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Understanding Technological Unemployment - Coggle Diagram
Understanding Technological Unemployment
Introduction
Technological change
reduces the need
for labor
many workers lose their jobs
businesses are automating workplaces
with artificial intelligence and robotics to create:
AI mortgage analysis,
AI paralegals
as driverless cargo trucks,
A catastrophe such as the Covid-19 pandemic can accelerate the automation process
Consequences
Lack of minimum living standards
crowd of workers left out of the economic production
Workforce outdated skills
new jobs created, will requiere different skills
to reintegrate succesfully iunto the employment market
Increased inequality
May increase new forms of inequalities
Skill-based divide
higher wage inequality between
untrained and highly qualified employees
Lack of acces to digital devices and the internet
More free time/boredom
risk of people being bored, demotivated and undecided
we could use free time to develop better education and health care
Fiscal risk
Decreases the tax revenues
Less demand/consumption
many workers lose their jobs at the same time
the effective demand for new products will shrink
Solutions to causes
Augmenting workers instead of replacing them
workers will need to have higher skills, mainly digital skills
Share work
reduce the number of hours in the working week
some relief to the social safety net
same employee benefits when reducing the working hours
Nostalgy or technology aversion
motivate the revival of certain occupations, such as handcaft
new business ideas to create a market for human labor
creation of new economic sectors
to replace the ones in which little or no labor is needed
Technological change sometimes renovates jobs instead of eliminating them
inequality between countries could be mitigated
international tax cooperation to address technological unemployment
Causes
Outdated international tax systems
problems related to the digitalized world
Inequalities between economically developing and developed countries
Technological oligopoly
technology development will provoke worldwide labor displacement
Skills mismatch
digital technologies are changing faster than organizations and worker's skills can keep pace
Fast technological change
advance in technology development and automation will substially:
reduce future labor demand
changing jobs
Inadequate tax systems
Invert duch stimulus by charging more for automated production
Solutions to consequences
basic income guarantees
charitable donations
production of ones’ own goods
UBI.
providing a minimum living standard for its citizens
charitable donations
production of goods by the people who need them
create their own machines
Changing the social safety net
upfront aid to be used for education costs