http://www.npr.org/blogs/money/2015/02/05/382664837/map-the-...
Taxi driving is one of the jobs many immigrants end up doing in a new town. If we automate the taxi, what do we do with all the taxi drivers?
According to mainstream economics, jobs are not an externality (although they are during a recession). The total amount of money to go around after an efficiency increasing change, will be greater. With taxation, this means that in theory everyone can be made better off. In practice, the truckers will be worse off, but you could at least arrange taxes so that the percentage of people earning less than X decreased, for all X.
Then the only argument left is that the change is somehow unfair to truckers. But that viewpoint unfairly privileges the status quo.
One thing that is true is that the adjustment period will be hard.
That’s no way to go about this. Obviously, not increasing efficiency would be bone-headed, but it is centrally important to create a socially acceptable transition for those (and any people) who are affected by this. That is currently not happening and hasn’t been happening in the past.
The luddites were right. The changes industrialization brought really did suck for them and for them it really didn’t get any better ever, until they died. From that point of view smashing the machines is entirely rational, even if those same machines created tremendous, unimaginable wealth. Obviously I’m not advocating smashing machines here, but, you know, we do have to find workable solutions for the luddites.
I mean, I’m more than happy to consider solutions to this problem that tackle the problem of unemployment as a whole, not just this small part we just considered. I think finding a general solution would definitely be even better and thinking about this problem (e.g. basic income) definitely often tends to consider unemployment as a whole.
My position is that even with the current welfare system, technologies that increase productivity, but make some people unemployed, are still good from a utilitarian perspective. The trickle down effect (including through the existing welfare system), which benefits the entire poor population, makes up for the negative effect on the newly unemployed.
EDIT: as always, I have no problem with downvotes for my other opinions, but it's really sad to see downvotes for economic orthodoxy. If anyone reading this downvoted me, please educate yourself on mainstream economic thinking. You don't want to be remembered as an anti-vaccination advocate.