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Robotics AI

Will a Pandemic Wave of Automation Be Bad News for Workers? (msn.com) 226

The New York Times reports: When Kroger customers in Cincinnati shop online these days, their groceries may be picked out not by a worker in their local supermarket but by a robot in a nearby warehouse... And in the drive-through lane at Checkers near Atlanta, requests for Big Buford burgers and Mother Cruncher chicken sandwiches may be fielded not by a cashier in a headset, but by a voice-recognition algorithm. An increase in automation, especially in service industries, may prove to be an economic legacy of the pandemic. Businesses from factories to fast-food outlets to hotels turned to technology last year to keep operations running amid social distancing requirements and contagion fears. Now the outbreak is ebbing in the United States, but the difficulty in hiring workers — at least at the wages that employers are used to paying — is providing new momentum for automation...

[S]ome economists say the latest wave of automation could eliminate jobs and erode bargaining power, particularly for the lowest-paid workers, in a lasting way. "Once a job is automated, it's pretty hard to turn back," said Casey Warman, an economist at Dalhousie University in Nova Scotia who has studied automation in the pandemic... A working paper published by the International Monetary Fund this year predicted that pandemic-induced automation would increase inequality in coming years, not just in the United States but around the world. "Six months ago, all these workers were essential," said Marc Perrone, president of the United Food and Commercial Workers, a union representing grocery workers. "Everyone was calling them heroes. Now, they're trying to figure out how to get rid of them...."

The push toward automation goes far beyond the restaurant sector. Hotels, retailers, manufacturers and other businesses have all accelerated technological investments. In a survey of nearly 300 global companies by the World Economic Forum last year, 43 percent of businesses said they expected to reduce their work forces through new uses of technology... Daron Acemoglu of the Massachusetts Institute of Technology said that many of the technological investments had just replaced human labor without adding much to overall productivity. In a recent working paper, Professor Acemoglu and a colleague concluded that "a significant portion of the rise in U.S. wage inequality over the last four decades has been driven by automation" — and he said that trend had almost certainly accelerated in the pandemic. "If we automated less, we would not actually have generated that much less output but we would have had a very different trajectory for inequality," Professor Acemoglu said.

"We'll look back and say why didn't we do this sooner," fast-food franchisee Shana Gonzales told the Times after implementing an automated voice-recognition system that takes customers' orders. Gonzales added that she'd gladly hire human workers instead, but she just can't find them, and says she's even tried raising their starting pay rate — from $9 an hour to $10.

"Ms. Gonzales acknowledged she could fully staff her restaurants if she offered $14 to $15 an hour to attract workers. But doing so, she said, would force her to raise prices so much that she would lose sales — and automation allows her to take another course."
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Will a Pandemic Wave of Automation Be Bad News for Workers?

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  • by CastrTroy ( 595695 ) on Sunday July 04, 2021 @02:44PM (#61550368)

    Everyone wanted a $15 minimum wage. This is what will happen. Workers get more expensive, machines get cheaper, eventually the workers will be replaced by machines. I'm surprised it took at long as it did. Even many office workers aren't safe. A lot of office workers could easily be replaced by a bit of software to generate reports, or follow simple business rules with incoming orders.

    • by ShanghaiBill ( 739463 ) on Sunday July 04, 2021 @02:54PM (#61550390)

      There are many places where prevailing wages are already over $15. I live in San Jose, where McDonald's is offering a starting wage of $18.

      So there is already an incentive to automate and kiosks are already appearing in some fast food joints.

      Once the Kiosks are developed and debugged, they will likely be deployed even in places like Mississippi and Puerto Rico where wages are much lower since the NRE is a sunk cost.

      Automation is coming, whether the minimum wage is raised or not.

      • by VeryFluffyBunny ( 5037285 ) on Sunday July 04, 2021 @03:16PM (#61550438)
        Yes, reducing economic activity is the best way to boost an economy, right? Welcome to the race to the bottom.
        • Re: (Score:2, Insightful)

          Yes, reducing economic activity is the best way to boost an economy, right?

          Replacing a cashier with a kiosk is not "reducing economic activity". The order is still being taken and the customer is still served.

          The economic activity is the same, but less labor is required. This is exactly what a "productivity improvement" is.

          The ex-cashier is now available for a job that actually produces something, thus increasing economic activity.

          Welcome to the race to the bottom.

          Bullcrap. More productive societies are at the top, not the bottom.

