Writing in the recent McKinsey quarterly, W Brian Arthur put it this way: “Offshoring in the last few decades has eaten up physical jobs and whole industries, jobs that were not replaced. The current transfer of jobs from the physical to the virtual economy is a different sort of offshoring, not to a foreign country but to a virtual one. If we follow recent history we can’t assume these jobs will be replaced either.”
An economy at full employment has lost jobs which weren’t replaced, has it?
Is it actually necessary to be an ignorant twat to get a job at McKinsey?
Larry Elliot’s also rather failing:
The experience of past industrial revolutions suggests that resisting technological change is futile.
Indeed so. Then:
But there are going to be middle-class casualties too: machines can replace radiologists, lawyers and journalists just as they have already replaced bank cashiers and will soon be replacing lorry drivers. Clearly, it is important to avoid repeating the mistakes of the past. Any response to the challenge posed by smart machines must be to invest more in education, training and skills. One suggestion made in Davos was that governments should consider tax incentives for investment in human, as well as physical, capital.
Still this won’t be sufficient. As the Institute for Public Policy Research has noted, new models of ownership are needed to ensure that the dividends of automation are broadly shared. One of its suggestions is a citizens’ wealth fund that would own a broad portfolio of assets on behalf of the public and would pay out a universal capital dividend. This could be financed either from the proceeds of asset sales or by companies paying corporation tax in the form of shares that would become more valuable due to the higher profits generated by automation.
Those past technological revolutions didn’t require such things and we’re all vastly richer as a result of those past technological revolutions. Thus we need a different reaction this time because?