Wednesday, October 8, 2014

The Economist, the World Economy

Wealth without Workers, Workers without Wealth


43 comments:

  1. The author provides three reasons the progression of technology will impact more people in a wider range of jobs. Regardless, the author believes the digital revolution is good. He argues that the government should not raise minimum wage, raise tax rates on rich, and implement more rules that make it harder to fire people. Instead, the government raise the productivity and employability of less skilled workers (minimal intervention), provide better housing policies, invest in transportation and providing/improving the education system. Even with all of these, he argues, the government will still need to wage subsidies and ensure closing loopholes that the elite benefit from. All of these suggestions sound great but my confidence in the government doing this is small.

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  2. One of the points I found most intriguing about this article was the suggestion of life long learning and removing the focus of education off of just the young. Many people that are currently in the unemployed population are simply not trained or equipped to to fill jobs in an ever advancing and increasingly technologically oriented world. This is an area where the government could invest to make a real difference at the root of the problem. Re-educating the workforce and training aimed at specific and necessary skills will create a win-win situation in which people can get jobs, the economy improves, and we can continue to advance in ares such as green initiatives or technological progress in new areas. Another thing that caught my attention was the different accounts of technology companies merging. We have seen this with social media companies and also some of the largest cable companies. This could potentially be harmful not only in the job market but also for consumers with the decreasing competition. This is yet another area where the government has the opportunity to step in and prevent these type of mergers.

    Jack O'Connor

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  3. Something that I found to be very interesting to me when reading this article is that more employees have been replaced by computers because of the unwillingness of business owners to pay more for human workers, but rather pay less for computers who can do the job quicker also for less. I also agree that education should be continuous throughout people's lives so that they can decrease the chance of falling behind as society continues to become more technologically advanced. Although the author seems to criticize and praise the more advanced society, I seem to find that this more advanced society should be praised. Because society has become more technologically advanced, more people are able to communicate better with each other through social media and smart phones, which has many great benefits. I believe that there is no way to stop the progression of technology because of the great demand for better and faster communication.

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  4. I completely agree with what the author had to say about the advancement of technology. It is alarming to know that technology is being utilized over our skills. It is even more alarming because for many years people have taken time to earn an education, which is also very expensive, to acquire specific skills to practice in the real world. If technology is replacing people, is there a point to invest time into acquiring skills that have now become obsolete due to the advances in technology. Of course, there are many advantages that come with technology, but if it is going to used to refrain people from work, would we have a purpose any longer?

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  5. I like to think that emerging technology doesn't necessarily mean the future of the work force is bleak. For instance, with vast technology implementation, one who have to take into account, both financially and economically the effects of easier and attainable third party materials. Yeah workers might be paid less, but at the home front, things like tv, toys, materials to help one enjoy themselves, become cheaper and sustainable. Technology then and will be better for the economy and for the people. I like this article a lot and significantly agree with most if not all that was mentioned, especially about raising productivity of low skilled workers.
    -Crash

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  6. Obviously, as we have moved into the future, we have seen the technological revolution move into more and more parts of everyday life. The workforce has been nearly overtaken by machinery who can do human jobs faster, more productively, and for less money over time. This in turn, has led to greater inequality, as workers are finding it increasingly difficult to climb the ladder from worker, to supervisor, to executive, to CEO. While part of this is due to its natural difficulty, it has become more attributed to the rise of machinery in American workplaces.

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  7. I agree with the author of this article when they argued that the government needs to investment in education initiatives to assist people through he digital revolution. The increased use of technology greatly effects all workers of any class. As technology continues to advance, the need for workers to keep up increases otherwise individuals may lose their jobs.I have seen two examples of this in the past few months: I work for an office on campus and several employees were recently let go due to their inability to keep up with new programs implemented by the office. These employees were much older than us and did not have the skills to keep up with the changing technologies. Similarly, a grocery store near my house recently installed self check out machines and one of my friends (a normal cashier) was laid off.

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  8. I agree with the author's claim that governments should help prepare their populations to adapt to the rapid advancement of technology. In order to work efficiently in this new job market, the author states that the government should: revamp education, invest in transport, and have better housing policies.

