Recently, there's been an interesting three-way debate between James Surowiecki, Kevin Drum and Ezra Klein on robots and the future of jobs. Surowiecki was first out of the gate with a lengthy article in Wired, "Robopocalypse Not", making a strong case, in my view, that robots are highly unlikely to take all or even most of our jobs. He covers--as I did in my Vox article on the future of jobs--the mismatch between slow productivity growth and the supposed rise of the robots, and the lack of evidence in the historical record for high unemployment that is technologically-generated. Among other good points he makes in the article is the following:
THE PECULIAR THING about
this historical moment is that we’re afraid of two contradictory futures at
once. On the one hand, we’re told that robots are coming for our jobs and that
their superior productivity will transform industry after industry. If that
happens, economic growth will soar and society as a whole will be vastly richer
than it is today. But at the same time, we’re told that we’re in an era of
secular stagnation, stuck with an economy that’s doomed to slow growth and
stagnant wages. In this world, we need to worry about how we’re going to
support an aging population and pay for rising health costs, because we’re not
going to be much richer in the future than we are today. Both of these futures
are possible. But they can’t both come true. Fretting about both the rise of
the robots and about secular stagnation doesn’t make any sense. Yet that’s
precisely what many intelligent people are doing.
The irony of our anxiety about automation is that
if the predictions about a robot-dominated future were to come true, a lot of
our other economic concerns would vanish. A recent study by Accenture, for
instance, suggests that the implementation of AI, broadly defined, could lift
annual GDP growth in the US by two points (to 4.6 percent). A growth rate like
that would make it easy to deal with the cost of things like Social Security
and Medicare and the rising price of health care. It would lead to broader wage
growth. And while it would complicate the issue of how to divide the economic
pie, it’s always easier to divide a growing pie than a shrinking one.
Alas, the future this study envisions seems to
be very far off. To be sure, the fact that fears about automation have been
proved false in the past doesn’t mean they will continue to be so in the
future, and all of those long-foretold positive feedback loops exponential
growth may abruptly kick in someday. But it isn’t easy to see how we’ll get
there from here anytime soon, given how little companies are investing in new
technology and how slowly the economy is growing. In that sense, the problem
we’re facing isn’t that the robots are coming. It’s that they aren’t.
Get it? If this were really happening, we'd be rich (rich I tell you!)--and that would be great. Unfortunately, that does not, as yet, appear to be the case.
Kevin Drum, an adamant proponent of the robots-will-take-all-our-jobs thesis, replied to Surowiecki in a post on his blog, which argued, in essence, that This Time Is Different because AI is a true game-changer but it isn't really here yet so that's why slow productivity growth, etc.
Ezra Klein did not find Drum's argument convincing. Klein replies as follows:
I take slow
productivity growth more
seriously than Drum does. It’s true we don’t yet have AI. But we have seen an
explosion of information technology that should’ve put many jobs at risk, and
in some cases clearly did. The stories we can tell about why ATMs would replace
all bank tellers, or online learning would displace most teachers, or digital
diagnostic tools would make many doctors superfluous, are at least as
convincing as the stories we can tell about AI-driven job displacement, and the
technology is already here.
And yet there are more bank tellers
today than there were in the 1970s. And online learning
hasn’t dented the demand for teachers. And WebMD has mostly sent people
scurrying to see their doctors. What happened?
Toward the end of his
post, Drum suggests that a better argument for why AI might fail to deliver
mass unemployment is that “robots will be smart but never very sociable, so
humans will all move into jobs that require social skills.” This, however, is
part of the explanation for why IT hasn’t done more to move the productivity
needle either. People want to interact with other people, even when they’d be
almost as well off interacting with a computer interface. And so even when IT
makes it cost-effective to replace people with computers, that often leads
companies to plow the savings into more people to work alongside the computers
(which is largely what happened in banking).
The productivity story
isn’t surefire proof that AI won’t upend employment. But it should make us
skeptical of confident predictions that it will.
Which brings us to the
industrial revolution. Drum is right that we shouldn’t assume a past period of
technological change is directly analogous to a future period of technological
change. But one lesson of the past few hundred years of technological change is
that human beings are pretty good at inventing things to do after automation
pushes out the things we used to do.
As I understand the
argument for AI-driven mass unemployment, the basic theory is that human beings
won’t be needed to do most jobs, and so they will be replaced, and left in a
state of useless pleasure seeking and mischief making…..
[But] humans today are [already]
a massive useless class. What sort of job is “editor of an explanatory
journalism web site” next to “farmer”? Would our ancestors value the work of
psychologists or customer service representatives or wedding planners or
computer coders?
But this, to me, is the
story of labor markets in the past few hundred years: As technology drives
people out of the most necessary jobs, we invent less necessary jobs that we
nevertheless imbue with profound meaning and even economic value.
The AI revolution, if
it comes, does not seem likely to follow a wildly different path. The
technology’s diffusion is likely to be slower than people think — I suspect we
will have trucks capable of making driverless deliveries long before regulators
permit them to operate without a human in the cab, and computers capable of
making diagnoses for decades before human doctors aren’t required to look over
and explain the readout — but as it comes, humans will find things other humans
want them to do, and they’ll decide those things have value. We’re good at
that.
Yes, we are good at that. And that's why this time is not likely to be different. Now if those robots could just hurry up and get here so we could all be rich.....