How Artificial Intelligence – AI, Automation and Robotics can affect Unemployment?
Today, technologies like robotics, artificial intelligence, and machine learning may impact the workforce to massive unemployment. Moving the workforce from physical to automated labor is moving society to the edge of a major disruption. I think this disruption will completely redefine the way businesses compete today. This is going to put a lot of stress on both societies and the economy. “It is important to realize technology does not have to cause immediate job destruction to create significant future unemployment. The U.S. economy needs to generate more than 100,000 new jobs per month just to keep up with population growth. As a result, anything that significantly slows the rate of ongoing job creation could have a significant impact over the long term.” (Ford).
As technologies continue to accelerate, fewer people may be necessary for the workforce. The problem is bigger than just automating in manufacturing, it will dramatically reduce positions like underwriters, drivers, farming, fast food, mail services, and many more positions.
New technologies are affecting people’s ability to earn a living. In an MIT Research Brief, “Race Against the Machine”, Andrew McAfee and Erik Brynjolfsson stated that with the advance in technology computers can do it all.
Will people work if they have economic security? That is a very good question. The research I will go into shows that people in fact do. But the other thing we have to ask ourselves is what constitutes work. Some people will always innovate and produce, and I would help the rest of the people pay for their needs (Brynjolfsson)
How can a UBI Model Help
As we discuss some possible recommendations on improving the rate and quality of organizational innovation and increasing human capital investment to reduce unemployment, we look into providing a basic income to people like Universal basic income. Universal basic income (UBI) is a model that fixed amount given by a government to all citizens regardless of income or work status to pay for the basic necessitates living to include expenses like housing, food, education, and healthcare. The amount given is based on different models and differs from country to country.
Accordingly to Bertrand Russell, a British philosopher stated “that a certain small income, sufficient for necessaries, should be secured to all, whether they work or not, and that a larger income – as much larger as might be warranted by the total amount of commodities produced – should be given to those who are willing to engage in some work which the community recognizes as useful” (Russell). Thus with UBI, no one is poverty-stricken, but everyone has the positive incentive to work with using a UBI model, and with technology continuing to flourish, innovation will broadening and deepening within individuals and society more profound all around the world. Society will refine the worker to allow them to be more innovative and share in the profit of all production. We are free up to do more innovative things for humankind.(Brynjolfsson)
Some critics state that disadvantages and concerns on UBI implementations can require significant fiscal costs, thus requiring a complete restructuring of the taxation, social insurance, and benefits. There may also be some misuse of basic income for drugs and gambling. The biggest issue is that governments may not be capable to secure funding for these UBI payments. In addition, some people say there may be a disincentive to work (International Monetary Fund), however, as Voltaire stated: “Work saves us from three great evils: boredom, vice, and need.” (Winfree) Overall people will have a willingness to work and give back to society.
In the International Monetary Fund (IMF) report, they have found many advantages of UBI, which include a simple welfare system, eliminating leakage, wastage, administrative efficiency, more equal system as all citizens are eligible, reduction in or removal of poverty, potentially boost consumption and growth. Many believe it will result in an explosion in entrepreneurship creativity, research, and development. In addition, many countries are now in pilot programs to see if UBI can be implemented long term. These countries include Canada, India, Kenya, Netherlands, Switzerland, and Finland.
In the United States, Alaska has had a form of UBI since the 1980s called the permanent fund dividend (PFD). Since the implementation of this basic income to the Alaskan residents the following research findings have related to the PFD income payment:
• The poverty rate among native Americans fell from between 1980 and 1990
• More than 85% of residents state the PFD is used for basic living needs.
• Only 1% of the residents report that they work less because of the basic income.
• Increase in purchasing power has resulted in new jobs for the state. (Economic Security Project)
The UBI is meant to improve general living conditions that make it possible for everybody to survive and participate in society. Furthermore, the right to work would change into a right to exist, nobody will be forced to work but feel like they will have the incentive to work and will want to work. People can benefit to continue to use AI and automation for work. If you can’t automate, improve the work environment so people want to work or do the work yourself.
UBI would be a perfect solution for the ongoing automation and the age of AI. But more things would directly benefit from this. It would reduce overall poverty and crime. It will reduce the government’s bureaucracy. People who are handicapped would get better treatments and not be seen as a burden on society. Productivity would rise on both sides, through automation on one hand, through the passion of people on the other and when the population continues to grow, even the economy will profit because everybody can spend more money.
Besides these important changes for society as a whole, each person on their own, they can spend more time in what they enjoy in turn will become more productive. Of course, universal basic income will not solve every problem we need to face in the future. But it’s an important idea we need to understand and improve to create a world worth living for everyone with the age of AI and automation.
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Works Cited
Barnes, Peter “Capitalism 3.0 – A Guide to Reclaiming the Commons” 2006 Page 18-19
Ford, Martin “Could artificial intelligence create an unemployment crisis?”, Communications of the ACM, July 2013, no 7
International Monetary Fund. India Selected Issues; IMF Country Report No. 17/55; February 2017
Russell, Bertrand “Roads to Freedom” Socialism, Anarchism and Syndicalism, London: Unwin Books 1918 pages 119-12
Winfree, Paul “A Universal Basic Income Is Anti-Work” dailysignal.com Voltaire quote February 26, 2016 October 17, 2017