ever and wish it success from the bottom of my heart. If no single scheme can achieve it, maybe 100 schemes can. It is not impossible.
context: in the recent election for the province of Ontario in Canada, Tim Hudak promised 1 million new jobs if he got elected. There were several questionable ways he arrived at that number, one of which was counting 8 years of a single new job as a new job.
What we need is not jobs. What we need is the ability for everyone to make a living they deem acceptable (TV, heat/AC, car, electricity, plumbing, internet). That's the real issue here...
certainly agree that's usually the way to get huge. and even the "hyper-ambitious" companies we fund have to start with going after a very small market--in fact, their first products mostly sound like toys, and that's a feature not a bug.
it's a mistake to build a startup that looks like a huge government project. it's also a mistake to not think about how to be a huge company one day. in fact, i remember one of the first meetings i ever had with airbnb. i told them how i thought that this silly-seeming thing they were doing could one day change the way most people travel. i think it seemed crazy even to them at the time.
Apparently, yes. Economic historians today argue that, throughout the eighteenth and nineteenth century, Enlightment-era notions such as "useful knowledge" and the Baconian concern with the "big scale" societal impact of scientific and technological work played a crucial role in "re-focusing" Europe's intellectual capital, as Joel Mokyr puts it [1]. In the twentieth century, seminal institutions like the OSRD, Bell Labs or (the old) DARPA --which as you know were behind most of the "truly revolutionary" inventions of the century-- had quite explicit utilitarian, "hyper-ambitious" mandates in their charters as directives --see for instance the writings of Vannevar Bush [2]. The development of modern organic chemistry and pharmacology was also quite explicitly motivated by tackling big societal problems, with many X-prize style prestigious awards for novel syntheses of crucial interest. And even the development of the internal combustion engine automobile by Benz [3] was quite explicitly motivated by his obsession to make it reliable and practical enough to fully supersede horse carriages and liberate cities from the iniquities of manure, which at the time was as "big scale thinking" as it gets.
Once you expand your perspective beyond the common troupes and political biases of the past 20-30 years, things start looking a bit different.
[1] http://www.crei.cat/conferences/RandD_and_Innovation_in_the_...
That's what we're doing with MindOps–an easy-to-use OCR API. Currently humans transcribe receipts, we automate it.
Walmart 2.1 million (United States)
McDonald's 1.9 million (including franchises) (United States)
China National Petroleum Corporation 1.6 million (People's Republic of China)
State Grid Corporation of China 1.5 million (People's Republic of China)
Indian Railways 1.4 million (India)
Hon Hai Precision Industry (Foxconn) 1.2 million (Taiwan)
Note that Indian Railways, the State Grid Corporation of China and the China National Petroleum Corporation are state-owned.
[1] http://www.telegraph.co.uk/news/obituaries/finance-obituarie...
Care for one another?
Quite a task.
Populate it.
There are jobs here, there will be jobs there.
A million will not be sufficient.
http://www.ycombinator.com/rfs/
Might have been a play on the acronym RFC (Request For Comments).