Will automation lower workers' incomes?

27-08-2019

Will automation lower workers' incomes?


In recent years, factory automation has been on the rise, with an increasing number of production lines using industrial robots, citing digital software and information systems.Some commentators have expressed concern about the development of automation, saying it could threaten human jobs.These ideas could affect the development of automation and could lead to worsening policies, such as taxing or banning robots.

But history shows that while automation can temporarily displace some workers, it also improves social living standards by lowering costs, improving quality and allowing people to focus on higher-value work.

In a recent article in fortune magazine, two economists were quoted as saying that automation was the main cause of the decline in workers' share of income.It is said that in the past decade, most automation has taken over tasks that workers used to do, while relatively little automation has created new tasks, opening up new, more efficient jobs for humans.

There are two problems with the argument that automation reduces workers' incomes. First, there is plenty of economic evidence that investment in automation raises national incomes in the medium term.While automation can replace workers, the impact always leads to higher incomes and more social choices.

Will automation lower workers' incomes?

In fact, if there were too much automation, we would expect to see greater productivity growth and higher unemployment, which is not happening.

Second, this argument assumes that automation is to blame as labor's share of income declines, right?However, workers' net income does not represent total income.The increase in rental income is mainly due to local restrictions and other factors, rather than automation, as higher housing costs lead to lower net income.

In short, automation has always brought great benefits to society.Even during the recession, no one is suggesting that existing automation be abolished to create jobs.We should also embrace new technologies, rather than resist the continued progress of other forms of automation, and enrich future workers by encouraging automation.


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