    Those ideas are great and something I advocate as well. However, I the government should be careful about how they do that. The author likens this new job market to the job market that was created with industrialization. During that epoch, the US government made changes to housing policies, education, and transport but these changes were not good for a sector of the nation (minorities). Many of the housing policies that the government enacted specifically in urban areas only served to create de facto segregation and racialized poor areas. These areas limited certain people's access to a quality education and access to higher paying jobs. It relegated them to areas with poor infrastructure and generally depraved communities. The legacy of these policies are still seen today. Before governments decide to enact new changes for the new market, they should make sure that they fix the mess they left when they changed policies for the old market.

    -Erica Puentes

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  9. When reading this article, I felt that the three reasons in which people are feeling the effects of technology that the author highlights were valid. I think this article succeeded in showing both the positive and negative outcomes that these new forms of technology have on our present and future lives. The author chooses to show that although these technological advances will have an impact on developed countries it will further create a gap between developed and non-developed countries. As America moves forward in creating technologies that take the place of skilled workers, people in third world countries are still attempting to learn these skills that we have had access to for years. This inequality will only grow as we become less reliant on people.

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  10. I think that a lot of time the news media and politicians press for more and more jobs to be created, but don't stress enough the importance of the quality of these jobs. This article mentions the industrial revolution and compares it to the modern technological revolution. The industrial revolution is looked at historically as terrible due to the unsafe and harsh working conditions that the lower class had to endure at the time. I think that the modern technological revolution has the appearance of being more prosperous for all, not just the big bosses, but I think that much of that sentiment is false. While the working conditions don't compare to those during the industrial revolution, the people who are benefiting are the same. If you were to look up the disparity between the highest paid employee of apple and the lowest paid employee, I believe the results would be staggering. I agree with the predictions that the article makes for the future of employees and the work force as a result of the technology boom.
    - Ana Kyriakos

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  11. I found this Economist article to be highly depressing. Certainly, technology will continue to advance and replace human labor; however, I hope that not all people will become obsolete. If technology and machinery are going to take over the entire work force, the rich will continue to get richer and the income inequality will drastically increase.

    Lindsey Stalnaker

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  12. I found the article interesting due to the fact that it looks negatively upon the technological revolution. As is mentioned when one looks at the industrial revolution, although great advancements were made, living conditions worsened and so did the environment. The same cannot be said about the way technology has developed. The creation of the internet for example has allowed the world to be connected in a grand scale. Although as the author points out the more technology increases the more people will have to worry about their jobs. As machine intelligence increases it will be able to replace more and more of the human labour force. Whereas the industrial revolution created hundreds of jobs in factories, the tech revolution allows firms to be created with very little staff.

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  13. This article raises several interesting points. I agree that any massive structural/technological changes in an economy will result in the displacement of workers. It is unfortunate because they come from lower income areas and have to work in low skill areas. I agree the best way to fix the problem is education to increase the skill set of workers. While governments cannot solve every problem, they can certainly help. They should provide unemployment insurance. They should help with making college affordably. I disagree with the article in saying that raising the minimum wage is an issue that will only hurt the poor in the long run. The minimum wage being higher is a good way to make sure some workers have higher incomes to support their families and give them better access to necessary resources to move up the socio-economic latter. It also means these people are spending more money, which results in higher economic activity.

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  14. I never before considered that computers and automation of jobs could lead to an increase in things like xenophobia. I obviously see how it could result in a lower amount of jobs available, but I guess I never extrapolated it back to the idea of people looking for scapegoats to cover for their own personal lack of useful skills. I definitely think I will contemplate this more.

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  15. I found this article to be very interesting especially in today's world. Technology is the future of our workforce and that is scary.Companies will replace their workers with machines. If this is to save money, that is ridiculous to pick machines over human skill. I do not feel that all workers will be pushed out of the workforce but only extremely educated people will have a place in the force. However, that is not fair to those who can not afford college or are not able to do the work. There has to be some middle ground where people and technology are being challenged and employed.

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  16. This phenomenon that is going on in the technology world can be seen as both good and bad. There is so much advancement in technology today that many aspects of industry and life in general are easier and more efficient. One side effect of this is that technology is becoming so advanced, that it is replacing the inefficiency of human beings in the work force. This is obviously not good because if machines replace workers, workers will no longer get paid. If the workers do not get paid, there is no way for them to further stimulate the economy by buying goods because they would have no money to spend. At the same time, machines make for more efficient, cost effective work. When a machine can produce a product cheaper and more efficiently, it drives down the cost it takes to both manufacture and sell the good. This technology is widening the gap on economic status because there are a small percentage of people that are making a lot of money off of this technology, while the majority of people are sitting around and waiting for their jobs to be replaced by machines.

