They toil not, neither do they spin…

May 14th, 2016
by Chris

I see that FiveThirtyEight has caught on to the fact that manufacturing jobs will never return. Sadly, they seem to think that the solution is to create jobs in service industries, and that’s a problem.

The thing is, manufacturing jobs are the easiest to automate; as the article notes, manufacturing is actually returning to the USA, but it’s largely automated and doesn’t provide the number of jobs it used to. Low level clerical jobs are the next easiest; very many of those have similarly disappeared with the advent of computerised workplaces. Customer service is in the process of going the same way; my bank (for instance) has successfully persuaded customers to do most of their banking online, where computer systems handle the work which a load of clerks and counter staff would once have done, and I hear that even burger flipping is in danger, as automated short-order cooks are being trialed at the moment. In the office, vending machines have largely replaced the tea lady.

When I retired from the law, the need for secretaries had diminished somewhat, but also I noted that expert systems were starting to take over some of the work which qualified lawyers had previously done. There are now surgical robots – admittedly these are currently remotely operated by real surgeons, but it is only a matter of time… Professional jobs are by no means safe either.

How about the entertainment industry? There is still going to be a huge demand for people singing, acting, doing variety turns, surely? Well, to an extent that’s true, though the popularity a few years ago of Max Headroom and the ubiquity of CGI makes me wonder how long it is going to be before we have the first completely computer-generated “live action” film or television. However, whereas 100 years ago, there were performers in every town (and often every pub or bar) churning out music and drama, now the use of TV and film means that only relatively few performers actually get to make a decent living. Everyone wants to listen, say, to David Bowie or Prince, not to their local Joe Bloggs or Fred Smith. The market for actual performers is much more limited than it once was, and is likely to shrink further, and even the very popular are now having difficulty with the internet getting round copyright so that significant parts of their output ends up free.

Of course, these last two categories require substantial natural ability as well as training, and even if they were boom areas, most of the population would be unlikely to be able to do the jobs as one would wish them done. I pause for a moment for a sideswipe at government policy for some time – it is pointless expanding education willy-nilly in the apparent belief that you can train anyone to be a brain surgeon if you take enough time and they are dedicated enough, and that is just not true. At the moment we are merely piling on courses for the sake of courses to “qualify” people for jobs which they could learn by doing them in a couple of weeks.

We are progressively making the majority of humanity redundant.

Or, at least, we are making them redundant as workers. Our capitalist system is predicated on there being a vast class of consumers, as otherwise there is no market for all the goods and services. The redundant, of course, do no work and therefore do not get paid – and therefore can’t consume. Eventually, the whole system will break down – and I think there are significant signs that it is doing that already.

It has to be time for us to break the linkage between money and work. Efficiency and automation mean that we can produce enough to supply even the vast population we now have, but not to keep them in work. Time, I think, to look very closely at the concept of a national guaranteed income, or an “universal income”.

There will be a few collateral effects of this. One is that, provided with enough income for the basic necessities of life, no-one need take a job who does not want it. Without the need for labour unions, suddenly workers will have a negotiating strength which they have always historically lacked. The conditions (including pay) of work will have to be sufficient to entice people to do the work. Granted, there need be no minimum  wage – people may find out that a job well done is satisfaction in and of itself, or that even a very small additional discretionary income is worth the effort. Those who wish to turn their minds to art or literature will no longer need to starve in a garret; the inventor or innovator will be free to put in the long hours working out their idea into something practical without the fear of destitution.

Another is that companies will be forced to consider that having people able to buy their products is a good in and of itself; this might just persuade them that in order to gain access to a market, they would need to pay tax. Governments, on the other hand, would no longer need to beg, plead, cajole and bribe companies into employing workers in their countries. Instead, they need only point out that “we have a market of 60 million people” (or whatever is the current figure for your population) to induce a company to come and trade – and pay taxes. They may well, of course, also want to site their manufacturing in the country where they trade; after all, there will be no minimum wage, and lower transport costs!

I will continue looking with huge interest at Switzerland and Holland, which seem to the the countries most likely to be the first to implement such a scheme.

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