Legionthecat
Double Platinum Catroll
Automation does not kill job growth you fucking luddite, it stimulates job growth in the service sector where jobs lost in manufacturing are replaced.
The Luddite fallacy is the simple observation that new technology does not lead to higher overall unemployment in the economy. New technology doesn’t destroy jobs – it only changes the composition of jobs in the economy.
Why do Economists say that new technology does not cause unemployment?
Firstly, rapid technological change may cause some short-term temporary unemployment. However, economic theory suggests that jobs lost as a result of technological change will be created in different, new industries.
When automated looms were built, it became cheaper to manufacturer clothes. Therefore, consumers buying clothes would have experienced lower prices, and therefore, after buying the same amount of clothes, they would have more disposable income to buy other goods. For example, they may now be able to afford a train ticket to go and buy a silk scarf in town.
With technological change, we see increased demand for new products; therefore new jobs are created on the railways and shops selling more luxury items, such as scarves and hats.
Also, there will be some jobs created in the building of the automated looms.
With new technology, firms selling clothes will also be more profitable. This profit may be used to fund future investment and job creation.
Over time, improved technology would mean that even automated looms become outdated. New technology may enable clothes to be mass produced with even fewer workers. Again, this would cause a relative fall in the price of clothes, and consumers would have more disposable income to buy goods, but also spend on labour intensive services.
This is what has happened over the past 100 – 200 years – new Technology has enabled the economy to move towards a more service sector based economy. Lower costs of manufactured goods, enables us to be able to afford a wider range of goods and services.
http://www.economicshelp.org/blog/6717/economics/the-luddite-fallacy/
What you are missing from the OP is that service jobs are being replaced by computers and kiosks at the same pace or maybe even faster than in manufacturing.
The laid off factory worker whose job is replaced by a robot will find that when he applies at Burger King, that that a kiosk will be asking if you want to supersize your meal and he won't be needed there either.
Have you flown lately? Airlines hire only a fraction of the service personnel they did only a few years ago with automatic check in, baggage check and ticket selling kiosks all over the places where we used to wait in line at the service counter.
Last edited:
