Andrew Yang's ideas on automation and mass unemployment are not based in reality
slate.com
slate.com
I'm not sure if the author is claiming that the job displacement will be 1:1. Does anyone honestly think it would be 1:1? I don't think so. And if more jobs are disappearing than are being created, there is a net job loss; also the author agrees that the new jobs would be lower pay. Whether jobs will be created in entirely and unpredictably new industries is besides the point. Yang's point is that everyday people are inadequately prepared to make that transition to new jobs. He frequently cites data that the US federal government sucks at job retraining.
IF various tech companies are successful in their endeavors (and yes, that's a big if), it will be true that a lot of people will need to transition to something new. And given recent demos by various tech companies for voice AI tech (yeah, Google's really was impressive when it came out, and it will probably get better until it's commercialized one day), self-driving tech (I'm a skeptic for the short-term, but it will probably happen in the long-term), and etc, I think the subject is ignored at the working population's peril. Never mind self-checkout, which is already a reality and steadily gaining ground.
Is it that say McDonalds switching to electronic kiosks to order your burger is going to create as MANY tech jobs as it took away? Because that doesn't pass the smell test.
Andrew Yang, snake oil salesman: https://www.nationalreview.com/2019/10/andrew-yang-tech-entr...
Is Yang doing more harm than good to the case for universal income?: https://www.politico.com/magazine/story/2019/10/16/andrew-ya...
Andrew Yang is Full of it: https://slate.com/business/2019/10/andrew-yang-automation-un...
There was one more I can't find. It's good to be generating hit pieces; it means someone views you as a threat.
I think Yang has a solid argument that automation is a considerable job risk in the future, but we don't know how long that will take. I really doubt truckers are going to be obsolete so quickly. The tech will be good enough no doubt, but there's going to be a kerfuffle that'll slow it down, especially if you get a pro union candidate like Sanders.
I think Yang is a good talker, charismatic, and smart, but I don't buy his urgency... yet. That being said, I think he'd make a good candidate (personally prefer Bernie, but would happily accept Yang).
No doubt a lot of media is trying to tank him (we see this with Bernie constantly), which just makes it really hard to sort the reality from the BS and polarizes people further.
To discredit Yang's main running ideal.
Right now if you want to employ them you have to compete with McD burger-flipping, now they will be available for your next enterprise
Second, there is a ton of work out there our society likes to ignore the value of because it’s not shallow novelty: https://aeon.co/essays/the-key-to-jobs-in-the-future-is-not-...
And really if automation does take more jobs than we can replace, being really nice to each seems like a good idea. Cause most people won’t be needed. Are we to descend into Mad Max life or could we, you know, kill the notion alpha attitudes are useful.
I am reminded of a paper by chimp researchers who watched a community of chimps gang up on some alpha male chimps and kill them off. Then noted how their community became much more ethical after such selfish, entitled behavior was eradicated.
I actually see it as “too little” new information that’s of utility to the general populace.
We spend then “too much” time focused on “too few ideas that matter”.
Like what celebs eat is discussed more than environment, and on and on. Too little new progress is made to satisfy these less discussed but ultimately far more important problems.
Thinking Keynes, our demand has been nudged to focus on consumerism, celebrity, gainz!. But we maybe need to balance that with the demands of the literal majority being shat on.
I’ve seen it discussed here too, that focusing on poverty via a statistic emotionally numbs analysis, ignoring that it’s still hundreds of thousands or whatever number it is, of real people barely scraping by.
We’re fetishizing opinions that we’re obliged to import as education from our parents and institutions, which is unavoidable. What is avoidable and manageable is the content of those opinions.
Free speech is generating whatever syntax you want. You’re not owed a society that kowtows to the embedded semantics.
"Autonomous trucks could replace as many as 294,000 long-distance drivers, including some of the best jobs in the industry. Many other freight-moving jobs will be created in their place, perhaps even more than will be lost, but these new jobs will be local driving and last-mile delivery jobs that—absent proactive public policy—will likely be misclassified independent contractors and have lower wages and poor working conditions."
