What Happens to a Society when Robots Replace Workers? | arduino | Scoop.it

The technologies of the past, by replacing human muscle, increased the value of human effort – and in the process drove rapid economic progress. Those of the future, by substituting for man’s senses and brain, will accelerate that process – but at the risk of creating millions of citizens who are simply unable to contribute economically, and with greater damage to an already declining middle class.


Estimates of general rates of technological progress are always imprecise, but it is fair to say that, in the past, progress came more slowly. Henry Adams, the historian, measured technological progress by the power generated from coal, and estimated that power output doubled every ten years between 1840 and 1900, a compounded rate of progress of about 7% per year. The reality was probably much less. For example, in 1848, the world record for rail speed reached60 miles per hour. A century later, commercial aircraft could carry passengers at speeds approaching 600 miles per hour, a rate of progress of only about 2% per year.


By contrast, progress today comes rapidly. Consider the numbers for information storage density in computer memory. Between 1960 and 2003, those densities increased by a factor of five million, at times progressing at a rate of 60% per year. At the same time, true to Moore’s Law, semiconductor technology has been progressing at a 40% rate for more than 50 years. These rates of progress are embedded in the creation of intelligent machines, from robots to automobiles to drones, that will soon dominate the global economy – and in the process drive down the value of human labor with astonishing speed.


This is why we will soon be looking at hordes of citizens of zero economic value. Figuring out how to deal with the impacts of this development will be the greatest challenge facing free market economies in this century. If you doubt the march of worker-replacing technology, look at Foxconn, the world’s largest contract manufacturer. It employs more than one million workers in China. In 2011, the company installed 10,000 robots, called Foxbots. Today, the company is installing them at a rate of 30,000 per year. Each robot costs about $20,000 and is used to perform routine jobs such as spraying, welding, and assembly. On June 26, 2013, Terry Gou, Foxconn’s CEO, told his annual meeting that “We have over one million workers. In the future we will add one million robotic workers.” This means, of course, that the company will avoid hiring those next million human workers.


Just imagine what a Foxbot will soon be able to do if Moore’s Law holds steady and we continue to see performance leaps of 40% per year. Baxter, a $22,000 robot that just got a software upgrade, is being produced in quantities of 500 per year. A few years from now, a much smarter Baxter produced in quantities of 10,000 might cost less than $5,000. At that price, even the lowest-paid workers in the least developed countries might not be able to compete.


Via Dr. Stefan Gruenwald, THE *OFFICIAL ANDREASCY*