Tag: automobile industry

Will a Robot Steal Your Job?

Yesterday, The Guardian published a provocative opinion piece titled, “Are Robots Going To Steal Your Job? Probably.” 

At first glance, the author’s pessimism would seem justified. From robotic gardeners and farmers to robotic pizza delivery services, it seems like every day robots make new forays into jobs traditionally done by humans. 

But pause to consider technology in historical perspective. Pessimism about new technologies is not new. In 1918, people decried automobiles for destroying the livery stable business. In the early 1800s, frustrated textile workers known as “Luddites” famously smashed apart mechanized looms. The Guardian author himself admits that his fears echo those of the Luddites: 

This is not a new concern. Since at least as early as the time of the Luddites, in early 19th-century Britain, new technologies have caused fear about the inevitable changes they bring. 

The Luddites and livery stable proprietors were correct to realize that new machines would utterly change their industries, but they failed to appreciate the overall effects of new technologies on human wellbeing. 

Banning mechanized looms would have prevented everyone from enjoying cheaper clothing. Similarly, banning automobiles would have robbed everyone of enjoying modern transportation. 

It is certainly true that technological change makes some jobs obsolete, but it has also made humanity better off in many ways. Importantly, it has led to the creation of new jobs. 

In fact, technological progress tends to create more jobs than it destroys. The new jobs tend to be better, while the eliminated jobs tend to be difficult and dangerous. 

The debate over the precise ways in which robots will affect human employment, productivity, incomes, leisure time, and living standards rages on. Cato’s upcoming forum, “Will a Robot Take Your Job?” will tackle these questions and more. Please consider registering here.

President Obama and the Auto Industry

Back from vacation, I’m catching up on things I missed last week. Dan Ikenson did a fine job on President Obama’s boasting about how he saved the automobile industry. But a few days later Glenn Kessler, the Washington Post’s “Fact Checker,” was more brutal:

We take no view on whether the administration’s efforts on behalf of the automobile industry were a good or bad thing; that’s a matter for the editorial pages and eventually the historians. But we are interested in the facts the president cited to make his case.

What we found is one of the most misleading collections of assertions we have seen in a short presidential speech. Virtually every claim by the president regarding the auto industry needs an asterisk, just like the fine print in that too-good-to-be-true car loan.

Here’s a sample of the specific analyses:

“GM plans to hire back all of the workers they had to lay off during the recession.”

This is another impressive-sounding but misleading figure. In the five years since 2006, General Motors announced that it would reduce its workforce by nearly 68,000 hourly and salary workers, creating a much smaller company. Those are the figures that generated the headlines.

Obama is only talking about a sliver of workers — the 9,600 workers who were laid off in the fourth quarter of 2008.

And that’s why President Obama’s speech was awarded Three Pinocchios.