All of this ignores Yang's other point that all of the roadside diners and other hospitality industry on the highways that depend on the trucking industry would be affected.
I'm not saying that the tech companies will achieve what they are aiming to do. Again, I'm a short-term self-driving skeptic. But I think it's dangerous to not have the conversation.
More things can be shipped farther away therefore more last mile jobs?
The difference is that scribing was a limiting factor to new and expanded methods of communication. Removing this limit allowed industry to expand due to massive decreases in costs of communication and expansion into entirely new forms. A similar argument can be made for many of the usual purported counter examples against automation alarmism. Steam engines, combustion engines, trains, cars, highways, the internet, they all were massively reducing friction and transaction costs, thus opening up new forms of commerce which brought new kinds of jobs.
Automation is a different kind of beast. The promise of the automation revolution is not orders of magnitude increases in efficiency, its removing humans from the equation. A long haul truck doesn't get across the country and order of magnitude faster, it just gets there more cheaply without the constraints human involvement. This does create a market for self-driving trucks and the industries needed to support them. But they too can be automated. The potential for making human labor irrelevant to large chunks of the economy is real and shouldn't be hand-waved away.
The only difference is that we are getting closer to the same asymptote we have been approaching for centuries now, where human labor is less about supplying material property and more about providing human service. Sure, it is possible that within the next few decades all but the most highly skilled and educated workers will be displaced into a continuously growing service industry. A decent chunk of people are not cut out for making a living on human interaction, so this is where a base UBI makes a lot of sense. It does not, however, imply that the labor force as a whole will not have any work to do.
Were that not the case, there would be no incentive for customers to select the new service.
The people were just biological machines with mutually exclusive temporarily aligned self-interests.
The key takeaway seems to be while Yang says automation has displaced jobs there's a lack of academic consensus on the weight placed between trade policy and technology improvements; but everyone agrees both have had a significant effect.
Ok... so we shouldn't be coming up with a plan for how to address economic changes due to technology based on "it's historic effect has possibly been outweighed by other factors" even though we all agree it will continue to have an effect in the future?
Also just want to point out that anyone using the reported federal unemployment rate as a measure of overall employment health has already lost all credibility to write on the topic.
Why not compile the various studies and make an infographic showing the different ideas out there? It might be much easier to understand.
Uhm, that's halfway decent careers turning into far fewer and shittier jobs. That's jobs disappearing. And it ignores that eventually someone will automate even that part away, it'll just take a bit longer.
The article just seems to just be a series of quibbles that don't show Yang to be wrong in any meaningful sense.
Whoever does the research needs go actually go along an Over The Road truck driver and actually see what challenges technology face.
Different highways with crumpling road markers. Severe weather. Unpredictable human drivers. Fueling. Construction sites and their differences between displaying markers.
I do not see autonomous technology taking over long haul truckers anytime soon, especially if the state and federal government doesn't maintain the highways and keeps cutting budget.
The few scenarios where the present technology can handle is a local route that has greatly maintained roads and stable weather. Even in this case, it's foolish to think human drivers will not be as careless as before. In fact, I predict they will think its so safe that they will cut the truck off ever closer, thus creating more disasters.
Source: I'm a trucker and know the challenges computer vision and its sensors could possibly face.
Then another 5% of routes will become computer navigable, and the remaining truckers will compete for the remaining jobs.
Then between automation and improved maintenance due to the higher regulatory fees afforded by automation, more roads will become auto-navigable by dint of maintenance and standardised marking.
There will be a pincer movement, roads coming up to standard, standards converging on what automated trucks need, and automation becoming better at navigating any road.
By 2030 there will be far fewer humans driving anything.
Even if Yang is only slightly right, and I do agree on some sectors like Amazon replacing brick and mortar stores and the erosion of mid-skilled work and good jobs, that can already be back-breaking for many developed economies, and in particular the UK and the US with their strong focus on deindustrialisation have already felt the effects.
One only needs to leave London for a few hours and travel the country and go to the poor places that were former hubs of industrial production. Many of the places are in astonishingly bad shape.
