Robots and Jobs – the Bet

Keith Ablow, a Fox News analyst, asked Should Trump stop robots from stealing jobs?

Economist Don Boudreaux responded:

It’s true that the pace of introducing new labor-saving techniques has magnificently quickened in the past two hundred years.  This fast pace continues today.  Yet still we encounter no evidence that labor-saving techniques permanently increase unemployment.

You’ll reply “This time is different!”  Perhaps, but I doubt it.  And I’m so confident in my prediction that I’ll put $10,000 of my own my money where my mouth is.

Terms of the wager are at the Boudreaux link. I’m not sure if the bet has been accepted or not.

Meanwhile, here is Bill Gates, suggesting that robots should be taxed.  Left undefined, at least in this interview, is a question of Exactly What is a Robot?  Is a CNC machine tool a robot?  I’d say it absolutely is, as was the case with earlier numerically-controlled machine tools that became pretty common in the 1970s and 1980s.  How about an automated teller machine in a bank?  And what about “robots” that have no direct physical incarnation but are purely software, such as the office productivity software that accounted for a huge portion of Microsoft’s success?  It was largely Microsoft Word and similar software that made secretaries an endangered species in most organizations.  (Can you imaging the lobbying, litigation, and regulatory struggles that would surround this definitional issue if politicians were to take Bill’s proposal seriously?)

The proposal also ignores that fact that the United States is not the entire world–taxing robots here  would harm our competitiveness vis-a-vis those countries pursuing no such policy.  (Which would clearly include China.)  The only way to make a US-only anti-robot policy ‘work’ would be to establish very high tariff barriers.

See also my posts Attack of the Job-Killing Robots and Attack of the Job-Killing Robots Part 2.   I hope to soon complete Part 3 of the series, which will focus on automation technologies and their impact in the post-WWII era.

ENIAC Anniversary

With all the current discussion about robotics and artificial intelligence, this seems like an anniversary worth noting:  the ENIAC (Electronic Numerical Integrator and Calculator) was formally announced on February 15, 1946.  (Or maybe it was February 14.)  Originally developed to compute artillery trajectories, it was sufficiently general in its design that it could be programmed to address other kinds of problems as well.  The programming was originally done with patch cords, but soon a sort of stored-programming approach was developed wherein the patch cord layout remained the same and the program was entered via an array of rotary switches.

See also Robot Mathematician Knows All The Answers, about the Harvard Mark I, a slightly earlier computer that was electromechanical rather than purely electronic in its operation, and a post about the Naval Ordnance Research Calculator, a ‘supercomputer’ of 1954.

I wonder if these early computers would have made such a strong popular impression if they had not been so physically large.

Worthwhile Reading

How the 16th century invented social media

Virginia Postrel thinks that now is the time for big-box stores to embrace the 19th century

Is it possible to make American mate again?

Related to the above:  mapping the geographical patterns of romantic anxiety and avoidance

Maybe also related:  sex doesn’t sell anymore, activism does

PC oppression and why Trump won

Theory and practice: an interesting Assistant Village Idiot post from 2010

Learning about effective selling from a surfer dude

Here’s a guy who says: I help create the automated technologies that are taking jobs…and I feel guilty about it

After discussing his concerns about automation-driven job losses, he goes on to say “I feel even worse when I hear misleading statements about the source of the problem. Blaming China and NAFTA is a convenient deflection, but denial will only make the wrenching employment dislocation for millions all the more painful.”

I’ve seen this assertion–“offshoring doesn’t matter because Robots”–and it doesn’t make a whole lot of sense to me.  It should be obvious that both factors play a role; there’s no need for a single-variable explanation.  (Actually, offshoring-driven job losses and automation-driven job losses are somewhat less than additive in their effect, since automation generally makes US-based production more relatively attractive.)

Here’s an argument that the next big blue-collar job is coding.

What if we regarded code not as a high-stakes, sexy affair, but the equivalent of skilled work at a Chrysler plant?  Among other things, it would change training for programming jobs—and who gets encouraged to pursue them. As my friend  Anil Dash, a technology thinker and entrepreneur, notes, teachers and businesses would spend less time urging kids to do expensive four-year computer- ­science degrees and instead introduce more code at the vocational level in high school….Across the country, people are seizing this opportunity, particularly in states hit hardest by deindustrialization. In Kentucky, mining veteran Rusty Justice decided that code could replace coal. He cofounded  Bit Source, a code shop that builds its workforce by retraining coal miners as programmers. Enthusiasm is sky high: Justice got 950 applications for his first 11 positions. Miners, it turns out, are accustomed to deep focus, team play, and working with complex engineering tech. “Coal miners are really technology workers who get dirty,” Justice says.

