Automation Improves Safety

The airports with their self-check-in kiosks and restaurants full of iPads are staffed by thousands of human workers (most using mano machine can do? Or, like operating an elevator and driving a car, is it because at first we don't trust machines to do a job where lives are at risk? Elevators became much safer as soon as the human operators were replaced. The human-hating Skynet from the Terminator movies could hardly do a better job of killing people than we do killing ourselves with cars. H...

 Knowledge Work

The growing importance of knowledge as an economic resource reflects the fact that, as economies and production technologies develop, they become ever more complex and specialized, leading to increasing coordination costs. In the language of information economics, the organizational or informational task of coordinating the diverse steps in the productive chain grows, as the number of transactions within and among productive units increases (Joncher, 1983). Logically, the increasingly complex...

 Adapting to Obsolescence

Jobs are lost to automation, innovation, obsolescence, the moving finger of fate. The carriage industry was devastated by the automobile, and the men who made surreys and broughams and hansoms had to learn something new; the Pullman porter union was hit hard by the advent of air travel, and the porters sent their sons to college; the newspaper business was hit hard by Craigslist. Too bad for us. I know gifted men who were successful graphic designers until computers came along and younger pe...

 Kodak, Instagram, and Automation

Here’s a current example of the challenge we face... At the height of its power, the photography company Kodak employed more than 140,000 people and was worth $28 billion. They even invented the first digital camera. But today Kodak is bankrupt, and the new face of digital photography has become Instagram. When Instagram was sold to Facebook for a billion dollars in 2012, it employed only 13 people. Where did all those jobs disappear? And what happened to the wealth that all those middle-clas...

 Keynes Predicts Unemployment from Automation

We are being afflicted with a new disease of which some readers may not yet have heard the name, but of which they will hear a great deal in the years to come—namely, technological unemployment. This means unemployment due to our discovery of means of economising the use of labour outrunning the pace at which we can find new uses for labour.