This one, like so many lately, all have been hammering me with this idea that Yang is predicting a dystopian horrible future.
On the contrary, I think Yang is fundamentally optimistic about the future and technology. He predicts that we will lose a lot of our current jobs and that we need to put in place a government safety net in the form of UBI, but I don't think he considers it a dystopia.
I'm frustrated by all the editorializing in the headlines that I'm seeing. If all you saw were all these headlines of late, you'd think Yang were some kind of "sky is falling" candidate. But actually I like him because I feel like he has a quite hopeful vision of the country and our future.
> We are experiencing the greatest economic and technological shift in human history, and our institutions can’t keep up. Without the Freedom Dividend, we will see opportunities shrink as more and more work gets performed by software, AI, and robots. Markets don’t work well when people don’t have any money to spend. The Freedom Dividend is a vital step to helping society transform through the greatest automation wave in human history.
Can anyone at Slate read a chart? US employment in manufacturing as a percentage of non-farm labor dropped from 32% post-WW2 to less than 10% today [1]. This change didn't start "sometime in the 1970s", but has been a consistent downward trend post-WW2. The low hanging fruit of automation (from mechanical feedback mechanisms to programmable logic controllers) are all pre-1970s inventions.
And so what if different jobs are created for those that are lost? The article itself admits those jobs will either be lower paying or require more advanced education. Job re-training is mostly a myth [2]. No matter what, an entire generation of unemployed will suffer. I grew up in Detroit. I know what happens when the jobs base shifts.
[1] https://fredblog.stlouisfed.org/2014/04/the-decline-of-manuf...
[2] https://www.nytimes.com/2017/02/23/magazine/retraining-jobs-...
And even this will only last so long. With ever more advanced robotics and AI, there will be fewer and fewer possible lower paying jobs as well as advanced jobs that average Joe could even be educated for. Humans have finite muscle power and brain capacity. Is it not obvious that as technology becomes more potent, we'll reach a point where it just doesn't make sense anymore to make the masses spend their days working bullshit jobs?
And that's just one area.
I agree on retraining. An average driver will not become a surgeon or a programmer (or whatever other hard-to-automate jobs are left).
Job re-training is more than a myth, it is another Reagan-era privatization scam, designed to funnel public money to private for-profit training centers and trade schools. Gordon Lafer's _The Job Training Charade_ is a great book on the subject.
So they claim AP and Yang are incorrect but also state there is no consensus. This piece seems more like it is trying to justify the warren gaffe in the last debate by muddying the waters. The truth is be it automation or outsourcing our economy is changing and we need to be prepared for it.
If automation was the problem, then US would be price competitive on goods with China. Somehow US automation is only good enough to eliminate jobs in the US, but not good enough to compete with cheap labor in China.
Whether by outsourcing or automation, the cause is the same: Loss of low-skilled jobs in return for cheaper products & services. The challenge is to find the best method to leverage those cheaper products and services to improve quality of life for everyone, especially those who's skills become obsolete.
Redfin has a tiny fraction of real estate sales, and hasn’t broken into it anywhere locally, or is showing any real signs that it will. Turns out it’s a little harder to self serve a home purchase vs a cab or vacation rental.
There's no reason to think the US has an advantage in automation. In fact, it's much easier as an automation engineer to design automation processes for the factory that's around the corner than to do so for a factory in another time zone that 90% of your team has never seen in person.
100% agree with regulation. That’s why US trade policy is the main cause of the decline. It should reflect regulatory arbitrage. It’s utterly pointless to save the environment in the US and poison it in China.
This (and the article's similar approach) is only half of the equation.
'If automation was the problem and cheaper than offshored labor, then US would be price competitive on goods with China'
There are two independent variables: the cost of offshore labor (China recently, SE Asia and Africa now) & the cost of automation.
Businesses are going to pursue whatever is most cost effective.
But people are incorrectly ignoring automation because it isn't a problem now.
Put more restrictions on offshoring labor (thereby raising its cost) and automation is going to start looking very important.
