Automation job-killing expands in America

February 10, 2013

America's coming job-killing tsunami!

Nearly 25 million workers are either terribly under-employed or completely without jobs. Nearly four million jobs were lost in the aftermath of the housing bubble crash. Another several million jobs were lost to lower wage nations over the past couple of decades. Since the recession began our private sector has struggled to add new jobs...but has barely kept up with population expansion. We end up today with the smallest percentage of work-age Americans in the workforce since the early 80s. I wish we could look forward to some realistic good news regarding employment in our nation. We hear many business leaders and politicians telling us we have always come back from recessions and we'll do it again. What if they're wrong? Surely neither group has ever lied to us before?

We watched in horror in 2004 when the tsunami came crashing ashore in Thailand. The damage it caused was incredible. However, it wasn't long before the damage was repaired and tourists were once again back to enjoy this paradise.

The job-killing tsunami coming toward America will be much more destructive as it relentlessly unfolds at a steadily increasing pace. I am referring to the expected massive replacement of human labor by automation which is now in it's infancy, but is projected to expand at rates our leaders can't seem to understand and plan for.

Most companies naturally pursue cost-cutting in order to boost profitability and maintain competitiveness. One of the costliest items...human labor is always on the carving block, and is why millions of jobs left our shores. Experts say the explosive expansion of automation caused by robotics and software will replace human labor in even greater numbers in the future.

A segment shown on the CBS network's 60 Minutes on January 13, 2013 provided the chilling details. (www.60minutes.com) It was hosted by Steve Kroft, and featured interviews with two MIT professors, and other robotics experts. The professors shared their views of the changing future of employment in America, and throughout the world, as the forces of robotics and software increasingly and relentlessly replace human workers.

One professor said the U.S. economy has mostly recovered from the bursting housing bubble by every measure...except for new job creation. He said historically new technology has always destroyed old jobs while simultaneously creating new ones...but he predicts future automation will replace so much human labor, replacement jobs won't be able to keep pace.

Anyone middle aged or older can easily see the many different jobs now replaced by technology. Bank tellers replaced by ATM’s, airport ticket counter clerks by automated kiosks, and jobs formerly held by receptionists, telephone operators, and secretaries by voice-recognition software. Robots in hospitals are delivering mail, picking up soiled laundry, filling and delivering drug orders, even helping surgeons perform complicated surgeries. Hospital administrators hasten to add these robots are only supplemental to their staffs, not to replace them. Hmm....sounds like what most chain grocers tell their check-out clerks as they install self-check out systems!

The robotic application which most impressed these experts is happening in huge distribution centers now operating with very little human labor...instead relying on robots.

One robot-maker said his machine would replace one and a half humans. Another said his simple machine can be quickly programmed to perform repetitive tasks formerly done by humans, but at a cost of only $3.40 per hour. Kroft asked if this low cost could bring a job back from China...the answer was yes. However, while the work might come back, the resulting jobs here would be largely filled by robots.

The program showed super-computers now self-improving the automation processes. In other words, computers are teaching themselves how to be more efficient...and replace even more human labor!

One professor said we are only at the very earliest stages of this new era in which machines/software will do almost all work now being done by humans. In fact, he said, “we haven't seen anything yet”. When Kroft asked him the implication for future human jobs, his answer: “That's the 64 thousand dollar question.”

America may well continue to have a healthy economy in terms of every financial measure. However, if this growth is driven increasingly by automation, where will jobs come from? How will average citizens earn money needed to buy goods?

Should the government intervene? Shall we just trust the markets to decide? What will the growing numbers of jobless say? Will they calmly accept others telling them to just suck it up and pull themselves up by their bootstraps...especially when boots are increasingly worn by robots? How will our nation, already facing a mountain of debt, find the means to provide the social programs needed?

This coming tsunami of automation-caused job losses will likely make the housing bubble aftermath seem like the good old days!

Meanwhile our leaders prepare for the next round of debt-ceiling battles. We know how it will turn out...because we could write the script. Their failure to unite in making job creation their top priority is unforgivable. As I finished writing the last sentence, a foreboding chill ran through me... because it's never going to happen!

These are my opinions. What do you think?

Mike Tower

Please visit the blog of my good friend LeRoy Goldman:  Lee's Political Opinions

and the website for an organization we co-founded:  Citizens Against Politics As Usual