Humans will always figure out a way to combine the resources they have to generate additional value. It doesn't matter if these resources are wood, sand, oil, water, steel or software.
In the example given above, the owner of the business buying more automation is actually an explicit example of an enterpreneur REINVESTING. A manual job is being traded by a specialized job. Demand for specialized jobs is being created. I fail to understand where on earth that would be a bad thing.
When resources are reallocated, some people lose their jobs on the way, that's just the way life is. A responsible individual doesn't take a job for granted and saves so that he or she can go through bad times.
By visiting a third world country it is very easy to observe the lack of automation employed by its society. Yet, quality of life is ridiculous. Can you explain why?
1. Automation is lowering amount of available jobs at lower skill levels.
2. New markets created by automation no longer manage to suck lower skilled level workers back in before those markets themselves get automated.
3. Government can't allow for high unemployment as it causes civil unrest due to jobs being most common way people get money to fulfill their basic needs. Government then makes up some jobs and finds pathological ways to provide food and shelter for some people. Lots of new government entities were created or strengthened over recent years. Prison population is as always growing.
My conclusion:
We need to deal better, more honestly with inflow of unemployed that will not subside. 50% (or higher) unemployment is perfectly fine and eventual inevitability. But we shouldn't lock half of these people up and pay some of the rest to guard them and the rest of the rest to do some fake paper-pushing or citizen groping government jobs. I think basic income guarantee is good solution especially implemented together with sponsored, high quality education that can help some unemployed (those who can and are able) to make the jump into future highly skilled workforce that will architect, manufacture and implement further automation.
1. It doesn't really - it changes them. Changing from horsepower to cars eliminated the jobs of people that hauled horse manure - but created myriad of jobs for caring for, fixing, maintaining, selling and otherwise dealing with cars. The mistake here is that people see where jobs disappear, but don't see where they appear since they don't know where exactly to look.
I don't really see how car can be seen as exemplary labor saving invention. Steam engine, electric engine, radio communication, computer, internet sure, but car?
It's just a technology that allows you to build artificial horse that drinks stuff you can mine from underground and shits in the air you breathe instead of on the street you walk on. It surely saves some labor, but it turns so much on its head by increasing mobility and allowing for actions that were previously impossible that this labor saving part is pretty minor and is easily offset by paradigm change that car brought by.
In the example given above, the owner of the business buying more automation is actually an explicit example of an enterpreneur REINVESTING. A manual job is being traded by a specialized job. Demand for specialized jobs is being created. I fail to understand where on earth that would be a bad thing.
When resources are reallocated, some people lose their jobs on the way, that's just the way life is. A responsible individual doesn't take a job for granted and saves so that he or she can go through bad times.
By visiting a third world country it is very easy to observe the lack of automation employed by its society. Yet, quality of life is ridiculous. Can you explain why?