UBI seems like a poor response to the shifting nature of work. Yang himself implies that automation will "come for" some groups before others. I.e. subsequent subsets of the population will lose 100% of their income. Increasing the income of everyone seems like a poor response. If we want to support workers who worked or trained for a job that has been automated away why don't we...do that?
If we want to overhaul our society into a place that no longer forces people to work to live I'm also in favor of that! It's just different.
It seems like you're saying that UBI is more efficient we don't need spend resources on targeting it. I 100% agree for the general case of wealth transfer. I think it's very weak for addressing specific job losses.
So, let's say we have 100 people and 10 of them lost their jobs to automation but we don't know which. One option is the "Yang plan" of $12 a year ($1 a month), so we have a budget of $1200[0]. That spends $1200 giving $120 of assistance to the people we want to help. This plan is 10% efficient if the point is to help those who have lost their jobs. In fact, with a budget of $1200, we can spend up to $108 per person identifying if they lost their job due to automation and have the same efficiency (10%). That is a really high ceiling on the cost of conflict.
I'm very skeptical that in any real world situation the cost of identifying worthy recipients is greater than the "loss" of giving everyone else money. Again, only if the goal is helping workers who lost their jobs. Hell, even if you're wrong 50% of the time and give 15 people $12, you would need your method of identification to cost $60 (5x the benefit) for it to be 10% efficient!
Again, I favor UBI and I favor transforming society to function differently, but that's not helping workers who lost jobs.
[0] These are ofc not the real numbers Yang is suggesting
However, I agree UBI seems to be going to people who may not need it. However, I like the simplicity of it.
If you start into differing requirements down the line those will accumulate and you hit a slippery slope and it devolves into our current tax code nightmare with thousand pages of what it takes to be qualified for UBI.
So it's heavy handed but simple, which I like.
Maybe my experience is atypical, but I've seen, over and over, hiring driven by either 1) we have more demand than we expected, or 2) we have good reason to expect more demand and should hire now to support that.
I've never seen "we have money, but no extra demand and no reason to expect any, so we better hire". "We got a tax cut but have nothing for extra workers to do—better hire anyway" said no business owner ever.
Which is to say I have no friggin' idea what supply-side is going on about. Yeah there's probably some hypothetical situation in which growth can be supply-constrained, but in the presence of demand that problem will fix itself pretty quickly, guaranteed. The opposite clearly isn't true at all.
I also don't think he believes it will put everyone in those industries out of a job. I can see how the sound bites from the debate sound that way, but unfortunately he probably has to use the worse-case scenario type examples.
America changed its trade situation with China, which either made the US better off or worse off. (I'm guessing the economic consensus for is better off).
Basically the same applies to automation.
No individual factory worker or doctor or police officer made that happen, so the benefits and/or costs should be spread around equally. UBI is one tool for doing that. People who lose their job and need to retrain automatically get cushioned, which lets your society be more ruthless about creative destruction.
It's very hard (meaning impossible) to make such an assessment for the US as a whole. Some groups net benefited from globalization and trade liberalization, others net lost, for many it was a wash.
Remarkably, this is one of the predictions of mainstream economists (MSEs) that is empirically true. What they should have stressed more, therefore, is the distributional aspect of trade liberalization: that the gains from trade must be distributed to compensate the losers. The gains are so large that this could have been done and still leave something over for the natural beneficiaries of free trade.
What Yang is saying, and I TOTALLY agree on this point, is that automation or progress in AI is like that only ten times worse. We all know that tech is full of natural monopolies, while the economic gains are HUGE because they are aggregated over so many people/transactions/etc. and marginal costs are low.
Therefore we should think about reorienting our economies (talking globally here, not just US) to ensure that we don't see the same that happened with trade now with automation and AI. Namely huge segments of the population left behind "because market" and all the gains accruing to a handful of data oligarchs.
