May 29, 2018
To the Editor:
I agree with Mr. Steven’s letter to the Editor of May 25, 2018, where he states that “.. despite three
decades of economic growth, middle-class incomes have risen only slightly.” I would like to add
two more reasons why this has occurred: (1) outsourcing production to foreign countries, especially
China, and (2) automation, especially robotics. Both have the effect of reducing costs and increasing
profits for manufacturers. Both have placed downward pressure on middle-class employment and compensation.
decades of economic growth, middle-class incomes have risen only slightly.” I would like to add
two more reasons why this has occurred: (1) outsourcing production to foreign countries, especially
China, and (2) automation, especially robotics. Both have the effect of reducing costs and increasing
profits for manufacturers. Both have placed downward pressure on middle-class employment and compensation.
Automation is increasing more rapidly due to progress in artificial intelligence (AI). This means that machines have the potential to replace workers at ALL levels of employment. Productivity will increase immensely as robots work 24/7, are not compensated, and have no fringe benefits.
This trend has the potential to eliminate most jobs. Positions involving technology and social
assistance will increase. The ultimate result will be massive unemployment. However, people will
need income to purchase goods and services. The government must tax companies according
to their rise in productivity due to automation and job loss. The result will be a Universal Basic Income
(UBI) provided to all the unemployed. Also, the government must sponsor social activities for an idle,
restless population.
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