Tag: inequality

US: President’s top economic adviser rejects basic income

US: President’s top economic adviser rejects basic income

Jason Furman, President Obama’s top economics adviser, rejected the idea of a universal basic income in remarks made on Thursday, July 7, at a White House workshop on automation.

The last of four workshops on automation co-hosted by the White House Office of Science and Technology Policy was held on Thursday, July 7 at New York University in New York City, New York.

At this workshop , Jason Furman , an economist who has served as Chairman of President Obama’s Council of Economic Advisers since June 2013, present prepared remarks entitled “ Is This Time Different? The Opportunities and Challenges […]

Obama adviser warns that robots could worsen inequality

Obama adviser warns that robots could worsen inequality

Artificial intelligence is an innovation that must be pursued, President Obama’s top economic adviser said Thursday, but greater automation of work could increase income inequality and push some people out of the workforce if the right policies are not implemented.

Speaking at New York University, Council of Economic Advisers Chairman Jason Furman said he rejected very pessimistic or highly optimistic views of the effects that automization will have on work, saying that labor markets can adjust to technology making certain work obsolete. But those same changes, he said, have also resulted in extra inequality in the past, and that dynamic […]

The race between machines and humans: Implications for growth, factor shares and jobs

The race between machines and humans: Implications for growth, factor shares and jobs

Concerns that new digital technologies, artificial intelligence, and robotics will create widespread technological non-employment are now widespread. Various recent labour market trends, ranging from declines in US labour force participation to increases in wage inequality and the share of capital in national income, are seen as harbingers of this new normal (e.g. Brynjolfsson and McAfee 2012, Akst 2014, Autor 2015, Karabarbounis and Neiman 2014, Oberfield and Raval 2014). A major shortcoming of the typical arguments about technological non-employment is that there is no clear reason why the effect of new technologies will be different this time than in the […]

The return of the machinery question

The return of the machinery question

THERE IS SOMETHING familiar about fears that new machines will take everyone’s jobs, benefiting only a select few and upending society. Such concerns sparked furious arguments two centuries ago as industrialisation took hold in Britain. People at the time did not talk of an “industrial revolution” but of the “machinery question”. First posed by the economist David Ricardo in 1821, it concerned the “influence of machinery on the interests of the different classes of society”, and in particular the “opinion entertained by the labouring class, that the employment of machinery is frequently detrimental to their interests”. Thomas Carlyle, writing […]

Re-educating Rita

Re-educating Rita

IN JULY 2011 Sebastian Thrun, who among other things is a professor at Stanford, posted a short video on YouTube, announcing that he and a colleague, Peter Norvig, were making their “Introduction to Artificial Intelligence” course available free online. By the time the course began in October, 160,000 people in 190 countries had signed up for it. At the same time Andrew Ng, also a Stanford professor, made one of his courses, on machine learning, available free online, for which 100,000 people enrolled. Both courses ran for ten weeks. Mr Thrun’s was completed by 23,000 people; Mr Ng’s by […]

March of the machines

March of the machines

EXPERTS warn that “the substitution of machinery for human labour” may “render the population redundant”. They worry that “the discovery of this mighty power” has come “before we knew how to employ it rightly”. Such fears are expressed today by those who worry that advances in artificial intelligence (AI) could destroy millions of jobs and pose a “Terminator”-style threat to humanity. But these are in fact the words of commentators discussing mechanisation and steam power two centuries ago. Back then the controversy over the dangers posed by machines was known as the “machinery question”. Now a very similar debate […]

Rise of the robots and a jobless future

Rise of the robots and a jobless future

BY MURRAY BECOTTE

SILICON Valley entrepreneur Martin Ford paints a frightening picture in his book Rise of the Robots: Technology and the Threat of a Jobless Future. Ford argues that artificial intelligence and robotics are causing a revolution that won’t be the same as the industrial revolution where as old jobs were eliminated and more were created with the new technology of the era. Ford believes that as technology continues to accelerate and machines begin taking care of themselves, fewer people will be necessary.

Computers can now work things out for themselves using trial and error to develop their own […]

How About Some Real 21st Century Thinking?

How About Some Real 21st Century Thinking?

For several years now, I have thought it would benefit the nation to simplify our anti-poverty approach…even though there is currently a gradual reduction in the number of households living below the poverty line. I have thought it would be a more enlightened, practical, efficient and effective approach to guarantee everyone a certain minimum income.

Each legal adult resident might receive $20,000 per year and each minor $10,000. Or in many technical proposals of this nature, each would get a guaranteed after tax income of this nature if their own resources fell below a certain level. In my mind, the […]

Manufacturing jobs return to US during election year – but not quite like before

Manufacturing jobs return to US during election year – but not quite like before

An employee works on an assembly line producing automobiles at a factory in China. Photograph: China Stringer Network / Reut/Reuters When Fred Robinson moved to his cottage in 1960, it was on little more than a dirt lane surrounded by cotton fields. For 42 years, like so many others in Cleveland County, North Carolina, Robinson made his living turning that cotton into cloth, manning a weaving machine at the local Dover mill. His starting salary, in 1949, was 97 cents an hour.

In a familiar story, nearby textile mills closed – and with them went the jobs. From when Robinson’s […]

The Wrong Inequality Solution: No One Has Anything

The Wrong Inequality Solution: No One Has Anything

Robots are presented at the Robotics event Innorobo in La Plaine Saint-Denis on May 26, 2016. / AFP / ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images) The approach to the inequality question has typically been how to either create or redistribute wealth so that those at the bottom of the economic ladder have more. Inherent in that approach is an assumption that societies have the time and choice to lift up those without, compressing the difference between haves and have-nots.

But there’s another approach, one that we seem blindly headed for, that could largely reach a reduction in […]