Lost Your Job? Blame the Robots, MIT Economist Says
The U.S. job market is in the doldrums and the American middle class is shrinking. But instead of blaming the President, illegal immigrants, or karmic forces, one MIT economist says we should blame robots. In a study conducted during the spring, economist David Autor found that manufacturing is still strong in the U.S., which is encouraging. What's not so encouraging, however, is the fact that robots are doing a lot of the automated work once given to human beings. Autor, in collaboration with David Dorn of the Center for Monetary and Financial Studies in Madrid, found that some jobs are more susceptible to robot takeover than others -- namely, those that involve what the authors call "routine" tasks. As a result, American wages have become increasingly polarized, since many routine jobs in banking, manufacturing and medicine can now be done by robots. The Economist points out that the robo-takeover could become even more problematic in the future, as more domestic bots may negate the need to hire unskilled or uneducated domestic workers.
This kind of technological takeover, of course, isn't anything new. The Industrial Revolution, for example, put a lot of artisans and weavers out of work, in the same way that the Internet has put a lot of journalists out of work. The difference, however, is that both the Industrial Revolution and the Internet created vast new industries, which still relied heavily on human capital. Robots, by comparison, threaten to replace human capital altogether, save for those select few who actually know how to make them. Ultimately, though, robots, like any other new technology, will put an even higher premium on education and skilled labor. Which, in the grand scheme of things, is actually a good thing for humanity.





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Comments
22
Subscribe to commentsdanOct 18th 2010 2:22PM
Being a doctor and a nurse can be done by robots? Not yet and it will be a while but until then people will do these. So if you're going to replace the work force then social systems that provide income and food for people displaced by robots and off shoring are only going to increase and the rich who got wealthy from it will have to pay more if this country is going to remain a democracy not a plutocracy.
DashOct 18th 2010 9:31PM
David Autor, the author of this study blaming robots for the decline in manufacturing jobs has obviously failed to consider the products sold by Walmart, Home Depot, Target, Lowe's, Kohl's, Best Buy et cetera. More than 80% of the products sold from those stores is manufactured overseas and retail accounts for 2/3 of our national GDP. I know automation because I'm an automation engineer. Unfortunately I've been a part of sending manufacturing off shore and rarely do to robots go off shore.
We should protect some aspect of all industries in order to protect jobs. For example, one product category that is very strong and still manufactured in the USA is pharmaceuticals. Just try buying vitamins from Canada -- you may very well be subject to felony charges.
LisaOct 18th 2010 2:29PM
robots are not the reason for the lose of jobs. It is because of out sourcing the jobs. Letting immigrants in the country and taking the jobs that our Kids would take and the uneducated adults would take. Don't blame tectnology for this blame the govement on letting the companies hire non american citizens!!!!! If all the people were non american citizens working who would pay taxes in this country?????
CRABBOOct 18th 2010 2:57PM
@(Unverified) hey dude you voted for them!! remember ther has never been a government that can stand against the will of the people. so when anyone who blames the government,instead you should blame yourselves and your neighbors!! same thing as innocent civilians,,what an oxymoron,,ther are no innocent civilians[refer back to 'will of the people'] come on wake up!!!
ifuseekamyOct 18th 2010 3:47PM
@(Unverified) LOL the kids? The adults??? Are you kidding? Kids these days don't want to work and many adults don't want to work hard. The retired group would have taken the jobs, but not this generation or the one just before it. Trust me, I have been an employer for 40 years.
dretisOct 19th 2010 6:31PM
@(Unverified)
wake up and smell the coffe dummy, technology has taken and continues to take jobs, not illegal aliens. i saw a report recently on tv that was talking about how a fast food chain is looking to minimze work force by having oders taken online and phone by 1 person for multiple shops. tech. will result in a an unemployment rate of 20% within a few years that will become the norm.
SMARTOct 18th 2010 2:47PM
Let me guess, you are a Native American as in Iroqois, Mohawk, Apache, Blackfoot? Didn't think so. Given that, YOU can only be a descedant of an immigrant. Daddy'O nothing has changed in over 250 years. Besides, immigrants do not TAKE jobs from anyone, most Americans (including Canada and Mexico which is part of North America), refuse to perform those jobs. Too much pride to work in McDonalds? It's a job. In conclusion, neither robots nor immigrants take jobs, we just rather out price ourselves, be unemployed and blame everyone around us for the dilemma. P.S. I'm 2nd generation "Italian American", educated and an electrical engineer. I'm more of threat to robots than they are to me. As for immigrants? We have a constitution equally applicable to everyone. Sorry to have busted your bubble.
fredfoooolOct 18th 2010 5:41PM
@(Unverified) So I guess there is no country known as the USA then. Maybe we should open the borders and let them all in!
Tony MoschettiOct 18th 2010 3:03PM
Hmm, how come I never see excuses like this when Republicans are running things! Yeah, it was robots that ran up a $1.3 trillion deficit, and scared employers with the prospect of higher taxes, and rising health care costs!
