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The average worker is not getting more productive, because they are being homogenized to great corporate benefit. Workers are homogenized when software and har
by Nevermark 5y ago
The average worker is not getting more productive, because they are being homogenized to great corporate benefit.
Workers are homogenized when software and hardware automation replace some of their skills, even though the job still exists.
1. Reduced utilization of worker skills, reduces worker's on the job value.
2. Reduced utilization of worker skills, reduces worker replacement costs.
3. Reduced need for training, also reduces worker replacement costs.
4. Reduced need for training, decreases on-the-job value gains for workers.
5. Homogenized jobs are easier to offshore to areas with lower wage expectations.
6. Homogenized workers allow for greater manager-to-worker ratios, either reducing the number of management jobs or increasing the number of homogenized jobs.
More of these jobs are being created very quickly since:
1. They save companies in wages.
2. They save companies in time.
3. They save companies in management complexity.
4. They save on resources for dignity and comfort.
5. They allow for faster scaling.
6. Entering new markets that require many workers is easier and more profitable where job homogenization is possible.
Think of automation from the employer's view:
1. Automation by software.
2. Automation by hardware.
3. Automation by worker homogenization.
Workers (for many types of low-level high-count jobs) and capital goods are "better" when they are standardized in quantity.
The point isn't to make them more productive, but to save money, which may go to profits, but it might also just go to reducing product and service prices since homogenization is not a difficult differentiator to copy.
So no "net gain" in GDP dollar terms, just reduced prices in line with reduced wages. But with dollars shifting away from companies not doing this yet, to companies that are.