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What Happens To Society When Robots Replace Workers? 628

Paul Fernhout writes: An article in the Harvard Business Review by William H. Davidow and Michael S. Malone suggests: "The "Second Economy" (the term used by economist Brian Arthur to describe the portion of the economy where computers transact business only with other computers) is upon us. It is, quite simply, the virtual economy, and one of its main byproducts is the replacement of workers with intelligent machines powered by sophisticated code. ... This is why we will soon be looking at hordes of citizens of zero economic value. Figuring out how to deal with the impacts of this development will be the greatest challenge facing free market economies in this century. ... Ultimately, we need a new, individualized, cultural, approach to the meaning of work and the purpose of life. Otherwise, people will find a solution — human beings always do — but it may not be the one for which we began this technological revolution."

This follows the recent Slashdot discussion of "Economists Say Newest AI Technology Destroys More Jobs Than It Creates" citing a NY Times article and other previous discussions like Humans Need Not Apply. What is most interesting to me about this HBR article is not the article itself so much as the fact that concerns about the economic implications of robotics, AI, and automation are now making it into the Harvard Business Review. These issues have been otherwise discussed by alternative economists for decades, such as in the Triple Revolution Memorandum from 1964 — even as those projections have been slow to play out, with automation's initial effect being more to hold down wages and concentrate wealth rather than to displace most workers. However, they may be reaching the point where these effects have become hard to deny despite going against mainstream theory which assumes infinite demand and broad distribution of purchasing power via wages.

As to possible solutions, there is a mention in the HBR article of using government planning by creating public works like infrastructure investments to help address the issue. There is no mention in the article of expanding the "basic income" of Social Security currently only received by older people in the U.S., expanding the gift economy as represented by GNU/Linux, or improving local subsistence production using, say, 3D printing and gardening robots like Dewey of "Silent Running." So, it seems like the mainstream economics profession is starting to accept the emerging reality of this increasingly urgent issue, but is still struggling to think outside an exchange-oriented box for socioeconomic solutions. A few years ago, I collected dozens of possible good and bad solutions related to this issue. Like Davidow and Malone, I'd agree that the particular mix we end up will be a reflection of our culture. Personally, I feel that if we are heading for a technological "singularity" of some sort, we would be better off improving various aspects of our society first, since our trajectory going out of any singularity may have a lot to do with our trajectory going into it.
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What Happens To Society When Robots Replace Workers?

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  • by BarbaraHudson ( 3785311 ) <barbara.jane.hud ... m ['ud.' in gap]> on Saturday December 20, 2014 @01:49PM (#48642125) Journal
    First the good news. We'll have more time to post on slashdot.
    Now the bad news. We'll have more time to post to slashdot.
    • by mcgrew ( 92797 ) * on Saturday December 20, 2014 @02:16PM (#48642285) Homepage Journal

      Maybe folks will make art for art's sake, program for the love of code, etc. I love the freedom of being able to write and publish anything I want without making compromises with money issues. Like Rush (the band) sang in Spirit of Radio,

      It's really just a question of your honesty, yeah
      Your honesty.
      One likes to believe in the freedom of music,
      But glittering prizes and endless compromises
      Shatter the illusion of integrity.

      • Yes, but without anybody buying your art, or doing anything useful with your code, I think you'd probably end of feeling like your efforts are futile and lose interest.
        • by Paul Fernhout ( 109597 ) on Saturday December 20, 2014 @03:49PM (#48642859) Homepage

          http://en.wikipedia.org/wiki/M... [wikipedia.org]
          "Intrinsic motivation has been studied since the early 1970s. Intrinsic motivation is the self-desire to seek out new things and new challenges, to analyze one's capacity, to observe and to gain knowledge.[5] It is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward."

          One of the biggest problems most financially successful artists have is that their buying public wants more of the same (say, another Harry Potter novel), whereas their artistic muse may want to move in new directions. That's a reason many commercially successful artists tend to stagnate artistically since doing more of the same is much less risky financially but is often unsatisfying artistically.

        • Dateline: December 20th, 2034

          It is now official. Netcraft has confirmed: Human jobs are dying

          One more crippling bombshell hit the already beleaguered job-seeking community when IDC confirmed that human's share of the market share has dropped yet again, now down to less than a fraction of 1 percent of all jobs. Coming on the heels of a recent Netcraft survey which plainly states that human workers have lost more market share, this news serves to reinforce what we've known all along. the entire concep

    • Good news: Bennet Haselton is going away. Bad news: He is being replaced by the Ramble-bot 1000.
  • by maliqua ( 1316471 ) on Saturday December 20, 2014 @02:00PM (#48642181)

    we'll start reading articles every week or two on /. about how things HAVE changed rather than the weekly speculation of how they will change.