          • by dfm3 ( 830843 ) on Sunday July 04, 2021 @04:29PM (#61550654) Journal
            Good, they can lower their prices since they are saving costs of paying that cashier. Oh, wait.

            Guess where the profits from that "productivity improvement" are going to end up? If automation increases profits, it's going to happen whether minimum wage is $15 or $7. Heck, it's already been happening in many places long before wage hikes were on the radar. Self checkout lines and kiosk ordering have been a thing for years already.
          • by fluffernutter ( 1411889 ) on Sunday July 04, 2021 @04:31PM (#61550662)
            Replacing 250 cashiers with one kiosk repair person *is* reducing economic activity.
            • "economic activity" is a pretty meaningless term. If it's supposed to mean productivity, then no, replacing all of those workers with one worker is actually a massive gain in productivity. That actually increases the GDP, which is the metric most commonly associated with prosperity.

              • Why would economic activity be productivity? Economic activity is many people spending money.
                • If one person does the job previously done by 250 people, then 250 times the goods & services are produced per person.

                  In reality, the other 249 people will get jobs about as productive as their old jobs, but that is still 250 people doing what took 499 people before the kiosks. So about a doubling of wealth creation per person.

                  • Who cares about making goods if no one is able to buy them?
                  • by fluffernutter ( 1411889 ) on Sunday July 04, 2021 @06:20PM (#61551034)
                    Jobs aren't unlimited. People don't just "get new jobs".
                    • Re: (Score:2, Informative)

                      Jobs aren't unlimited.

                      The belief that there is a fixed number of jobs in the economy is known as the Lump of Labor Fallacy [wikipedia.org].

                      Economics expand to absorb available resources, including workers.

                      People don't just "get new jobs".

                      Actually, people do that all the time.

                    • by dryeo ( 100693 )

                      And yet the number of workers has pretty steadily dropped, excepting during war times.
                      Used to be almost the whole population was employed, with workers starting to work at about 5 years of age and very few considered disabled or retired. Now it probably closer to half the population or less. Kids don't start working until later and later, old people spend upwards of a third of their life not working. Female participation comes and goes but I have a hard time believing they're all working when I drive by a s

                    • What happens when workers below a certain education level cease to be a resource?

                  • by dryeo ( 100693 )

                    And 200 of those people don't have the skills to get those other jobs and join the growing homeless population.

            • by tomhath ( 637240 )
              One man with a backhoe can do the work of a hundred men with shovels. But a thousand men with teaspoons can do the work of a hundred men with shovels. In the end you still have a hole in the ground. Except with the backhoe those thousand men can do something more productive than digging a hole with teaspoons.
          • Who is going to place that order when everyone is being replaced by machines?

            Demand = Desire + means of purchase. Without the latter, demand is zero.

          • Yes, reducing economic activity is the best way to boost an economy, right?

            Replacing a cashier with a kiosk is not "reducing economic activity". The order is still being taken and the customer is still served.

            The economic activity is the same, but less labor is required. This is exactly what a "productivity improvement" is.

            The ex-cashier is now available for a job that actually produces something, thus increasing economic activity.

            Welcome to the race to the bottom.

            Bullcrap. More productive societies are at the top, not the bottom.

            It looks like you're conflating economic activity (good for everyone) with profit margins (good for capital, at least in the short-term). Increasing unemployment, AKA reducing the number of customers & suppressing wages, AKA austerity, has been shown time & again to slow down economic activity & prolong recessions. Perhaps you've heard of some guy called John Maynard Keynes who helped the USA get out of the great depression?

          • by rtb61 ( 674572 )

            Careful fella, you are advocating, work cheaper than a machine or starve to death in the street. How many people did https://en.wikipedia.org/wiki/... [wikipedia.org] out of work millions of ditch diggers, back breaking job, probably glad to see it end but not if they have to starve to death in a street gutter.

            In the fifty they cheered automation, WORKS WILL NOT HAVE TO WORK AS MUCH in the eighties that changed to FUCK THE WORKERS automation means more profit for rich clinical psychopaths.

            No automation does not mean wages

        • Yes, reducing economic activity is the best way to boost an economy, right? Welcome to the race to the bottom.

          This latest automation is not about efficiency, safety, or productivity. It's sole purpose is to eliminate as many humans from ever working again as possible.

      • by Kokuyo ( 549451 ) on Sunday July 04, 2021 @03:46PM (#61550536) Journal

        People keep bringing up McDonalds...