AJAKOct 18th 2010 3:03PM
Another idiot academician, from MIT no less......these so-called experts need to get a life, try showing a profit from a lemonade stand, lol, I'd bet you wouldn't last a week! Robots created jobs which cancelled out jobs that were replaced by robots. How about all the other factors which seem more significant?? Such as, outsourcing to foreign lands, illegal immigration, etc, and no less than any other, our politicians encouraging business dealings in foreign lands in the name of "Global Economy", the ruin of manufacturing as well as our agricultural base here in America!! There's TONS of educated derelicts who are settting policy and protocol that is absolutely pointless and WRONG!!
Earl BaileyOct 18th 2010 3:12PM
The company I worked for sent me to Fanuc Robotics out in Michigan. There I learned how to teach the robots their movements and operations. I was the only technician sent . The others were engineers! Guess what? The company closed and moved to Mexico anyway. My skills were worth zilch, having been unique to those robots and that particular application. Thus I became a parts picker at a local auto dealership at half the wages I'd been making!
lrobertsonbooksOct 18th 2010 3:19PM
Unless and until we open a virgin frontier ripe with resources and possibilities, America (and the world) will be struggling. Such a frontier exists. It's our solar system. stay tuned.
Stanley HarrisOct 18th 2010 4:05PM
My company works almost exclusivly with large corporations, and robots have nothing to do with why so many people are getting laid off. The major culprit is simple greed. Using the economy as an excuse, large companys, even though they are still making a profit, are laying off people and requiring those still employed to do the work that used to take 2 or 3 people. The rich of this country are the true culprits, as they are increasing their own fortunes by taking advantage of the defenseless middle class workers who can't buy politicians. The Republicans are getting what they want by protecting the rich, even though there is undeniable evidence that this so called "trickle down economics" is responsible for the biggest problems in this country. If you need somone to blame for the loss of your job, you can thank Ronald Reagan, George Bush, and the new crop of "real robots" such as Sarah Palin and Christine O''Donnell.
silvasm516Oct 18th 2010 5:39PM
@(Unverified) Couldn't have said it better !!
fredfoooolOct 18th 2010 5:59PM
@(Unverified) Yep. The higher taxes go. The more it motivates rich people to hire you. Works every time! Please somebody take my money so I can create another job!
ACPorterattyOct 18th 2010 5:31PM
The trend for robotics has been going on for many years. If it were the cause of the rise in unemployment, then the first six years of this decade would not have seen the high employment and economic growth that we experienced.
The reason for high unemployment is a matter of basic Keynsian Economics and the actions of the Democrat Party in control of Congress. Most jobs in this country are through small businesses. The Congress under Nancy Pelosi and Harry Reid mandated a 41% in the minimum wage over a period of 2 years and one day. This then caused small businesses to close, lay off workers, cut hours, cut back on inventory purchases, and/or stop hiring new employees because they simply could not afford to absorb a 41% increase in costs. Blaming Wall Street, banks, and robotics is nothing but demagoguery to distract people from the truth. We will continue to have high unemployment for several more years until small businesses can save up enough money to be able to afford to pay more employees the higher wages imposed by Congress, barring any other action which reduces the effective cost of hiring new workers. There is no good reason for businesses to borrow money to pay wages they can't afford. Why should anyone go into debt for the benefit of someone else.
fredfoooolOct 18th 2010 5:45PM
@(Unverified) Those darn 7 dollar an hour wages are breaking our company! You know I could buy a Ferrari with that money!
papaOct 18th 2010 5:31PM
this is true:i work for a company that just installed a $60,000.000 machine all geared to get rid of people who are tired of getting ripped off by not getting paid for over time. i would mention their name but dont want to get in trouble.search and see the food industry.thank God the machine has troubles been programmed at least for now.
RobertRobOct 18th 2010 5:39PM
Just look at every thing Made In China,Mexico,ETC ETC ETC!!
I would love the Presiden grow a pair of balls & finally come out & say the truth.
I workd 4 Advanced Auto Parts & they R only intrested in Profit.
Yhey want both side They want Cheep labor to make all there Parts & on the other hand want us Americans 2 buy threr parts at any cost.
Pretty the bottom line is going to cats more & more Americans there jobs & who is going to buy then.
Wallmart,Advanced Auto Parts, Auto Zone ,Napa,Sears, & every one else needs to Buy American Stuff made here to Resell it cheeper & Quit being so Blanking greedy.
The government has to back American Steel Mills first.
Steel Workers must accept less money even retired Machinest would lend a helping hand if they know it would help our Country.
fredfoooolOct 18th 2010 5:48PM
@(Unverified) Are you going to insist as well that your bank CEO take a 2 million dollar a year pay cut so you can see a higher than 1 percent yield every year? No?...But the steelworkers need to take a pay cut?