Monday, March 11, 2019

How Automation will Transform American Jobs

I watched an interview with Andrew Yang on CBS last weekend and he makes some good points concerning universal income, automation, and artificial intelligence.



Tesla is already claiming to have self driving cars and there are self driving taxis being used in Las Vegas and other cities around the world.  I believe the big market for this technology will be in the trucking industry.  Andrew Yang explores the consequences of this.  Let's say that adding self driving (SD) to  a car double the cost of the car.  Adding SD to a semi-truck will cost about the same but since a semi costs much more than a car it will be a much smaller fraction of the total cost.

For car SD is mostly just a curiosity that some people may want, for big rig transportation self driving has many advantages.  The trucks can drive 24 seven with taking a break.  The trucks will choose the most efficient route and be less prone to accidents.  Automated scheduling will ensure the products reach the correct destination just in time.

I see SD trucks will initially deliver products to large distribution centers and local human drivers will transfer the products to their final destinations, but eventually the self driving vehicles will be able to do it all better and cheaper than the human drivers.  It will  probably start out as a new start up trucking company that has no drivers.  Then it will spread to all of the other companies in order for them to compete.

Most of the union power of the trucking industry has been dismantled so the truckers won't really be able to do anything about it.

What are the social ramifications?  Well trucking is currently one of the more lucrative jobs for young to middle aged moderately skilled workers.  There are a lot of truck drivers who rely on this income.  Within the next ten years all of those jobs could be gone or on their way out.

You are going to have a large population of angry unemployed truckers.  I don't think that is something you will want to see.