Globalization and trade agreements have been blamed for costing millions of Americans well-paying jobs. But a far greater force in the gutting of middle-class life in the United States has been automation, which has replaced well-paid workers with robots and digital platforms. The greater efficiency fuels economic growth, produces cheaper products and makes life’s task easier. But in the process, many are left poorer and less secure.
What can be done to limit the harm and spread the benefits of automation?
Easing the Pain of Automation
New York Times
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation
Invest in Technology With Social Benefits
by Arun Sundararajan
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/invest-in-technology-with-social-benefits
Artificial intelligence can also expand human capabilities rather than substituting for them.
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Lack of Demand Is the Economy’s Problem, Not Automation
by Dean Baker
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/lack-of-demand-is-the-economys-problem-not-automation
If we generated more demand through larger government deficits or smaller trade deficits we would have more jobs.
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Increase Top Tax Rates to Cut Middle-Class Taxes
by Maya Eden
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/increase-top-tax-rates-to-cut-taxes-to-middle-class-workers-hurt-by-automation
Redistributing gains from beneficiaries of technology toward its victims is a reasonable way to spread the benefits of progress.
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A Universal Basic Income Would Insure Against Job Loss
by Andy Stern
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/a-universal-basic-income-would-insure-against-job-loss
It would supplement not substitute for work, adding consumer power and helping people start businesses, get retrained or pay tuition.
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Companies Need to Pay to Train Potential Workers
by Jerry Kaplan
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/companies-need-to-pay-to-train-potential-workers
Banks loan money to buy homes based on an appraisal of that home. Worker retraining should be a similar type of investment opportunity.
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Incentives for Entrepreneurs and Subsidies for Low Wages
by Andrew McAfee
http://www.nytimes.com/roomfordebate/2016/10/04/easing-the-pain-of-automation/incentives-for-entrepreneurs-and-subsidies-for-wages-can-cushion-automations-blows
Give the economy every possible chance to create new types of good jobs, but we’re far from needing large-scale wealth redistribution.