My point being, it isn't just robots and automation that reduce the labor workforce. Better data and analytics are also having an effect, a trend I don't see slowing down. As the market continues to shrink for the blue collar workforce, something will definitely need to happen so as to not disenfranchise large groups of people. Whether a freedom dividend is the answer or not is up for debate. I think it will help more than it will harm. There's always going to be someone who finds a way to game the system (the perceived welfare queens). For many, though, an extra $1000 a month would literally be life-changing.
The obvious followup to that whole point is "what are the comparative effect sizes of all of these various causal phenomena?" I don't happen to have the answer to that, but I feel like it's worth pointing to at least some mitigating factors.
https://fred.stlouisfed.org/series/MANEMP
There's a big, sudden drop in 2000.
It also cites a paper that says that the number of factories in the U.S. has been dropping (between 2000 and 2014)...
actually it is in 2001. Also in 2008. The years of big busts.
There's a big three-year drop that starts in 2001. Then it goes from that steep drop to a slowly-declining drop -- before that next massive "2008" drop (which lasts through December of 2009).
So it seems plausible that the loss of jobs was caused by specific events. (Whereas if it were the creep of automation, it seems like it'd be happening more gradually, factory by factory....)
I guess you can argue that the economic hardship of a bust forced companies into sudden and widespread cost-cutting measures like replacing humans with robots. But another study cited in the article argues against that theory. (The article acknowledges that automation has taken some jobs, but that it's a much smaller fraction, and that latching onto that as the single explanation makes us miss the other factors -- as well as possible solutions.)
Trucking is just a nice example that is easy to explain to people. But the overall trend is much broader and more complex involving 100s of thousands of IT workers incrementally removing costs.
In constant (inflation-adjusted) dollars, according to the US government's Bureau of Labor statistics, current earnings for production, nonsupervisory employees on private non farm payrolls is $23.65, in constant inflation-adjusted 1983 dollars for September 2019.
In February 1973 that was $23.33 an hour. Almost a half century of economic growth, in a good economy, and workers are making only 32 cents more an hour than they did 46 years ago.
If pundits were describing wages in the Soviet Union, this would be called 46 years of stagnation and so forth. Whereas we have someone from the Bill Gates funded corporation Slate telling us "the overall job market is fine" and other niceties.
What is the “cut” workers can expect from their output charted through the last century - this number must exist
Ever since the industrial revolution jobs have gone by the wayside. We no longer have wagon wheel makers, or people cutting pins from long spools of wire. If you just look at the jobs going away, you're missing the other side of the picture, the jobs being created.
Jobs are essentially just things that humans do to improve our lives. If you imagine that you were infinitely rich, what kinds of things might you want someone to do that isn't getting done? I've got tons of housework and yardwork, construction work, programming ideas, hell my brain is overflowing with stuff that will never get done. Too many jobs. All those things are jobs. Most of them cannot be automated anytime soon.
I don't think Yang is missing the other side of the picture. He's saying that society sucks at getting displaced people to the other side in a humane manner.
http://www.shadowstats.com/alternate_data/unemployment-chart...
const capital = () => [capital(), capital()]
Humans are an implementation detail in that scheme.Economic power (the ability to extract, move and transform resources to perpetuate the economy) is gradually moving from people to capital. At some point in the future, it will not make sense for the industry to keep on feeding people, and people won’t have any power left to do something about it.
The jobs you mention are peripheral things meant to keep meatware happy while it is still economically relevant.
There are people who are starving today, whose will to live and imagination is as strong as yours. It turns out they are not economically relevant, and thus we let them die. I don’t expect an automated industry to care more about about us than we do about the unfortunate folks I just mentioned.
Also the tint of anti Asian American racism - similar to SV when the hiring team or management group tries to talk themselves into finding reasons to not like a qualified candidate that does not fit the mold of the obediant Asian worker drone. Usually done insidiously to cast doubt on a person's character etc.
Retaining programs have a 0-15% success rate. It’s basically useless. What happens is that middle aged people get their jobs automated away and they are left with nothing. Look at what happened after manufacturing jobs left the Midwest. This is the bigger problem is that large swathes of the population will have no viable jobs after automation.