I’m reminded of two things that Peter Drucker said in his 1969 book The Age of Discontinuity.  In attacking what he called ‘the diploma curtain’, he wrote “By denying opportunity to those without higher education, we are denying access to contribution and performance to a large number of people of superior ability, intelligence, and capacity to achieve.”

But also, Drucker wrote, in his discussion of the Knowledge Economy:

The knowledge worker of today…is not the successor to the ‘free professional’ of 1750 or 1900.  He is the successor to the employee of yesterday, the manual worker, skilled or unskilled…This hidden conflict between the knowledge workers view of himself as a ‘professional’ and the social reality in which he is the upgraded and well-paid successor to the skilled worker of yesterday, underlies the disenchantment of so many highly educated young people with the jobs available to them…They expect to be ‘intellectuals.’  And the find that they are just ‘staff.’

Indeed, many jobs that have been thought of as ‘professional’ and ‘white collar’…programming, financial analysis, even engineering…are increasingly subject to many of the stresses traditionally associated with ‘blue collar’ jobs, such as layoffs and cyclical unemployment.  As a higher % of the corporate cost structure becomes concentrated in jobs which are not direct labor, it is almost inevitable that these jobs will be hit increasingly when financial problems make themselves felt.

Drucker’s second point, which I think is very astute, is somewhat orthogonal to the coal-miners-becoming-coders piece, and probably deserves it own post for discussion.  Regarding the question of non-college-educated people becoming programmers (of which there has long already been a fair amount), the degree to which succeeds is to some degree coupled with the whole question of h-1b visa policy, and trade policy in general as it relates to offshoring of services.

Freedom, the Village, and the Internet (rerun)

(Hearing in  a town this size, by John Prine and Delores Keane, reminded me of this 2013 post–rerun here, with some edits and a special musical bonus added at the end.)

I’ve reviewed two books by German writer Hans Fallada:  Little Man, What Now?, and  Wolf Among Wolves  (the links go to the reviews), both of which were excellent. I’ve also read his novel  Every Man Dies Alone, which is centered on a couple who become anti-Nazi activists after their son Ottochen is killed in the war…it was inspired by, and is loosely based on, the true story of  a  real-life couple  who distributed anti-Nazi postcards and were executed for it.

I thought this book was also excellent…the present post, though, is not a book review, but rather a development of some thoughts inspired by a particular passage in the story.

Trudel, who was Ottochen’s fiancee, is a sweet and intelligent girl who is strongly anti-Nazi..and unlike Ottochen’s parents, she became an activist  prior  to being struck by personal tragedy: she is a member of a resistance cell at the factory where she works.  But she finds that she cannot stand the unending psychological strain of underground workmade even worse by the rigid and doctrinaire man (apparently a Communist) who is leader of the celland she drops out. Another member of the cell, who has long been in love with her, also finds that he is not built for such work, and drops out also.

After they marry and Trudel becomes pregnant, they decide to leave the politically hysterical environment of Berlin for a small town wherethey believelife will be freer and calmer.

Like many city dwellers, they’d had the mistaken belief that spying was only really bad in Berlin and that decency still prevailed in small towns. And like many city dwellers, they had made the painful discovery that recrimination, eavesdropping, and informing were ten times worse in small towns than in the big city. In a small town, everyone was fully exposed, you couldn’t ever disappear in the crowd. Personal circumstances were quickly ascertained, conversations with neighbors were practically unavoidable, and the way  such conversations could be twisted was something they had already experienced in their own lives, to their chagrin.

Reading the above passage, I was struck by the thought that if we are now living in an “electronic village”…even a “global village,” as Marshall McLuhan put it several decades ago…then perhaps that also means we are facing some of the unpleasant characteristics thatas Fallada notescan be a part of village life. And these characteristics aren’t something that appears only in eras of insane totalitarianism such as existed in Germany during the Nazi era. Peter Drucker, in  Managing in the Next Society, wrote about the tension between liberty and community:

Rural society has been romanticized for millenia, especially in the West, where rural communities have usually been portrayed as idylic. However, the community in rural society is actually both compulsory and coercive…And that explains why, for millenia, the dream of rural people was to escape into the city.  Stadluft macht frei  (city air frees) says an old German proverb dating back to the eleventh or twelfth century.

