Much like free trade, technological unemployment is an issue where the consensus opinion among economists diverges quite sharply from that of the general population.
Enough people think that “robots taking our jobs” is something bad that I’ve seen a fair number of memes like this:
But like almost all economists, I think that self-checkouts, robots, and automation in general are a pretty good thing. They do have a few downsides, chiefly in terms of forcing us to make transitions that are costly and painful; but in general I want more robots, not fewer.
To help turn you toward this view, I offer a parable.
Suppose we have a family, the (stereo)typical American family with a father, a mother, and two kids, a boy named Joe and a girl named Sue.
The kids do chores for their allowance, and split them as follows: Joe always does the dishes, and Sue always vacuums the carpet. They both spend about 1 hour per week and they both get paid $10 a week.
But one day, Dad decides to buy a dishwasher. This dramatically cuts down the time it takes Joe to do the dishes; where he used to spend 1 hour washing dishes, now he can load the dishwasher and get it done in 5 minutes.
- Mom suggests they just sell back the dishwasher to get rid of the problem.
- Dad says that Joe should now only be paid for the 5 minutes he works each week, so he would now be paid $0.83 per week. (He’s not buying a lot of video games on that allowance.)
- Joe protests that he gets the same amount of work done, so he should be paid the same $10 for doing it.
- Sue says it would be unfair for her to have to work so much more than Joe, and has a different solution: They’ll trade off the two sets of chores each week, and they should of course get paid the same amount of money for getting the same amount of work done—$10 per kid per week, for an average of 32.5 minutes of work each.
Which of those solutions sounds the most sensible to you?
Mom’s solution is clearly the worst, right? It’s the Luddite solution, the one that throws away technological progress and makes everything less efficient. Yet that is the solution being offered by people who say “Don’t use the self-checkout machine!” Indeed, anyone who speaks of the virtues of “hard work” is really speaking Mom’s language here; they should be talking about the virtues of getting things done. The purpose of washing dishes is to have clean dishes, not to “work hard”. And likewise, when we construct bridges or make cars or write books or solve equations, our goal should be to get that thing done—not to fulfill some sense of moral obligation to prove our worthiness through hard work.
Joe’s solution is what neoclassical economics says should happen—higher productivity should yield higher wages, so the same amount of production should yield the same pay. This seems like it could work, but empirically it rarely happens. There’s also something vaguely unfair about it; if productivity increases in your industry but not in someone else’s, you get to cut your work hours dramatically while they are stuck working just as hard as before.
Dad’s “solution” is clearly terrible, and makes no sense at all. Yet this is what we actually tend to observe—capital owners appropriate all (or nearly all) the benefits of the new technology, and workers get displaced or get ever-smaller wages. (I talked about that in a recent post.)
It’s Sue’s solution that really seems to make the most sense, isn’t it? When one type of work becomes more efficient, people should shift into different types of labor so that people can work fewer hours—and wages should rise enough that incomes remain the same. “Baumol’s disease” is not a disease—it is the primary means by which capitalism raises human welfare. (That’s why I prefer to use the term “Baumol Effect” instead.)
One problem with this in practice is that sometimes people can’t switch into other industries. That’s a little hard to imagine in this case, but let’s stipulate that for some reason Joe can’t do the vacuuming. Maybe he has some sort of injury that makes it painful to use the vacuum cleaner, but doesn’t impair his ability to wash dishes. Or maybe he has a severe dust allergy, so bad that the dust thrown up by the vacuum cleaner sends him into fits of coughing.
In that case I think we’re back to Joe’s solution; he should get paid the same for getting the same amount of work done. I’m actually tempted to say that Sue should get paid more, to compensate her for the unfairness; but in the real world there is a pretty harsh budget constraint there, so we need to essentially pretend that Dad only has $20 per week to give out in allowances. A possible compromise would be to raise Sue up to $12 and cut Joe down to $8; Joe will probably still be better off than he was, because he has that extra 55 minutes of free time each week for which he only had to “pay” $2. This also makes the incentives work out better—Joe doesn’t have a reason to malinger and exaggerate his dust allergy just to get out of doing the vacuuming, since he would actually get paid more if he were willing to do the vacuuming; but if his allergy really is that bad, he can still do okay otherwise. (There’s a lesson here for the proper structure of Social Security Disability, methinks.)
But you know what really seems like the best solution? Buy a Roomba.
Buy a Roomba, make it Sue’s job to spend 5 minutes a week keeping the Roomba working at vacuuming the carpet, and continue paying both kids $10 per week. Give them both 55 minutes more per week to hang out with their friends or play video games. Whether you think of this $10 as a “higher wage” for higher productivity or simply an allowance they get anyway—a basic income—ultimately doesn’t matter all that much. The point is that everyone gets enough money and nobody has to work very much, because the robots do everything.
And now, hopefully you see why I think we need more robots, not fewer.
Of course, like any simple analogy, this isn’t perfect; it may be difficult to reduce the hours in some jobs or move more people into them. There are a lot of additional frictions and complications that go into the real-world problem of achieving equitable labor markets. But I hope I’ve gotten across the basic idea that robots are not the problem, and could in fact be the solution–not just to our current labor market woes, but to the very problem of wage labor itself.
My ultimate goal is a world where “work” itself is fundamentally redefined—so that it always means the creative sense “This painting is some of my best work.” and not the menial sense “Sweeping this floor is so much work!”; so that human beings do things because we want to do them, because they are worth doing, and not because some employer is holding our food and housing hostage if we don’t.
But that will require our whole society to rethink a lot of our core assumptions about work, jobs, and economics in general. We’re so invested in this idea that “hard work” is inherently virtuous that we forgot the purpose of an economy was to get things done. Work is not a benefit; work is a cost. Costs are to be reduced. Puritanical sexual norms have been extremely damaging to American society, but time will tell if Puritanical work ethic actually does more damage to our long-term future.