You just beautifully summarized the "Lump of Work fallacy" https://en.wikipedia.org/wiki/Lump_of_labour_fallacy
Yes, technology changes/improvements causes transitions in the job market but as it turns out, human needs are endless and new jobs are created for displaced workers.
-- Greg Clark, A Farewell to Alms
The "Lump of Work fallacy" does seem to be a fallacy. However, that didn't help the horse. Why is that? The invention of "Artificial General Muscles" in the form of the internal combustion engine was a better-than-perfect replacement for all forms of horse labour. We should expect artificial general intelligence technology to do much the same to humans. There is no law in economics that prevents human wages from declining below subsistence. And a perfect substitute for human labour that requires no wages and is more intelligent would certainly vastly lower the value of human labour.
Oh wait. They are fine. They're just not used as constant slave labor all the time anymore, much like human labor.
Taken to a limit, a sector-wide displacement could have quite severe repercussions for a society. Imagine for example a majority of truck drivers* losing their jobs once self-driving cargo vehicles become available. Assuming they'll be adopted rapidly (for their advantages in safety, fleet efficiency, and reduced transit time due to continuous operation) and the change is quite sudden. Those truckers are now an immediate, acute problem for the country: unemployed, not spending, not earning, heavily invested in training and experience for a now non-existent job, and not (in aggregate) well-suited for other work. They are also a large, angry, nationwide group - a pre-fabricated voting block - ripe for political exploitation.
*I picked this example based on that map of common occupations that was floating round here a few months ago. By far the most popular job by state was "truck driver", so this is potentially a real issue.
The fallacy claims that the number of jobs is a zero-sum game. I'm not saying this at all. While more jobs will be created, because automation is happening at such an exponential rate, there won't be enough jobs replaced.
I have feeling when we do have AI, many of these economic principals will need to be re-written.
More from this article:
"Whereas some argue that immigrants displace domestic workers, others believe this to be a fallacy, arguing that such a view relies on a belief that the number of jobs in the economy is fixed, whereas in reality immigration increases the size of the economy, thus creating more jobs"
Immigration may increase the size of the economy, but if they are hired at let's say 30% of an American working at the same rate, it essentially dilutes the market. Americans now have to compete with someone making much less than them, which will mean a huge pay cut.
With AI, it will mean competing with algorithms/hardware that can probably be purchased for even less than the cost of a worker.
The end game for this will be a class of people owning all of this AI hardware, the poor, and a much smaller middle class of people in-between that have the skills to work on the AI hardware.
What happens to all of the people that aren't educated or don't have the skills in this new economy when all of the jobs they could do to make money have been replaced by AI?
What happens now to people who have no education or skills relevant to the economy? AI won't make this new problem, it's something we already deal with.
Right now, they can get a minimum wage job and survive. My point is that AI could completely replace these and the only way you will be able to get a job is to have some form of education or skill.
AI tends not to work like that. High-skill jobs tend to be easier for machine-learning than low-tech jobs. https://en.wikipedia.org/wiki/Moravec%27s_paradox
The general idea that technology deprecates people is true. It is also true that there is an escape valve in new needs, requiring new jobs, that allows for us to shift occupations and remain employed.
However, there is no law that states that the escape valve will always work, nor that it can work at high rates of job displacement.
Moreover, there are signs of low aggregate demand in developed economies. These signs are appearing now even in developing economies. This means that money is not percolating down into the hands of people, who can't then spend and create demand. There is a huge number of factors at play here (see the note about being a complex problem). Higher worker efficiency causing higher unemployment rates is one such factor. It can't be dismissed outright.
We may be witnessing Marx being right (albeit ahead of its time).
Again, automation isn't new, it just seems like it is because we're living it now.
With agricultural automation, the 30% change was filled mostly with new service jobs, not labor jobs. The same goes with A.I. automation - suddenly service jobs that were not possible before become possible. Jobs are not a zero-sum game.
Edit: I see superintelligent AI as not mere automation, but in effect creating an infinite supply of new labor. Humans are diluted out.
Also, the idea that this super intelligent A.I. can do everything is almost a god of the gaps fallacy. There are still many things that humans can do that a computer cannot.
This time it's the entire human niche that will (eventually) be automated - all cognitive tasks as well as all physical ones. That's the difference and why extrapolating from the past doesn't work for AGI.
The quote (from https://www.marxists.org/archive/marx/works/1865/value-price...):
"...one might infer, as Adam Smith, in whose days modern industry was still in its infancy, did infer, that the accelerated accumulation of capital must turn the balance in favour of the working man, by securing a growing demand for his labour. From this same standpoint many contemporary writers have wondered that English capital having grown in that last twenty years so much quicker than English population, wages should not have been more enhanced. But simultaneously with the progress of accumulation there takes place a progressive change in the composition of capital. That part of the aggregate capital which consists of fixed capital, machinery, raw materials, means of production in all possible forms, progressively increases as compared with the other part of capital, which is laid out in wages or in the purchase of labour. This law has been stated in a more or less accurate manner by Mr. Barton, Ricardo, Sismondi, Professor Richard Jones, Professor Ramsey, Cherbuilliez, and others."
(I personally am not a huge fan of Marx's writings, mainly because of the strong contempt for humanity that I feel emanating from them... incidentally I've recently stumbled upon this one, though.)