        There is a McDonald's close to me (Switzerland/Germany) that has kiosks you can order from. That one is in Germany... I believe Burger King Switzerland went with an ordering App you can download.

        I did not see fewer people working that McDonalds, EVER. Perhaps fewer cash registers, sure, but this McDonalds is FULL. ALWAYS. They are churning out "food" at an astonishing rate.

        Have you ever considered that ordering from a low wage, uninterested foreign kid might not be a very efficient and pleasant way of handling things and that now that there is an alternative that people come to the business more often necessitating more workers to prepare the food?

        Believe it or not, a web interface that lets you have it your way and that displays EXACTLY what you ordered so you can double check seems to lead to fewer fucked up orders too.

        As far as I can see, the automation of actual production isn't coming along as easily as people want me to believe.

        • I did not see fewer people working that McDonalds, EVER. Perhaps fewer cash registers, sure, but this McDonalds is FULL. ALWAYS.

          Excellent, that's what we all hope for. I'm delighted that in addition to getting rid of drudge jobs like entering orders, people are moving up the value chain to things like actually making the food.

          That's been the lesson of the last 200 years: we automate away millions of jobs and people adjust. We didn't wind up with mass unemployment and thus I don't believe we will this time either. All the chatter about "robots are taking all our jobs and we need UBI" is just the fear and lack of historical comparison

      • by isomer1 ( 749303 )

        Once the Kiosks are developed and debugged, they will likely be deployed even in places like Mississippi and Puerto Rico where wages are much lower since the NRE is a sunk cost.

        This is a fallacy common amongst the managerial staff - the belief that NRE comprises the bulk of project expense. The reality in every system I've seen successfully deployed is that (1) development never ceases, it is an ongoing expense (2) ongoing support & maintenance costs have to be on par with the initial NRE costs, to keep the project at a steady-state. Fail at either of those pieces and the project withers and is soon obsolete. Raising the standard requires an ongoing output of effort & expe

      • There are many places where prevailing wages are already over $15. I live in San Jose, where McDonald's is offering a starting wage of $18.

        So there is already an incentive to automate and kiosks are already appearing in some fast food joints.

        Once the Kiosks are developed and debugged, they will likely be deployed even in places like Mississippi and Puerto Rico where wages are much lower since the NRE is a sunk cost.

        Automation is coming, whether the minimum wage is raised or not.

        Here in PA, minimum is 7.25, and our McD's are automated and have been running quite well for several years since well before the pandemic - shouldn't we be still employing people since our's cost half as much? In a world where the profit motive runs things, why aren't your highly paid workers the very first ones to go in a system that works fine already?

    • Re: (Score:3, Insightful)

      Everyone wanted a $15 minimum wage.

      No, not everybody wanted it. Some of us understand how economics works in the real world, instead of how academentia wants it to work. And, we understand that when there's a conflict between the two, the real world always wins.
    • Everyone wanted a $15 minimum wage. This is what will happen. Workers get more expensive [...]

      This is one of the reasons I advocate UBI instead of minimum wage hikes. With UBI, workers get *cheaper* (good for businesses), while the workers' standard of living increases (good for workers).

    • by Gravis Zero ( 934156 ) on Sunday July 04, 2021 @04:02PM (#61550590)

      Everyone wanted a $15 minimum wage.

      Actually, everyone wants a living wage but they are willing to settle for a $15 minimum wage. This is still something people want and won't change even if some jobs are automated. However, why do you seem pleased with this development? Do you not believe people deserve a living wage?

      This is what will happen. Workers get more expensive, machines get cheaper, eventually the workers will be replaced by machines. I'm surprised it took at long as it did. Even many office workers aren't safe. A lot of office workers could easily be replaced by a bit of software to generate reports, or follow simple business rules with incoming orders.

      You behave as though this idea is new or original. This has been happening since we invented machinery and it's no surprise when it happens. People still deserve to be paid a living wage, even if it means that job is later done by a machine.

      • Well said.
      • The problem is so complicated. Raising wages doesn't mean things get more affordable.

