Automation and

Employment

By Dennis Ricks

Pros and Cons of Automation

• Pros• Saves production

costs• Helps US be more

competitive• The primary industry

of Silicon Valley

• Cons• Replaces human jobs• Can make people feel

worthless

What Jobs Will Robots Take?

Some researchers predict that up to 45% of all American jobs will be replaced by software or robots in the next 20 years…

12 Jobs Being Automated Now

• Factory worker• Bank teller• Cashier• Receptionist• Mail carrier• Secretary

• Farm worker• Warehouse worker• Travel agent• Newspaper reporter• Data entry associate• Legal researcher

12 Jobs at Risk of Automation

• Garbage collector• Truck driver• Taxi driver• Pizza deliverer• Cook• Telemarketer

• Soldier• Fighter pilot• Commercial pilot• Astronaut• Internal med. doctors• Tech support

Jobs Safe From Automation…(for now)

• K-9 educator• Day & senior care• Personal trainer• Writer, Artist• Masseuse, entertainer• Plumber, electrician• Scientist, futurist

• Automation manager• Software engineer• Most health care work• Lawyer, Politician• Entrepreneur • Financier, Investor• Professional athlete

US Unemployment Rate

The Unprecedented Rise of Long-Term Unemployment

Productivity vs. Median Family Income Growth

US Income Share of Top 1%

http://en.wikipedia.org/wiki/File:2008_Top1percentUSA.png

What the Gov’t Should Do Now

• Permanently end all payroll taxes on 1st $25k• Raise minimum wage by 15% with the co. savings• Provide health insurance to reduce payroll burden• Support the Work Opportunity Tax Credit• Boost SBA loan and investment programs• Boost infrastructure spending (roads, bridges, etc.)• Reorient education towards greater adaptibility

How to Pay for That

• Boost the capital gains tax• Make income tax more progressive• Add a national sales tax on non-essentials• Reduce inheritance tax exclusions• Eliminate tax credits for rich oil companies• Tax non-US corporations with sales in US

• Your thoughts?