  • by mbone ( 558574 ) on Saturday December 20, 2014 @02:02PM (#48642197)

    The primary problem we have today is not automation, it is over-concentration of wealth. Automation will destroy jobs to the extent that the people running the companies implementing the automation wish it to. If those companies are run by people who are happy to deliver worse service as long as they can pay fewer people, then, yes, we have a problem, but it is not with the technology.

    There is no such thing a technological determinism. It's people all the way down.

    • It's people all the way down.

      Ah, as in Soylent Green . . . ?

      That would be one solution, I guess.

    • Revolution (Score:5, Insightful)

      by duckintheface ( 710137 ) on Saturday December 20, 2014 @02:53PM (#48642519)

      The last line of the article is the most important. " Otherwise, people will find a solution — human beings always do — but it may not be the one for which we began this technological revolution." The word "revolution" here is a double entendre. He is saying something you will not often read in the Harvard Business Review: that automation is going to destabilize society to an extreme extent.

      mbone, you are exactly correct that this is about concentration of wealth. The concentration of wealth is self-limiting because nobody will have money to buy the goods being produced. But conditions of life at the limit will be unbearable. So a new mechanism to distribute the bounty of society will have to be developed. But the rich will not recognize that until the mobs with pitchforks are breaking into their gated communities.

      • by hitmark ( 640295 )

        The biggest trick those rich has managed to do, is to convince the rest that they are "temporarily embarrassed rich".

        As such, before the pitchforks go after the rich, it will go after each other for considering to go after the rich...

      • Re:Revolution (Score:4, Informative)

        by itzly ( 3699663 ) on Saturday December 20, 2014 @03:04PM (#48642589)

        But the rich will not recognize that until the mobs with pitchforks are breaking into their gated communities.

        That's what armoured battle robots are for.

    • by hitmark ( 640295 )

      Thing is that if they don't do it, someone else will and run them out of business by offering a slightly lower price.

      A certain bearded German called it "the coercive laws of competition".

    • by lorinc ( 2470890 )

      What if it is possible to be completely autonomous with machines? Machines that take care of your food, clothes, transportation, anything you ever need or want, but machines that require a massive amount of wealth to acquire first. What if the future of automation is the mere 1% that live in a libertarian utopia (kind of The dancers at the end of time by M. Moorcock) and the remaining 99% struggling to survive? what if the over-concentration of wealth you are observing right now is just the first step towar

    • by DanielRavenNest ( 107550 ) on Saturday December 20, 2014 @03:38PM (#48642799)

      > Automation will destroy jobs to the extent that the people running the companies implementing the automation wish it to.

      I disagree with this statement, and the assumptions behind it. First is the assumption that only big companies can have automation. That like assuming only big companies can have computers. 50 years ago that was a reasonable assumption, because computers were expensive, like industrial robots are today. But it need not be true in the future. I'm working on "MakerNets" and "Seed Factories". A MakerNet is a network of people with skills and some machines. They help each other build stuff and upgrade. Eventually you reach a level where most of the member's needs are met by automation within the network. If your housing, food, and utilites are supplied that way, most of the need for conventional jobs goes away.

      A "Seed Factory" is a starter kit of machines designed to make parts for more machines to expand the factory capacity. At first, the starter kit won't make anywhere close to 100% of the new parts. Stuff will still have to be bought. But as the collection of machines grows, you can make more of your own items, and need to buy less. The engineering question is what belongs in the starter kit, and what's the best path for expansion.

      The problem with corporations is the separation of ownership and labor, giving them conflicting goals. Concepts like MakerNets and Seed Factories lets the workers "grow their own" production. Then they are owners as well as workers for whatever amount of labor is still needed. Their goals are now aligned - owner-operators are not going to lay themselves off. More automation just makes them more efficient.

  • by Kohath ( 38547 ) on Saturday December 20, 2014 @02:02PM (#48642201)

    Maybe we should re-examine every law, regulation, and employer mandate that makes it more expensive or more risky to hire people or conduct business that would employ people?

    • by Livius ( 318358 )

      Try finding a politician willing to even look at legislation that enables the unions to go on strike without facing any consequences.

    • by Anonymous Coward on Saturday December 20, 2014 @02:15PM (#48642277)

      Seems like you've missed the point.

