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People told the inventor of the steam shovel that he would cause massive unemployment because "one steam shovel replaces dozens of men with conventional shovels
by dbecker 14y ago
People told the inventor of the steam shovel that he would cause massive unemployment because "one steam shovel replaces dozens of men with conventional shovels."
He replied "Or thousands of men with teaspoons."
I'm surprised how many people still think productivity will be the source of collapse... or how many people think low productivity is the answer to all economic woes.
That view point has always been wrong in the past, and I'm skeptical anything will change to make it right in the future.
- rayiner 14y agoThe difference is that at that time people weren't hitting up against natural resource limits. Productivity decreases the need for labor, and society reacts by producing more overall which keeps people busy. But that only works when there are no other constraints on growing overall production.
- dbecker 14y agoFrom an economic theory point of view, productivity increases generally increase the demand for labor. The suggestion that there is some level of "need" for labor suggests that there is a certain "need" for produced goods, and we happen to be at it right now. But we used to be below this level of output (which suggests our current level isn't a "need"), and consumption is still increasing... rather than leveling off.
- Cushman 14y agoWhat makes you so sure we're not witnessing it right now? During the recession, millions of people lost their jobs. If you look at the numbers, those companies are doing all right again, so why haven't those people all been hired back?
- kamaal 14y agoI think they have been hired back, not in the same places but elsewhere.
- locopati 14y agoGiven that unemployment is higher than when the economic downturn began - many have not been hired back. In the US, it's important to realize that the 'official' U3 unemployment rate does not paint the whole picture. The U6 rate considers those worker who have stopped looking for work because there's no work to be had and includes part-time workers. Furthermore, there's a large difference in unemployment between college educated workers and high-school educated workers. In addition, those that have been hired elsewhere are generally hired back for lower wages or less secure positions.
- drudru11 14y agoWhat would cause you to change your mind on this?
- dbecker 14y agoGreat question. I thought about it this afternoon, and I'm not sure what would cause me to change my mind about this... That seems like a red flag that I'm not being open minded enough about it. Anyway, thanks for the thought provoking question.