Showing posts with label jobless America. Show all posts
Showing posts with label jobless America. Show all posts

Monday, February 10, 2014

Days of Our Work Lives: An unvarnished look at work today: Part I: David's Saga. Episode 16: The End of Jobs

Part I: David's Saga

Episode 16
The End of Jobs

In the previous episode, David and Susan tried to figure out the wisest approach to charity.  Having enjoyed the unusually deep conversation, they decided to go even deeper: "What will happen when ever more jobs get automated and offshored?"

This time, it wasn't much of a dialogue. It was something David has been thinking about for a long time:

"All we keep hearing is how jobs are disappearing. First it was ATMs replacing tellers, then self-checkout replacing supermarket checkers. Now they're developing driverless vehicles, robotic fast-food chefs and servers, baristas, and bartenders. 

"Wonderful, transformative teachers will, on video, teach classes using immersive simulations and interactivity. The human touch will be provided by lower-paid paraprofessionals. That will eliminate millions of teaching jobs, from elementary school to graduate school.

"IBM is developing a robot that will replace those annoying clothing sales clerks---It will use a laser to instantly get your measurements and walk you to clothes and the retailer's website items that will look great on you.

"IBM is also developing Dr. Watson, software aimed at being better than human doctors at diagnosing and recommending treatment. Indeed, artificial intelligence is replacing all sorts of professionals, from accountants to insurance adjusters.

Susan interrupted: "They've always said that every time a technology was invented: the cotton gin was going to eliminate farming jobs. The car was going to eliminate blacksmith and buggy-whip makers. Yet every time, more jobs were created."

David replied, "This time will be different because unlike previous generations of manufacturing, when you develop a piece of software, just a few people are required to distribute it worldwide. Besides, the cost of hiring an American has gone wild, with ObamaCare merely the latest on top of disability, worker's comp, Social Security, ADA compliance, Family and Medical Leave, and defending the ever increasing number of worker-rights lawsuits. With demographic trends and the Democrats' far superior messaging machine, Internet strategy, and ground game, and with the media at their back. this ain't no pendulum: it's a long-term trend. There simply won't be enough jobs.

Susan asked, "So what's going to happen?"

"In the short run, the middle class will keep getting hollowed out. People such as software engineers for companies that make silicon-based products--the Apples, Googles, Amazons--will do fine. And people in such non-offshoreable, not-automatable professions like dentist, occupational therapist, and fitness trainer will also be okay. But most other folks will have no choice but to take a menial service job like restaurant worker."

Susan asked, "But won't that cause a revolution?"

"It could. To avoid it, the government will have to keep extending unemployment checks indefinitely, or institute a guaranteed income. 

"With few people making a good income, only companies that provide the basics will stay viable. Even car manufacturers will go out of business because people will keep their cars longer and longer, repairing and repairing rather than replacing with new. People won't be able to afford to fly--the cost of the airplanes and the fuel will be beyond what people can pay, even if the airlines were to make no profit and the government were to nationalize them. 

"And of course, it becomes a vicious cycle. The more companies that go out of business, the fewer the jobs, and the less income people make. 

Susan asked, "So what will happen in the long-term?"

David replied, "My best guess is that we will become a much less materialistic society. We'll live very simply, much like we did centuries ago except that with computers and software being cheap, everyone will have technology to enhance their lives. The focus of government and private initiatives will be on the basics like health care, which will continue to improve thanks to that ever improving technology. 

"People need to work to have a sense of meaning, so they will continue to work at low or even no pay, just as so many journalists, artists, even reader reviewers on Amazon do today. 

"And we'll have more spare time, which we will, hopefully, use wisely. Rather than getting drunk or stoned on pot--which I'm sure will be legalized nationwide if only to anesthetize the population through its jobectomy--more people will focus on creative expression through writing and the arts, and through relationships: mentoring, friendship, and family. And the lack of materialism will be good for the environment."

Susan asked,, "But is human nature hard-wired to compete, to be acquisitional?

David replied, "It's possible. And if a few such people start that, it would trigger others to follow and we could end up back where we were. 

"But I feel the need to be a little more optimistic than that about humankind. If so, crazy at it may seem, the end of jobs, may in the end, net, be good for humankind."

Susan responded, "So every time I hear of another job getting roboticized, I should cheer?"

"Maybe."

And with that, David and Susan stared into the fire until all that was left in their personal pyrospectacular were a few embers floating into the chimney. Alas, tomorrow was to be less peaceful.

HERE is the next and final episode of David's Saga.

Monday, March 1, 2010

Why Any Recovery Will Be Jobless

I recently read the summary of a panel presentation of leading employment attorneys, which made clear to me why an economic recovery, assuming we have one, will be a jobless one.

Why would an employer want to hire when he must incur all of the following:
Even if an employer's intent is non-discriminatory, if an employer's decision to hire, promote, or terminate employees has "disparate impact," on a gender, racial group, or workers over 40, that may be grounds for a discrimination lawsuit against the employer.
  • Large and complicated payroll costs beyond salary: Social Security, Medicare, Medicaid, Workers Compensation, Unemployment Insurance (now up to 79 weeks,) plus various state and local levies.
  • Mandated leave: 12 weeks per year with rights of rehiring (the Family and Medical Leave Act) which may be expanded by the '"Healthy Families Act," which would mandate up to 56 hours of paid sick leave to take care of themselves or a family member very loosely defined: "anyone closely associated with an employee."
  • The Americans with Disabilities Act, in addition to adding pressure on employers to hire people with physical and mental disabilities, requires employers to provide "reasonable accommodations" for all such employees.
  • Laws granting plaintiffs lower burdens of proof regarding discrimination as well as sexual harassment. For example, an employer can be held liable for an employee's being harassed, even if the employer is unaware that the harassment occurred. The financial and human costs of defending such lawsuits are enormous.
  • The proposed health care legislation will force employers to pay for the ever escalating health care costs.
  • New legislation makes it easier for workers to organize into unions, which, of course, increases employer costs while making it often prohibitively difficult to fire even low-performing employees.
If you ran a business, wouldn't all those mandates make you want to hire as few people as absolutely possible--even if the taxpayers gave you $5,000 per? That certainly wouldn't seduce me-I'd rather stay small than endure all those burdens and increased risk of having to close down my business.

To the extent I'd have to hire, I'd feel forced to use independent contractors on a just-in-time basis, and would outsource/offshore as much as possible. I might, for example, find such workers using websites such as odesk.com, elance.com, guru.com, virtualemployee.com, ifreelance.com, and these that Tim Ferriss, author of The Four-Hour Workweek recommended when I interviewed him on my radio show yesterday: www.99designs.com, www.crowdspring.com, www.asksunday.com, and www.hiremymom.com

I believe that President Obama and the Democrats are truly trying to help employees but the inadvertent effect of their initiatives will ironically be to eliminate jobs, not create them.
 

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