So what happens after you put the screws to trade? That certainly isn’t going to decrease automation as an alternative. What happened from 2000-2010 doesn’t really matter, they should save their breath.
Deals with the issue of why current types of automation are different to industrial automation an why we won’t be creating new “machine fixer” jobs when the new machines take our old jobs.
This seems to beg the question: "Would Amazon be less successful if it paid a living wage to those who labor in its warehouses and those who work to manufacture the products it sells?"
2. Are you presuming no one else will pay them a living wage either so they MUST work at Amazon?
3. Are Amazon warehouse workers prevented from getting living wage jobs elsewhere?
1. Yes 2. No & Yes 3. Yes
And this is why Yang is the most prescient of any of the candidates. He looked at the problem, broke it down into its basic components, extrapolated what was going to happen, and found the most straightforward answer (UBI) from the large search space of possible solutions. You know, like a computer programmer would.
So I fundamentally disagree with the article for the following reasons:
* If I had a budget of a few million dollars and a small team of geeks like me, I could write a (non-general) AI myself in 2-10 years that would pass the Turing test in any specific area, a bit Like IBM's Watson. And I'm nobody. The reason this won't happen is that I don't have the social proof (I haven't won the internet lottery or proceeded through the graduate level accolades or submitted papers so anyone would listen to me) so I'll likely spend the rest of my life making rent instead of making any meaningful contribution to society. And there are a million software developers around the world just like me. And a million architects who will never design a building. And a million biologists who will never cure a disease. This is the great tragedy of the commons of our time, that creates the underemployment that contributes to the wealth inequality that is the one thing holding AI back. You know, the very thing that Yang is trying to solve with UBI.
* I agree that shortsighted trade policies started by Reagan in the 80s with his "I'm from the government and am here to help" deregulation anti-pattern, exacerbated by Clinton with NAFTA, and beaten like a dead horse with George W Bush's offshoring/tax cut for the wealthy blue pill orgy, is the second biggest reason that we may have passed the point of no return on preserving (at least American) jobs. But half the US population won't concede this point or think outside the box for empathetic solutions, so I don't predict that this will be fixed before the singularity. It's a moot point now.
* I predict that the tech industry will go the wrong direction with AI, in roughly this order: industry invests heavily in cybersecurity and profit-driven artificial intelligence research to better exploit users by leveraging their shopping addictions, social/mobile bubble pops as independent developers are undermined further by receiving an ever-smaller slice of the pie, a global recession rivaling the dotcom crash and housing bubble pop hits which halts progress in social causes similarly to what happened during the lost decade of the 2000s, the US doubles down on trying every wrong thing before being forced to do the right thing (further tax cuts for the wealthy, privatization of remaining government services, no UBI because there is no money for that, further regression into service industry feudalism), sometime between 2025 and 2030 the world comes out of recession but now all money passes through an online gatekeeper (whatever follows Amazon) as the world transitions from sovereign nations to having its monetary policy determined by corporations, Stockholm syndrome far exceeding the Trump phenomenom grips the world in luddite-inspired rejection of magic technologies like AI, climate change falls from the forefront of concerns as simple human incursion into every last wild place on Earth creates an instability in civilization due to having so many insurrection cells crossing national boundaries that civic discourse gives way to political infighting and canabalistic government policy, a third world war or dystopian new world order or singularity hit all at about the same time between 2040 and 2050 so that only the rich and powerful have oracle-level AI technology and live in gated communities while the world burns, the masses find that they still need food in VR and then rise up and something happens which unfortunately can't really be predicted past this point.
I really hope that I'm wrong. But the last 20 years have been so bizarre compared to what I thought was going to happen while watching the Matrix in 1999 that I'd argue that we're already living in the early stages of dystopia. So I think we have a year or two left before the next planned recession takes the choice away from us. If even Hacker News is skeptical of the things that Yang is suggesting, then we are well and truly hosed.
But 1k a month would make this happen?
If 1k UBI is causing this tragedy of the commons then you owe it to yourself to fix this, earn more, move to LCOL area and start curing diseases
That's 1.2 million.