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  17. This article kind of goes off the one about computers and inequality in the way that computers are replacing a lot of jobs that were traditionally run by people, especially machine jobs. I am from Pittsburgh which is a city built on steel mills (e.g. The 'Steel' City), and I am able to see first hand that most (if not all) of the steel mills are not in existence anymore and are replaced with new technology that is able to do the same thing.

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  18. I definitely believe that this article is on the right track. We can see even now how jobs are being replaced by machines. I have to wonder though, as technology advances will it play out as they described in this article? I think it could very well help employee's to bridge the gap. However, if something isn't done then this could be a disaster.

    -Matt Fera

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  19. Technology replacing humans is not a new trend; however, it can be seen as a good and a bad thing. Technological innovation creates jobs for people in STEM fields (and I also think I could argue that it creates jobs for maintenance workers), but pushes people out of jobs, such as, routine physical and mental labor. However, I think with the innovation of new products and the public's reception to new products (accepting and even inviting), it will create a net for jobs. I believe that this boom of the technological age is really just a transitory period, and, as time goes on, people will need to maintain and possibly manufacture the products that are being innovated during this time period. Technological innovation leads to a change in the status quo, and as generations die out, adaptations to old jobs will lead to new jobs, that are much the same but in a different sense.

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  20. I found this to be a very interesting article. The article talks about the upheaval and how it affects the people that are low and mid skilled. It talks about how the advance of technologies are replacing or putting actual jobs of people at risk or threatened. Yes I agree that technology is the dumb down of society because it makes people less proactive and it replaces jobs that could be beneficial to people. The article makes a good point about how simply regulation is not the answer to improve our current state, that raising minimum wages will only replace workers eventually by machines. The best thing governments can do is to raise the productivity and employability of less-skilled workers. That education will be essential for both young adolescences and adults themselves to keep up with the changes in technologies. I completely agree with that because in order to understand and operate advancing equipment’s and technologies, people have to be educated in how to do so.

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  21. I think that the message of this article also points to how important education will be in the future of our country. Jobs requiring low skill levels are already getting replaced with technological advancements, as this article has stated, but this opens up a lot of opportunities for mid to high skilled workers. These new technologies need engineers and technicians to operate accordingly, and these jobs require high levels of education. This is also a reason to make higher levels of education more affordable.

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  22. This upheaval and replacement of low and mid-skilled workers with technology advancements reminds me of the bourgeoisie/proletariat oppressive relationship. Once the elite find newer, cheaper ways to make products that replace people with tech that they don't have to worry about paying. I did like how the author noted that regulation and making the minimum wage higher isn't going to resolve anything- it'll only progress the replacement process. We have to educate workers better, make their work more productive and reliable, and get people to understand the importance of low- and mid-skilled workers.

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  23. This article highlights how the growing computer/internet industry is providing great wealth to few individuals. It does not provide jobs for workers and securities. Machines and computers have already begun to replace man labor. However, no we're beginning to see them replace skilled technicians and as a result people are beginning to feel threatened. This rise technology is also a major concern for a rise in inequality. This a multi-billion dollar industry that is on the rise, but not providing enough jobs to spread the wealth out.

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  24. This article serves to identify the various conditions within the market, which has inevitably led to an exponential growth of the .com and computer industry. In particular, this article credits technology for many things, such as the iPhone and improved productivity and workflow within the workplace. However, it also reveals the fact that these markets require very few jobs, humans, and positions to maintain. In turn, this movement towards automation as a way to increase net worth, which as a result, also contributes to financial inequality on a global scale.

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  25. I agree with what someone mentioned above. Technoligical advancments will have an effect on the job industry, however, I am not sure that this is entirely a bad thing. In order for our industries to functiion and keep up witht the times, we need machines and new technical ideas. It is unfortunate that people's jobs are lost in the process, but I believe it is necessary. Now, it is not really possible, or appropriate in my perspective, to replace all human jobs with machines, so I don't think we should worry about that too soon.

