• Welcome to Tamil Brahmins forums.

    You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our Free Brahmin Community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

    If you have any problems with the registration process or your account login, please contact contact us.

Automation Is the Greatest Threat to the American Worker, Not Outsourcing

Not open for further replies.
Why only US! Automation will banish jobs in India & China too!!

[h=1]Automation Is the Greatest Threat to the American Worker, Not Outsourcing[/h]
Author Eleazer Corpuz
Editor Kristin Houser
December 8, 2016
[h=5]In Brief[/h]
  • While president-elect Donald Trump's Carrier deal will keep some jobs in Indiana, United Technologies' plan to invest $16 million to automate the plant will ultimately lead to job loss.
  • Job loss in inevitable in the age of automation, so we must find ways to mitigate the negative impact on the human labor force.

[h=2]Unintended Consequences[/h]During his campaign, president-elect Donald Trump made a promise to keep jobs in Indiana. Now, he’s making good on that promise by brokering a deal with Carrier that ensures that the manufacturer would keep 1,000 jobs across two locations in Indiana. That victory might be short-lived, however, as the deal could create unintended consequences for the company’s employees in the future.
Carrier initially intended to relocate its plant to Mexico where costs would be lowered due to the country’s cheaper and more dedicated labor force. “Wages are obviously significantly lower. About 80% lower on average. But absenteeism runs about 1%. Turnover runs about 2%,” said Greg Hayes, the CEO of United Technologies (the parent company of Carrier), during an interview with CNBC’s “Mad Money.” The move would have resulted in the loss of about 1,400 jobs in Indiana.
As part of the deal brokered by the Trump administration, 850 jobs will remain in Indiana and United Technologies will be awarded $7 million in tax incentives. In the interview with “Mad Money,” Hayes revealed that United Technologies will be making a $16 million investment in the plant, but it’s what the CEO said is the ultimate goal of that investment that’s key: “…to automate to drive the cost down so that we can continue to be competitive.”
Credit: Carrier[h=2]The Sting of Automation[/h]As Hayes elaborates in the interview, automating won’t be as cheap as moving to Mexico would be, but the result for many of the state’s workers will eventually be the same: “we will make that plant competitive just because we’ll make the capital investments there…But what that ultimately means is there will be fewer jobs.”
While outsourcing used to be the most financially sensible choice for companies operating in countries with no labor cost advantage, that role has been taken over by automation. Companies like Nike have closed some of their factories in China in favor of automation, and they subsequently saw their profits rise (for Nike, by 16 percent during its 2013 fiscal year). This doesn’t bode well for low-skilled workers who depend on these jobs to live.
Industry experts and scientists have been warning us about the bleak outcome for the human labor force in the age of automation. Perhaps now is the time to stop focusing on the positive effects of automation and start figuring out how to mitigate the negative ones.

Yes, that stint only fools few gullible,
But that is what sells, sadly.
With driver less cars and buses so many more people are going to be displaced.
We will have massive layoff and unemployable labor force.
Technology creates and destroys jobs: Martin Ford Tuesday, 6 Dec 2016 | 2:36 PM ET | 03:02

Amazon's new concept convenience store doesn't just save money, it saves shoppers' time. That, however, is part of what makes the rise of the robots unstoppable, one expert said.
At a time when a growing number of observers have lamented the potential impact of growing automation on flesh and bone workers, the retail giant introduced something that may be a game-changer. On Monday, Amazon announced a new Seattle location, Amazon Go, that has no registers.
Instead, shoppers scan into the store with their free Amazon Go app, shop as normal, and leave the store with the items billed to their Amazon.com account.

"With Amazon, it's not just about reducing labor costs at all — they've come up with something disruptive," Martin Ford told CNBC's "Power Lunch" this week.
"I don't think there is anyone that doesn't hate standing in line at a retail store, and they've figured out a way to basically get rid of those lines," he said. "So this is something that is not just about eliminating jobs, it's going to create enormous advantages for consumers. So it's an inevitable process."

It's unclear exactly how ambitious Amazon's expansion plans are for Amazon Go, but it faced immediate backlash as "the end of jobs."
"I don't think we can stop it," said Ford, the author of "Rise of the Robots: Technology and the Threat of a Jobless Future." "It's a part of capitalism, that there's going to be this continuous drive for more efficiency."

Ford pointed out that retail salespersons and cashiers were among the occupations with highest employment in the U.S., according to Bureau of Labor statistics data from earlier this year.

To be sure, self-checkout has been around for years, even as cashiers and retail salespersons have seen high employment rates, Roger McNamee, co-founder of technology investment firm Elevation Partners, pointed out to CNBC on Monday. These workers are often a "positive part" of the retail experience, McNamee added.
But the technology that powers Amazon Go, like the computer vision and artificial intelligence used by self-driving cars, is different that what's come before it, said Ford.
"It's true that technology always creates and destroys jobs, and historically, of course, it's created more jobs," Ford said.

"But I do think we're getting to the point — with the advent of real artificial intelligence, machine learning,and so forth — [where] these technologies are beginning to think. They're taking on cognitive capability. That's different. It's going to have a much more dramatic impact," he added.

Not open for further replies.

Latest ads

Thank you for visiting TamilBrahmins.com

You seem to have an Ad Blocker on.

We depend on advertising to keep our content free for you. Please consider whitelisting us in your ad blocker so that we can continue to provide the content you have come here to enjoy.

Alternatively, consider upgrading your account to enjoy an ad-free experience along with numerous other benefits. To upgrade your account, please visit the account upgrades page

You can also donate financially if you can. Please Click Here on how you can do that.

I've Disabled AdBlock    No Thanks