High-skill robots, low-skill workers

Some notes on what I think I understand about technology and inequality.

Let’s start with an obvious big question: is technology destroying jobs faster than they can be replaced? On the long term the evidence isn’t strong. Humans always appear to invent new things to do. There is no reason this time around should be any different.

But in the short term technology has contributed to an evaporation of mid-skilled jobs. Parts of these jobs are automated entirely, parts can be done by fewer people because of higher productivity gained from tech.

While productivity continues to grow, jobs are lagging behind. The year 2000 appears to have been a turning point. “Something” happened around that time. But no-one knows exactly what.

My hunch is that we’ve seen an emergence of a new class of pseudo-monopolies. Oligopolies. And this is compounded by a ‘winner takes all’ dynamic that technology seems to produce.

Others have pointed to globalisation but although this might be a contributing factor, the evidence does not support the idea that it is the major cause.

So what are we left with?

Historically, looking at previous technological upsets, it appears education makes a big difference. People negatively affected by technological progress should have access to good education so that they have options. In the US the access to high quality education is not equally divided.

Apparently family income is associated with educational achievement. So if your family is rich, you are more likely to become a high skilled individual. And high skilled individuals are privileged by the tech economy.

And if Piketty’s is right, we are approaching a reality in which money made from wealth rises faster than wages. So there is a feedback loop in place which only exacerbates the situation.

One more bullet: If you think trickle-down economics, increasing the size of the pie will help, you might be mistaken. It appears social mobility is helped more by decreasing inequality in the distribution of income growth.

So some preliminary conclusions: a progressive tax on wealth won’t solve the issue. The education system will require reform, too.

I think this is the central irony of the whole situation: we are working hard to teach machines how to learn. But we are neglecting to improve how people learn.

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Kars Alfrink

Kars is an independent interaction and game designer who makes things with technology for play, learning and creativity.