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Where’s The Lane?

I recently traded in my old Acura MDX for a new one. What a long, long way we have come in the 7 years since I purchased a new vehicle. I now have an air conditioned seat, something I am looking forward to using this Spring and Summer. I also have a heated steering wheel now, which is great during Winter. Quite the creature comfort.

It also has a feature called Auto-Idle Stop that you can enable and disable that shuts the car off at a stop to save gas. The Acura dealer says that is will save a mile a gallon. At first I didn’t like it, but now I am used to it. I remembered it from when I was in a Prius cab once. When you take your foot off the brake, the car fires up and off you go. While you are stopped, all of the climate control and audio/whatever else you have on is still functional. It automatically turns back on after around a minute sitting there if you haven’t moved. I have no clue how this actually saves you gas but if they say it does, I guess they can’t really lie about it.

Outside of all of the comfort things, the new vehicle is a technological powerhouse. I have had it for almost a month now and am still figuring out all of the features and tech stuff. It has 16 gig of memory to store music onboard. I don’t use that much since I love my XM, but there it is if you want it.

Of the greatest interest to me are the next steps auto manufacturers have made to get everyone used to the idea of the inevitable autonomous vehicle. Three things work in concert on my vehicle. They are Adaptive Cruise Control (ACC), Lane Keeping Assist System (LKAS) and Lane Departure Warning (LDW). At first I turned all of this stuff off, but decided to one day read the manual (I know) to understand how it all works. It is interesting to say the least.

ACC is basically “smart” cruise control. You set your cruise and it will keep the speed, but will also compensate for cars in front of you. You can set the distance that you prefer between your car and the car in front of you (there are four distances to choose from). In the city, I choose the closest distance so as not to clog traffic. The car will actually go all the way down to zero, braking at a light, and will start moving again when the car in front moves forward. There is a bit of a delay when you re-start, so you may look like you have no idea what you are doing, but to heck with everyone else, you don’t have to accelerate or brake and they do. Oh yes, the Auto-Idle Stop feature works with this as well, but you have to hit the accelerator to resume again if you are Auto-Idle Stopped with the ACC in charge.

LDW is, from what I have figured out, just a warning system. It wiggles the steering wheel and shows a display when it feels you are out of the lane.

LKAS is where the rubber really hits the road. When you enable this along with the ACC, the car literally drives itself. LKAS keeps you centered in the lane at whatever speed you are going. I have taken my hands off the wheel, but there are apparently sensors in the wheel because after a few seconds, the car says “you have to drive” and shuts down the auto systems. So just a light pressure on the wheel is all you need and you can let the car do the work. Sometimes the delay takes a bit and it would seem to the car behind you that you are drunk driving since you are weaving back and forth a bit in the lane. This typically happens when you are on a curved road. It isn’t perfect, but when the road is straight, it works very well.

But.

The cameras for all of this are only as good as the ROAD MARKINGS. We had a snow storm recently and my car was caked with snow and ice and the car just said on the display “cameras blocked” and you are on your own. In addition, I live in rural Wisconsin, just outside of Madison. In the city, there are much better lane markings. In the country, the roads have NONE. No smart driving for you in the country, although the ACC always works wherever you are as long as the camera isn’t blocked by snow. Even in the city, the lane markings deviate and/or are in bad shape in areas, and the car will beep and tell you that “tough stuff, you have to drive”, we can’t see the lane. This means that you have to pay attention because at times, you can see the lane markings, but the cameras can’t. There is a part of the display that lets you know if the camera can see the lane markings. I haven’t been on the interstate with it yet, but will soon and look forward to seeing what the car can do in that venue. I assume it will work great.

All in all, when I figure out everything, this new vehicle will make my hour plus a day in the car a much more pleasant experience. Without proper lane markings, however, or unless and until we have lightning speeds with GPS, I don’t see fully autonomous vehicles coming for a bit. Which gets me to thinking I should probably look into investing in companies that manufacture lane marking equipment and paint, but that is certainly grist for another post.

Cross posted at LITGM.