        Let's take housing. This is most people's major cost. In general, the cost of a house is not in the labor or materials to actually build the house. It's location, location, location. I think we can all agree with that. So raising wages doesn't actually make housing any more affordable, it just means we can outbid each other higher and higher to raise the price of a house. It's largely the same impact as banks lowering mortg

    • by fermion ( 181285 )
      Machines do not just replace expensive workers. They do become more value as humans cost more, but, for instance, no human can manufacture a IC by hand. Even going back to Babbage, the difficulty was precisely manufacturing and aligning gears. We do not assemble autos with robots because humans are too expensive, but because robots make more reliable cars. Look at the legacy Harley Davidson, hand assembled. They do not produce a consistently reliable machine.

      $15 an hour is the answer, not the problem. We

    • by Calydor ( 739835 )

      Let's assume for a moment that cashiers, fast food workers, office workers etc. all get replaced by machines.

      They are now unemployed. They do not have the trained skills, or perhaps even the mental capacity, to easily retrain into maintaining or designing these machines. What are they supposed to do? Just be happy for society's advance while they go hungry?

      And as more and more jobs are replaced with automation, leaving only the extremely specialized and creative niches, where are people going to get the mon

    • A lot of bosses could pretty much be replaced by magic-8-balls, but guess what will not happen. Even though it's probably one of the things that could cut the most slack.

  • Human working hours are the only truly limited resource, if you can get something done without spending them, you can spend these hours on something else and in summary get more done. It's inconvenient of course for people to switch jobs, but overall it's always a net benefit to the society.
  • by rsilvergun ( 571051 ) on Sunday July 04, 2021 @03:00PM (#61550408)
    Or any supposed labor shortages. We already know the labor shortages are bullshit because when they pulled unemployment in Missouri hiring rates did not go up. automation is coming no matter what because unless you're using actual slaves, such as prison labor, then it's going to be cheaper. 70% of middle class jobs lost since the seventies where due the process improvement in automation. Automation has been cutting the middle class for 40 years. The .com boom and the housing bubble disguise that fact.
  • by VeryFluffyBunny ( 5037285 ) on Sunday July 04, 2021 @03:11PM (#61550428)

    ...gig workers are waaay cheaper than robots & the people who tell them how to do their jobs are waaay cheaper too.

    I wonder if gig workers are cheaper than slavery?

    • Don't have to feed them.
    • Probably. You have to feed and shelter slaves, and you bear the risk of them getting sick or dying because then they're sunk cost.

      Gig workers bear that risk for you, and judging from their wages I doubt that feeding and sheltering them would be cheaper.

  • by bobstreo ( 1320787 ) on Sunday July 04, 2021 @03:19PM (#61550454)

    Once upon a time, someone would start at the bottom of a company, making little, but learning.

    If they were capable, they would be promoted upwards to increasing levels of managerial positions.

    Some would leave, and form their own companies.

    With no bottom of the pyramid, there is no base.

    • That's ok, managerial positions are largely a waste of space anyway. At least, when they are managing people of any level of competence that is true.

  • There should be a law that requires all businesses that replace workers with automated systems to pay, as a tax, the equivalent of the previous workers' salaries to the local state unemployment fund.
  • by Snotnose ( 212196 ) on Sunday July 04, 2021 @03:35PM (#61550502)
    Me typically at the drive up:

    Me: I'd like 2 foos and a bar
    Speaker: flwxfooxzz brss grbarmg
    Me: Um, what?
    Speaker: flzfoo rgshbar correct?"
    Me: Um, yeah. That sounds right
    Speaker: snap crackle mumble $12.81
    Me: Yeah, that ain't right
    Speaker: grzzble2bar1blazecrackle
    Me: Yeah no. 2 foos and a bar
    Speaker: crklthat will be $8.94, please drrveupklwndzw
    Me: Sounds about right, hope for the best
  • To do those jobs in the first place, so build machines to do those jobs

  • What workers?

  • Universal basic income would lubrication the issue of dropping workforces which then have zero wages and thus zero means to turn over our transactional economy.

    If they don't, no amount of robots will be worth the cost of tanking the cycle.

    • the taxation necessary for a broad UBI runs counter to globalization. Until we wrestle control of that monster through multinational agreement, then treating workers well will generally lead to questions of economic decline.

  • "Ms. Gonzales acknowledged she could fully staff her restaurants if she offered $14 to $15 an hour to attract workers. But doing so, she said, would force her to raise prices so much that she would lose sales — and automation allows her to take another course."

    The continuous effort to drive down prices, for something that is a luxury, will effectively accelerate automation, resulting in a less equitable society.

    But if you raise prices too much, that could tip the balance - fewer people will utilise se

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