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  26. Adam Bloom-PaicopolosDecember 12, 2014 at 10:31 AM

    What I found most interesting in this article is how computers and technology are quickly replacing workers. This is nothing new to America, as already companies are shipping jobs overseas because they are much cheaper to pay for. Now, companies don't even have to worry about human rights violations they may commit overseas. They just plug in the technology and let it work 24/7 for just the price of installation. Businesses have always wanted to save money and that first meant moving jobs to countries without labor restrictions. Now, they are moving to the world of technology. Without big advances in making education more possible for those who need jobs the USA will face a dire situation of increasing unemployment as technology takes over.

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  27. The article spouts out what we have seen time and time again in movies now becoming reality. One movie that came to mind was Charlie and the Chocolate Factory because his father loses his job to a machine but in the end gets a job repairing those very same machines. I, Robot was another.

    The article is correct on many points. One being that jobs will be threatened by the increase usage of machinery and other technological advances. What will humans do then? What happens if they get machines to fix machines instead of people? I remember watching on the news about a robot that could preform surgery although it did have to be monitored. The article does mention that many doctors would be in danger of losing there jobs as well as people in other occupations. As much as technology can help, it can also cause damage.

    Also, I found it interesting that they mentioned Oculus VR which does have ties to UMD as I believe the creators were on campus a few months ago.

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  28. Technology has had a huge impact on us in the recent past, and it is fair to compare it to the industrialization in many ways. Just like in that time, policy makers need to act to control the use of technology and how it effects the jobs of the average american. The problem we are facing with technology often goes hand and hand with the problem we also face of rising inequality in our country. Steps forward in solving one, would also help in solving the problems placed in front of us by the other. Until law reflects the changes in technology our inequality will continue to grow and hurt our country.

    Michael Lerche

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  29. Although this author provides reasonable proposals for the government to implement in order to allow the digital revolution to have positive effects on society, it is unrealistic that these things be carried out by the government.

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  30. I always find it a little scary how computers are slowly but surely becoming able to think and reason like humans. While I do think think that computers are efficient replacements, there are certain boundaries that I don't believe should be crossed. I like the progression of technology and I feel that computers are really helpful tools, but once too many people begin to lose their jobs to them, it can take a toll on the economy.

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  31. Technological advances are disrupting our working system. The jobs are now replacing more employees through technology. The growth will impact many of the low class who are already at a disadvantage because of their risk of being in low skilled jobs are higher than most.

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  32. The rate at which technology is advancing shows how we as humans are ourselves adapting as technologically familiar beings. It will be hard to hold back it's progress, seeing as the possibilities that are unraveling are appearing to be endless. As new technological breakthroughs influence society we should be looking to it to appease the current system of big corporations throwing around their money. The emergence of a technology based society where everyone can benefit from an advanced infrastructure. - Maulford Smith

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  33. This article was really interesting because I'm often concerned about how much technology will come to inconvenience us in the end, and where limits would be set on its power. I simply wish that the article had suggested a different potential to solving it. The author argued that we should relax labor protections, for example allowing not-so-good workers to be fired rather than kept on for an amount of time. I'm concerned this would bring back the sketchier aspects of industrial labor, such as child labor and horrible working conditions.

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  34. I think the effects we face today with the "modern digital revolution" are very similar to those felt by workers during the industrialization in the 19th century in many ways. Although we obviously don't face the harshness of their poor working conditions, we see many workers who are being replaced by machines and computers and those who generate all the wealth are very few individuals while the majority at the bottom suffer trying to survive with stagnant wages while competing for their jobs with computers. I remember when self-checkout lanes were new at grocery stores and I couldn't help but think how many people lost their jobs to a computer and now these computers are everywhere replacing human labor. Of course we're not saying that technology is a negative thing. It's a wonderful invention but I think we just have to come up with a solution so that it doesn't negatively affect worker's wages or job creation.

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  35. With the growing population and depletion of jobs, we are in a very difficult position. At the same time, many believe that ability of what we are able to do with technology and the Internet is just a small fraction. I will assume that as technology becomes more advanced, there will a an adaptability in job types that will reflect the norm of technology, but we are in a transitory place. The very unfortunate reality of this situation is that due to the growing inequality, the disproportionality of equal access and lack of equal opportunity, many who are not adapting alongside the rapid advancement in technology are those whose skills will be obsolete in the future. This is the true problem.

