Whether to adopt automation or not
The automation going on in industries has sparked off a debate in the United States of America. Whether to adopt automation or not remains the big question on policymakers’ minds. In this paper, I will discuss the application of robotics in both manufacturing and service industries and impacts. The uncertainty of human labor and the solutions to these looming problems will also be addressed. I will also answer the question of whether to apply automation.
The video Human Need Not Apply carefully analyses the pros and cons of automation. The author of the video precisely indicates that automation is not an option but a reality. The narrator shows clearly that many sectors in the United States have already shifted towards automation. Some of these sectors include car manufacturing industries, education, and health services. Initially, automation was used extensively at the production level. However, this time, automatic cars that can self-drive are being produced in large quantities. Therefore this marks a milestone in this industry.
The application of robots in the American economy has led to the loss of employment. Almost in every sector, there is a robot, and these robots cost half less compared to human labor. Therefore, industry employers in the United States prefer shifting towards this expensive venture with the aim of future cuts to costs. According to Qureshi et al. (2014), the application of robots in industries has led to stress among employees. Qureshi et al. (2014), adds that this has also contributed to low productivity in the workplace, as a result of insecure jobs. The authors further aggravate that such uncertainties have also caused health complications among workers. The complications include stress, high blood pressure, and diabetes.
Larson et al. (2020), champions for the adoption of autonomous vehicles. They cite reasons such as reduced shuttle costs, as well as lowering housing costs as the suburban areas would be easily accessible. However, there is an overlooked challenge concerning self-driven cars. Creating issues around legislation and insurance. Currently, the law does not cater to the non-existent driver. Therefore a question arises in case of accidents someone to hold responsible misses (Larson et al. 2020).
Robots have been manufactured intelligently and now compete with humans for jobs. Currently, every sector in the economy is affected as most jobs can be done by robots. Some robots perform tasks in retail businesses. This kind of robot has laid off thousands of employees who could have worked in the retail sections of the country’s leading retailers. Historically,man never anticipated technological revolution, when it happened, some were caught unaware and could not adopt. Morris et al. 2000) support this statement after they conducted a study on the reactions of employees on the adoption of new technologies. The famous phrase “better technology makes better jobs for horses” is ironic simply because horses were rendered unproductive with the manufacturing of the car.
Mechanization could also render human beings unproductive. The cost of having a machine is less than the price of having a worker performing the same task. Llale et al. (2019) analyze the advantages of having robots in industry. Reasons championed for the adoption of machines are the protection of human beings working in risky sectors, the increased rate of productivity of devices, and the ability to do cumbersome and tedious work. Unfortunately, machine lobbyists forget some of the advantages of having human beings at the helm of tasks is the ability of man to make context initiated decisions.
The decision not to adopt is nothing other than wishful thinking. Technology is getting smarter and smarter, perhaps like the horse, and man would be left redundant by his creation. Entrepreneurs desire low-cost production with high returns. However, this cannot realize with man at the helm of labor. Economists predict that by 2025 in the United States, almost 3.6million American automation would eradicate jobs. These figures are worrying, and governments have to generate quick time solutions. It is tough to stay in a country where almost half the population do not have sources livelihoods. Agreeably there are sets of propositions that governments already have to help cushion this coming storm. One mechanism put in place in America is the introduction of the $15 minimum wage. Minimum wage is an excellent initiative as it would distribute income between the high earners and the low-income earners.
Furthermore, this would help increase the level of employment. Economists are apprehensive about this approach as it would lead to the automation of low skilled workers (Chu et al. 2020). An article was written by Gregory Ferenstein for Forbes analyses the existential threat the minimum wage has on small skilled jobs. An increase in minimum wage results in a decrease in the share of automatable employment, hence this leads to unemployment for low skilled workers.
Fast food industries like Wendy’s have resorted to automation to counter the looming chances of an increase in the minimum wage. They have resorted to self-serve food stalls and robots, drastically reducing the number of cashiers in their outlets. Wendy’s plan to install touch screen ordering machines in hundreds of their outlets. As a measure to protect themselves from the increase in the minimum wage.
The introduction of a basic income counters the effect of automation. The question to introduce minimum wage is still debatably in the United States. However, Hawaii has set precedence by becoming the first state granting the creation of a basic income. Hawaii’s state legislature passed unanimously a bill that acknowledges everyone eligible for a minimum wage. Governments project that automation would lead to massive retrenchments. Therefore proposals like basic income and minimum wage are bumpers to this looming catastrophe.
References
Qureshi, M. O., & Syed, R. S. (2014). The impact of robotics on employment and motivation of employees in the service sector, with particular reference to health care. Safety and health at work, 5(4), 198-202.
Morris, M. G., & Venkatesh, V. (2000). Age differences in technology adoption decisions: Implications for a changing workforce. Personnel Psychology, 53(2), 375-403.
Llale, J., Setati, M., Mavunda, S., Ndlovu, T., Root, D., & Wembe, P. (2019, July). A Review of the Advantages and Disadvantages of the Use of Automation and Robotics in the Construction Industry. In Construction Industry Development Board Postgraduate Research Conference (pp. 197-204). Springer, Cham.
Chu, A. C., Cozzi, G., Fan, H., Furukawa, Y., & Liao, C. H. (2020). How minimum wages affect automation and innovation in a Schumpeterian economy.
Larson, W., & Zhao, W. (2020). Self-driving cars and the city: Effects on sprawl, energy consumption, and housing affordability. Regional Science and Urban Economics, 81, 103484.