Published by Los Tiempos Newspaper, April 2016 Edition
We will propose the following paradox: "While life is easier to human beings, less opportunity has people to work" This is valid, mostly in urban areas of developed countries.
It seems that this axiom is true, since history shows us the time that inventions have brought us welfare but have left us without work. However, there is some rant, as we see below.
Certain inventions generated many unemployed in one area but created jobs in others. One of the prime examples is the ancient invention of the wheel, which eliminated the messengers and guides of long journeys but revolutionized the world by creating countless jobs in pottery, transport and industrial production. However, two extraordinary civilizations such as the Incas and Aztecs were developing successfully without the use of the wheel.
Another example is the invention of money papers (Bills). He eliminated those difficult trade-offs exchanged heavy goods and large amounts of gold and silver manipulated. Instead came the banks, who came to revolutionize the business world.
Recently launched, a recycling paper machine for corporate and even personal use was announced. It is interesting to observe the process of three minutes, by which the used paper is transformed in new one in color and texture chosen by the user. This technological breakthrough will undoubtedly be extended soon to the recycling of other plastic products larger.
This extraordinary system will create an inventory of permanent paper. Excellent !!! But,
What will happen to the many paper manufacturing plants? And recycling plants? How many jobs will be lost? All are valid questions, even questioning the very use of paper, which is in sharp decline.
Of course, not all businesses will be lost, some achieve evolve. For example, everyone remember beepers but nobody uses them. They simply were replaced by cell phones. In this case, most of the vending business beepers, became cellular stores. Fixed telephony companies evolved into mobile technology, but still retain a segment of its market mainly for corporate solutions.
Some professions also managed to evolve. This is the case of journalism: The origin was the flat press or printed paper, then followed the broadcast journalism, then television and now digital. All very well, evolving with each invention, only that now the news "fly" but there are fewer reporters and workshop personnel in the publishing groups. Even the removal of the workshops is contemplated when the press edition will be completely online.
Really, technological advances, especially in the urban centers of developed countries are creating massive unemployment, as we can see in different areas.
We know the heavy losses suffered by banks, because of the laws that regulate them and prevent them from granting more loans. We understand the cost involved in handling thousands of branches and employees. But at the same time we see the thousands of ATMs that have left many workers unemployed.
We appreciate the speed in sending online correspondence and the speed and accuracy of our digital payments. But we realize that thousands of postmen have lost their jobs nationwide.
We were amazed of the variety of transactions that we can do in the stock market through our computer. But we also know of thousands of previous workers in brokerage houses, which were laid off.
We are pleased to see the agility that now has traffic as it passes through a toll. But we also miss those thousands of employees who greeted us with a smile and who we consulted them addresses when we were lost and we did not have maps on hand.
Instead, when the technology reaches the most impoverished areas of the world, not only it becomes a factor of physical expanding life expectancy, but also effectively creates jobs.
When an invented machine capable of converting into drinking water human excrement, is used in remote regions of Southeast Asia or Northwest Africa, indirectly creates jobs as the time saved in finding the vital liquid, may be invested in working.
Also, when solar energy reaches these humble homes at bargain costs which can be paid with cell phone use, a number of benefits such as refrigeration and power are obtained, all of which leads to greater job opportunities.
And of course, fusions that means growing big business in few hands, further reduces the possibility of employment. For example, the valuable company AT & T, exclusive provider of excellent telephone services yesterday, now evolved into the cellular market and acquired digital television platform, search engine and digital satellite television.
Of course, it is not easy to provide efficient services to more than 300 million customers. It seems logical to hire customer service staff in other countries, since there are too workers required to handle calls of many human beings with problems of different kinds.
We know that hiring an army of employees in the US representing a decrease of annual net profit and thus a lower payment to shareholders in dividends from shares.
But, how far can grow a huge company without affecting the national economy? Because if they take the risk of an aggressive expansion, they also must responsible assume the implicit transaction costs.
In other words, a way to increase employment in the US it is to maintain customer service centers in the country and not outside of it. And certainly, that is one way to combat those displaced by technological advances.
BENJAMIN F. DeYURRE
Economist and Journalist
@DeYURRE
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