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  36. The rate at which technology is advancing shows how we as humans are ourselves adapting as technologically familiar beings. It will be hard to hold back it's progress, seeing as the possibilities that are unraveling are appearing to be endless. As new technological breakthroughs influence society we should be looking to it to appease the current system of big corporations throwing around their money.

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  37. Technology will in the long run benefit humans as a whole, but just like this article points out, the transition will be hurtful. I think the technological advancements, like automated (robotic) production or 3D printing for example, will force us to rethink the capitalist system as it functions today. If fewer and fewer people are needed in the production then who will there be left to buy whatever is produced? People need employment in order to functions as consumers. However, now, because the market is globalized, the consumers can be outside in a different part of the world meaning that developing countries can have high unemployment but still maintain a functioning economy. The best solution I think is democracy and democratic control of the means of production (with the risk of sounding like a Marxist). I cannot se how this economic system can function in the long run as technological advancements completely change how we produce things and how we live our lives. - Visar Berisha

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  38. Any kind of change in society can have both helpful and harmful effects, and the rise in technology is no different. In time, we will be able to adapt to new technologies, but when they first come out, they will provide competition with the human beings who do the same jobs as the computers but require paying. Trying to stop progress is pointless, as people benefit from innovating and creating new technologies as well, and can in fact be harmful for society as a whole, as there may come a time when we need technology. The best we can do is adapt to it.

    - Brian Kang

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  39. This is an interesting perspective. I'm a firm supporter of implementing a living wage, so I thought it was interesting that the author stated that it wouldn't solve any problems. However, I disagree. I do believe that the minimum wage can not be expected to solve our probems on its own, but it is an important step. Even if the marketability of low-skilled workers is improved, there will always be someone on the bottom, and that person won't ever be able to survive off of what is now the federal minimum wage.
    I also believe that education is crucial, not only when we're talking about the economy and labor, but in every aspect of life. Providing education for our citizens is an area in which America is truly lacking.

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  40. This was an interesting read, although a little depressing. There are moments I wish we could go back to a simpler time, but I am also pro evolution (as long as it doesn't get out of hand). He talked about how the effects of technology has had both negative and positive impact on the world, and even though the positives are freaking great, knowing the negative impact it has on so many people makes it hard to appreciate how far we have come sometimes. I dont agree that wages being increased wouldn't help, that sounds crazy. When you talk to low income individuals 90% of the time they would love to learn or be educated in things like technology or other, but fail to have the funds to do so, or even believe that such a thing is possible for them, especially those who did not grow during the era of computers in the classroom for everyone. I still believe that we cant rely solely on computers, I think people should still be educated on the basics, it may sound pointless but the world will become lazy if left to just relying on technology. (I'm concerned mostly because what if there is a zombie apocalypse...) I do agree that we should redirect education towards the older generation, I cant remember but there are some jobs that make you retake classes over and over just so the workers can stay on top of their game. It would be nice if everyone could have an equal chance at exploring the new technological world that is forever moving upward.

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  41. Interesting article. So, I was born in the late 80’s and I find it interesting to watch how much technology has become a part of our lives. It was not mandatory when I was in school, but know it is mandatory. A student without a computer is doomed. Some schools cannot afford textbook, but now income/badly financed schools have to compete on school who essentially have endless funding. Due to the lack of equal schooling and opportunity, the future job market is going to suffer.

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  42. The author raises an interesting point in his article regarding the time that should be spent being educated, that people should continue to be educated for most if not all of their life rather than just high school and college. I can agree with this, especially because things are always changing, there are always new discoveries and social movements that change history. Being educated on things like the changing inequalities and the progress in the civil rights movement is important, and people may not get the adequate education in these fields if they stop actively getting educated on current events. This will also be helpful for earlier generations who want to get jobs in fields that are centered around more recent types of discoveries, and will overall increase the amount of hired people (ideally).

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  43. It’s interesting to see the rise of technology, which is undeniably good for humanity as a whole, being detrimental to some groups of people such as unskilled workers. While I understand that lives may be ruined as a result of this process, I believe the ends justify the means. I would prefer a world with laptops and wifi as well as a population of people who can’t find work over a world where everyone is equal, working as a farmer. I also approve of the writer’s suggestion for lifetime learning because the world is changing so fast right now that technology-related education becomes outdated in a few years.

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