“Most People Are Not Seeing Any Benefit From This Growth”

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While I don’t think the Singularity is upon us, mass automation could very well be. For all the good Weak AI can do for production, it will likely force us to reconsider politics, economics and even the meaning of being human.

It’s best, though, to be circumspect when considering the impact thus far of robotics. While it’s probably safe to assume machines have contributed to the middle-class decline in the U.S., there are other considerable factors, including tax codes. As far as the recent Case-Deaton findings about a spike in the death rate among white, middle-aged Americans, the wide availability of opioids has probably been as much the culprit as the decline of manufacturing. Tax codes and drug restrictions can be shifted, however, whereas automation is pointed in only one direction–and that’s up. If jobs of similar quantity and quality aren’t created to replace the vanished ones, something will have to give.

From Moshe Y. Vardi in the Guardian:

The US economy has been performing quite poorly for the bottom 90% of Americans for the past 40 years. Technology is driving productivity improvements, which grow the economy. But the rising tide is not lifting all boats, and most people are not seeing any benefit from this growth. While the US economy is still creating jobs, it is not creating enough of them. The labor force participation rate, which measures the active portion of the labor force, has been dropping since the late 1990s.

While manufacturing output is at an all-time high, manufacturing employment is today lower than it was in the later 1940s. Wages for private nonsupervisory employees have stagnated since the late 1960s, and the wages-to-GDP ratio has been declining since 1970. Long-term unemployment is trending upwards, and inequality has become a global discussion topic, following the publication of Thomas Piketty’s 2014 book Capital in the Twenty-First Century.

Most shockingly, economists Angus Deaton, winner of the 2015 Nobel memorial prize in economic science, and Anne Case found that mortality for white middle-aged Americans has been increasing over the past 25 years, due to an epidemic of suicides and afflictions stemming from substance abuse.

Is automation, driven by progress in technology, in general, and artificial intelligence and robotics, in particular, the main cause for the economic decline of working Americans?•

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