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It's incorrect to say "less need for labor" because labor in general is the most scarce resource (it's easy to prove: we have unused natural resources and capit

It's incorrect to say "less need for labor" because labor in general is the most scarce resource (it's easy to prove: we have unused natural resources and capital always requires labor to make them work and maintain them). This is exactly why everybody tries to build capital which makes labor more efficient. It is clearly more efficient for a man to control 10 cars with a computer instead of the one with his bare hands. What other 9 persons would do? Either control more cars (if there rises a demand for them) or shift to remaining, more important processes where the labor is still less efficient (and thus costs more), or any combination of these. Think of it like "we solved the problem with cars, lets now move on the next task". And as you know, existing capital and technology lets people learn and adapt more and more efficiently. So it's not "progressing economy needs less labor", but rather "progressing economy makes labor more efficient by solving some productivity problems and shifting labor where unsolved, more urgent problems remain."

rkaplan 15y ago
True, but those unsolved, more urgent problems often require more educated labor. Many taxi drivers who find themselves out of a job likely don't have the skills necessary to quickly reintegrate into the labor market solving the tougher problems you're talking about. As machines continue to replace humans in tasks that can be automated, fewer unskilled jobs will be left for less-educated segments of the labor force. As technology automates new processes that previously required human labor, the educational barrier to entry becomes higher for the jobs that are left, because the easier productivity problems have been solved.
- UK-AL 15y ago
  Yes indeed. This is why I'm so interested in the educational revolution that is currently happening. Education is important in this situation. The good thing is that the higher end jobs tend to be creative(Research), and in near infinite supply if you can get money flowing into them. You can never have enough inventions or new technologies.

rkaplan 15y ago

True, but those unsolved, more urgent problems often require more educated labor. Many taxi drivers who find themselves out of a job likely don't have the skills necessary to quickly reintegrate into the labor market solving the tougher problems you're talking about. As machines continue to replace humans in tasks that can be automated, fewer unskilled jobs will be left for less-educated segments of the labor force. As technology automates new processes that previously required human labor, the educational barrier to entry becomes higher for the jobs that are left, because the easier productivity problems have been solved.

UK-AL 15y ago
Yes indeed. This is why I'm so interested in the educational revolution that is currently happening. Education is important in this situation. The good thing is that the higher end jobs tend to be creative(Research), and in near infinite supply if you can get money flowing into them. You can never have enough inventions or new technologies.