      As the capital cost of automation declines, humans simple can't win the race to the bottom you are proposing. A robot needs $1.50 of electricity per day and can run 24x7. No matter how cheap and risk-free it is to hire humans, they simply can't beat that and not starve to death in the process.

      • by ShanghaiBill ( 739463 ) on Saturday December 20, 2014 @03:24PM (#48642727)

        As the capital cost of automation declines, humans simple can't win the race to the bottom you are proposing.

        The "cost of automation" has been declining for centuries, and humans have been doing better and better. In particular, humans have done the best in countries that have automated the most. So you have a nice theory that is the exact opposite of actual reality. If you really believe that "this time is different", you need to explain why.

        • by TubeSteak ( 669689 ) on Saturday December 20, 2014 @08:07PM (#48644067) Journal

          In particular, humans have done the best in countries that have automated the most.

          Which countries?
          What is their tax rate?
          How much socialism (aka social support) is mixed into their social structure?

          The "cost of automation" has been declining for centuries, and humans have been doing better and better.

          This is a bit of a red herring, in that for centuries, the declining cost of automation mostly served to free up huge amounts agricultural laborers to do other work.

          The issue at hand is that now automation is taking over much of the "other work."

    • by Tablizer ( 95088 )

      When I ask conservatives what Federal laws to cut, most of them don't have a clue. The few that bother to research often recommend cutting rules that create health, safety, or pollution risk for workers or customers.

      Becoming a 3rd world country to compete with the 3rd world doesn't sound like a good plan to me.

      I'm giving you the opportunity to give substantive suggestions here again...

  • Sounds like (Score:2, Informative)

    by Anonymous Coward

    Sounds like Manna:

    http://marshallbrain.com/manna1.htm

  • by fustakrakich ( 1673220 ) on Saturday December 20, 2014 @02:09PM (#48642243) Journal

    What a bullshit question! Everything should be free then. DUH! If there is no need for work, there is no need to ration goods and services to those who can 'pay'. Human effort is the only thing that requires compensation.

    • by itzly ( 3699663 )
      There's only so much beach front property, you know.
  • by koan ( 80826 ) on Saturday December 20, 2014 @02:15PM (#48642281)

    Socialism.

    • Socialism: an economic system in which the workers control the means of production. If the workers are all robots, that bodes ill for humanity. I hope you meant "communism" instead.
      • by itsenrique ( 846636 ) on Saturday December 20, 2014 @02:50PM (#48642503)
        I think what he means is more like what some call "socialism" in Europe. And it's not worker's necessarily controlling the means to production: it's about providing more of a "safety net" via social services. Communism as an economic theory and communism in practice are obviously two different things.
      • Socialism is a social and economic system characterized by social ownership of the means of production and co-operative management of the economy, as well as a political theory and movement that aims at the establishment of such a system.

        Communism is a socioeconomic system structured upon common ownership of the means of production and characterized by the absence of social classes, money, and the state; as well as a social, political and economic ideology and movement that aims to establish this social

  • by Anonymous Coward on Saturday December 20, 2014 @02:37PM (#48642391)

    This has been hashed out numerous times in both academic and casual literature. Science fiction talks about it a lot.

    It's simple (hah):
    1) Mandate very short work weeks, so everyone still works, just 15-20 hours/week
    2) at the same annual wage.
    If you have a 2:1 productivity increase, that would imply that you're deriving twice as much industrial output from each worker, so they only have to work half as long, and the "cost per unit sold" for that labor is exactly the same (less the capital investment in the automation)

      That has the effect of transferring some of the wealth increase due to the productivity gain to the workers (all of the world, who should unite)

    • But our current system means that companies are essentially punished (by lowered stock prices) if they don't make MORE every quarter. When automation comes so far, jobs are not cut to 20 hours a week at the same pay. Instead, half the people are simply fired!
  • by bugs2squash ( 1132591 ) on Saturday December 20, 2014 @02:41PM (#48642429)
    no self respecting robot will put up with the shit that the average worker does, they'll go straight into management instead. The're already running wall street, so the cocaine intake capability is there, all we need to do now is teach them golf.
  • Communism spreads through its seductiveness, and the justified fear of technology-driven joblessness is creating a seductive call for New Communism: The Basic Income.

    The results will be the same as we have seen in other communist countries: forced abortions and forced sterilizations. I was pleased to see the linked list of possible solutions/outcomes include mention of abortion, but was disappointed to see lack of mention of forced abortion and forced sterilization. We don't need to turn to sci fi novels as

  • by Anonymous Coward on Saturday December 20, 2014 @02:58PM (#48642541)

    It's ridiculous that in 2014 people are still working 40 hours per week just to afford food and a roof over their heads.