A scary analogy in favor of this argument is, a horse cannot economically perform almost any job today, hence most were slaughtered though few were kept for amusement. That happened after horses had a very good run where every improvement in technology increased "horse employment." If a machine exist to outperform a human in any conceivable job, it's not very different (and then you get to the discussion of the political options.)
A counterargument is that up until now this argument was wrong many times, and that we're very far from an AGI, or even from machines beating humans at every possible task.
"If the Luddite fallacy were true we would all be out of work because productivity has been increasing for two centuries"
More and more people are unemployed every day, while more and more workers get replaced.
The social welfare system in Germany started in the late 1800s when industrialization and internal combustion engines started to replace people.
Nowadays a country can be considered to have a "good" job market when only 5 to 10 percent are unemployed, while other countries, even in the first world, are at up-to 25%.
This all also extremely depresses wages, because the workers are competing against each other on the job market.
Again, if you look at automation over the centuries, it doesn't destroy jobs, it leads to people switching jobs.
If the machines are privately owned, and you have to pay for the products, you’ll have to work again, too.
At that point maybe we should consider having a UN Charta that tries to make sure the nordic model is applied on a global scale before we allow fully automated systems to replaces whole industries.
Or at least that could be the case. It's called post scarcity, and it should be something we strive for.
[0]https://en.wikipedia.org/wiki/Technological_unemployment#His...
Sure, the best of us will be fine, but that's always been the case. What about the ones who are struggling to remain relevant today? They'll get left behind unless something's done-- I'm not sure that retraining will be enough, not that there's any political movement in that direction.
It'll be a while before anyone is going to trust a load of valuable goods with an AI. There are security/theft issues, edgecase AI failure issues, loading unloading, etc.
We've seen entire industries leave the USA. Probably within your lifetime.
That said this can have devastating effects on economies. A lot of cities in the rust belt have felt this impact.
But the opposite can happen. One of the huge reasons US companies offshore production is because of labor costs. If you reduce the man-hours / product, it makes sense to open back up domestically.
Last paragraph in the wikipedia section:
"Research by the Oxford Martin School showed that employees engaged in "tasks following well-defined procedures that can easily be performed by sophisticated algorithms" are at risk of displacement. The study, published in 2013, shows that automation can affect both skilled and unskilled work and both high and low-paying occupations; however, low-paid physical occupations are most at risk.[7] However, according to a study published in McKinsey Quarterly[63] in 2015 the impact of computerization in most cases is not replacement of employees but automation of portions of the tasks they perform"
Oxford or McKinsey Quarterly, which source do you prefer?
I have hopes for a more utopian future versus one where most are homeless because their jobs get replaced. The transition will be painful.
There's also the mentality of clinging to jobs because it's needed for livelihood. Wanting to keep jobs that will bring 0 value to society. Think about all the crappy toys we make that's thrown out after a month or two. Who would want to work these jobs except if it's needed to sustain a decent quality of life outside of work?
Argh, these days, AI is like NoSQL a few years ago. The magical buzzword taken to an extreme level.
When do you think it will happen, the point at which AI will overtake most of the jobs done by humans? By the time it happens, the society will change significantly. Significantly enough so that it's probably pointless to guess. Will the society adapt to the change? Well, it has adapted more or less successfully to the changes so far.
Even when it happens, there will always be human factor. Humans are social, they need interaction with other humans.
We should probably slow down with all the 'AI will take everything away!' drama (which makes nice headlines which contributed significantly to this buzz, thanks a lot). We should remind ourselves, that we don't even have self-driving cars in mainstream (or, in software terms, 'production').
We are talking about a massive leap here, required in both society to accept the change and the technology to make it feasible beyond cool demos. By the time this happens, who knows. Maybe half of the humanity will go extinct because of WW3?
I get the hacker mentality, that we should try to change the world and everything. But sometimes, it's good to stop for a moment and do a reality check.
http://observer.com/2015/08/stephen-hawking-elon-musk-and-bi...
Which makes sense. The opinion of everyone I know that has actually worked with machine learning and state-of-the-art AI (as in, written code, ran experiments, etc.) is that the idea of today's AI suddenly waking up and taking over the world is utterly ridiculous, or at least not something we should be afraid of for the foreseeable future.
Large swaths of the population unemployable though... That's a real issue.
A living wage is the only good solution I can think of. Alternatively, pay people to dig and fill holes, but it's expensive and kind of pointless to make up unskilled jobs for people to do.
I do wonder how much a living wage would cost in the US though. Shift some money from defense? There's a good job for AI: balance a budget based on pre-defined policy goals.
IMO the one job that is most threatened by future progress in AI is the job of software developer.
As for the menial jobs, of course nobody cares whether a human or a machine mows your grass. But I do think that most people would rather be nursed by human being than a robot. I think there will be a big increase in care-giving jobs, which would be wonderful because the world is in dire need of care-givers.
Let me tell you there is no point in resisting the inevitable. In fact if anything preparing for it makes it easier when it actually happens.
That said, it would be really nice to cure diseases that are particularly painful or kill young people (cancer, etc).
Why won't they?
ftfy
Zuckerberg isn't afraid of AI because he already has more money than he will never need (or thousands of other people would need) in a lifetime. However, when AI gets good enough, it will make many jobs obsolete and they will not be replaced at a fast enough rate.
I use simple forms of automation at my own company. Instead of hiring 3 or 4 workers, I write software. I can't imagine how many jobs will be replaced when AI gets to the point of near-human levels of learning.