The media are full of stories about robots and automation destroying the jobs of the past and leaving us jobless in the future; call it the coming Robot Apocalypse. We are also told that automation and technology are responsible for the poor wage growth and inequality bedeviling the American working class in recent decades, and that looming automation will only accelerate and ratchet up these problems. Recent research by economists Daron Acemoglu of MIT and Pascual Restrepo of Boston University is but the latest fuel for the automation media narrative (Acemoglu and Restrepo 2017a). What is rem
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The media are full of stories about robots and automation destroying the jobs of the past and leaving us jobless in the future; call it the coming Robot Apocalypse. We are also told that automation and technology are responsible for the poor wage growth and inequality bedeviling the American working class in recent decades, and that looming automation will only accelerate and ratchet up these problems. Recent research by economists Daron Acemoglu of MIT and Pascual Restrepo of Boston University is but the latest fuel for the automation media narrative (Acemoglu and Restrepo 2017a). What is remarkable about this media narrative is that there is a strong desire to believe it despite so little evidence to support these claims. There clearly are serious problems in the labor market that have suppressed job and wage growth for far too long; but these problems have their roots in intentional policy decisions regarding globalization, collective bargaining, labor standards, and unemployment levels, not technology.
This report highlights the paucity of the evidence behind the alleged robot apocalypse, particularly as mischaracterized in the media coverage of the 2017 Acemoglu and Restrepo (A&R) report. Yes, automation has led to job displacements in particular occupations and industries in the past, but there is no basis for claiming that automation has led - or will lead - to increased joblessness, unemployment, or wage stagnation overall. We argue that the current excessive media attention to robots and automation destroying the jobs of the past and leaving us jobless in the future is a distraction from the main issues that need to be addressed: the poor wage growth and inequality caused by policies that have shifted economic power away from low- and moderate-wage workers. It is also the case that, as Atkinson and Wu (2017) argue, our productivity growth is too low, not too high. Rather than debating possible problems that are more than a decade way, policymakers need to focus on addressing the decades-long crisis of wage stagnation by creating good jobs and supporting wage growth. And as it turns out, policies to expand good jobs and increase wages are the same measures needed to ensure that workers potentially displaced by automation have good jobs to transition to. For these workers, the education and training touted as solutions in the mainstream robot narrative will be inadequate, just as they were not adequate to help displaced manufacturing workers over the last few decades.
Excerpt from publication.
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