    In a civilized society, the number of hours of work required for basic survival should be decreasing with each passing year.

    • in many countries, it has decreased. Only in the stupid ones workers are working harder and harder for less and less money and benefits.

  • by Boronx ( 228853 ) <evonreis.mohr-engineering@com> on Saturday December 20, 2014 @03:00PM (#48642561) Homepage Journal

    Maybe people shouldn't have to work so much? Just pay people a living salary for doing 10 hours per week or something. Isn't that the dream? If we get more stuff for less work, let's kick back a little bit and let people do what they want most of the time. I think we'll be amazed at what will happen when most of the world's time is freed.

  • A Transition Policy (Score:5, Interesting)

    by Baldrson ( 78598 ) * on Saturday December 20, 2014 @03:01PM (#48642569) Homepage Journal

    My suggestion for a transition policy, which I set forth in a 1992 paper titled "A Net Asset Tax Based On The Net Present Value Calculation and Market Democracy [polyonymo.us]" was to cease taxing economic activity and, instead, tax net assets beyond bankruptcy protection of home and tools of the trade, and use the funds to pay out an unconditional basic income [progress.org] aka "citizen's dividend", thereby doing away with most of the present functions of government including not only the welfare state but also the need for burdensome regulatory agencies (that are subject to capture). Part of the problem here, of course, is the notion of "citizen" vs "non-citizen", but that is a far lesser problem than massive unemployment and hyper-centralization of net assets.

    Quoting from that paper:

    The government should tax net assets, in excess of levels typically protected under personal bankruptcy, at a rate equal to the rate of interest on the national debt, thereby eliminating other forms of taxation. Creator-owned intellectual property should be exempt.

    ...

    With the exception of basic functions of government and the pay down of debt, the government budget should be dispersed to citizens as cash, rather than being spent in government programs or even limited in the form of vouchers. This is "market democracy" in which the citizens and their markets, rather than central planning and politics, influence the selection of goods and services to be capitalized and provided.

    • Cool, Jim! You might like this related proposal by me also for a basic income funded by a wealth tax of 6% on declared assets, with only declared assets being insured and defended by the government, explaining why millionaires should support the idea:
      http://www.pdfernhout.net/basi... [pdfernhout.net]

      BTW, if we had a basic income, it's not clear to me there would still be any justification for copyright or patents. Suddenly anyone wanting to create could do so on their own or in collaboration with other like-minded creative

  • by Alrescha ( 50745 ) on Saturday December 20, 2014 @03:10PM (#48642643)

    As robots make it less and less necessary for people to work, we have to get rid of our outmoded notion that in order for a person to be a respected member of society, be fed, have housing, that person must have a 'job'.

    A.

  • by RyoShin ( 610051 ) <tukaro AT gmail DOT com> on Saturday December 20, 2014 @03:33PM (#48642777) Homepage Journal

    This is why we will soon be looking at hordes of citizens of zero economic value.

    Not only do we already have "zero economic value" citizens, we have negative-economic value citizens. Consider those who are mentally and/or physically incapable of working today; do we just toss them out on the street? Sadly, sometimes; but mostly they receive government benefits in an attempt to help them maintain some stable life despite being able to work. They can only take and never give, except perhaps as research subjects for scientists.

    The only way we will survive the Autonomy Age (where robots do the vast majority of necessary work, with little or no human interaction) intact is by giving up this stupid idea that people are defined by their productivity, especially when the productivity of many well-off people is essentially zilch, such as marketers, HR, CxOs, and a plethora of middle-men (but they don't take food stamps so are ignored.)

    This will probably approach something like socialism, if not socialism itself, but we (people the world over, but especially Americans) have a huge hurdle to get over in convincing people that socialism is a synonym for communism or evil, and that taxes on obscenely large amounts of income is not only a necessity, but not evil. I personally look forward to a future where people are guaranteed a Minimum Standard of Living (not necessarily income; there are likely more efficient methods than handing out cash) and those who want to and can do work are able to do so for a higher Standard while the rest are able to just enjoy the long-term fruits of humanity, namely the arts, literature, and random cat videos.

    (I think this will require an efficient and reliable male contraceptive medication to help reduce the birth rate even further, but that's a different subject.)

  • an end to the 10am to 3pm work week

To the systems programmer, users and applications serve only to provide a test load.

Working...