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Community Problem Report: Automation

The University of Texas at El Paso

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By Marco Soto
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Abstract

Computer automation has benefited the world and millions people in

unimaginable ways. It has become an extension of the human mind and a tool for the

human race. But this same tool might have unintended consequences for the

modern day economic structure. Although one could argue there are different forms

of automation, they essentially fall under the same definition. This one definition

explains its use in the many aspects of the worlds production economy, and soon,

its domestic economies. The adoption of computers that perform routine tasks in

the everyday lifestyles leads to a bleak prediction about the future of work in the US

and perhaps the rest of the world.


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Introduction

More than a century has passed since the first implementation of the

assembly line in 1913; first this method began using people as its backbone and

slowly transitioned to the use of computer-operated machines. Today this evolution

in the labor force is seen as an inevitable and more beneficial change. Production

output times were reduced making automobiles more affordable and accessible, and

quality control seems to iteratively increase. While most assembly line jobs were

lost to these machines, nearly the entire consumer economy and most economic

theories agree this is the most beneficial course of action in the production process.

However, while this form of automation is widely agreed upon, the magnitude of

automation of most jobs and professions in todays economy is neglected and not

fully understood. Automated machines are projected to replace a large portion of

the global work force in the coming decades (Frey & Osborne, 2015) and can create

a large-scale problem never previously encountered in economic history.

Automation Defined

After the implementation of machines in the assembly line, automation was

mostly used as a specific term in the production industry meaning to replace a

specific portion of a process that requires human labor to complete a task with

programmed machines. As the computer and Internet revolution beginning in the

1990s progressed, the term automation has evolved into a general term for any

repetitive process that has a semi-objective solution; semi-objective in that a close

to perfect solution is obtainable (i.e. driving without collisions and to the correct

destination, searching through documents with a certain grammatical or text


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sequence requirement). This new definition of automation allows for automation to

pertain to countless jobs in the world. This generalized definition is where

automation threatens the many sectors of the worlds work force.

Automation in Repetitive Tasks

The majority of jobs in the American economy do not require large amounts

of skill to complete (i.e. retail, service, transportation). For example, retail jobs

require people to give recommendations and process purchases, transportation jobs

require taking fares and transporting individuals to a location, and litigators are

required to search through thousands of emails, documents, and receipts searching

for anomalies or information pertinent to a case. Because these jobs are based upon

repeated processes with similar results, they are at the greatest risk of being

automated due to a substantial reduction of cost in providing a computer with the

same task (CGP Grey, 2014). Although the task of driving may not seem to have a

fairly easily obtained semi-objective goal compared to the jobs mentioned,

transportation occupations are the most at risk of being automated in the coming

years due to the development of many computerized agents that have successfully

driven numerous miles around the world (i.e. Googles self-driving car, Waymos

self-driving technology, Tesla Motors autopilot program). Once a general consensus

is reached throughout the country for the use of self-driving automobiles, most if

not all companies that provide some sort of transportation service, be it for people

or goods, will replace a high cost human employee that requires some sort of

minimum wage. These transportation jobs make up a very large portion of the US

workforce and will displace many people and increase the unemployment rate
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drastically. This rise will have obvious effects on the economy, as many people who

become unemployed will be forced to find occupations that they are unfamiliar with

or jobs that require little skill. If automation continues outside of the sector

previously occupied with automated machines, the number of jobs available to

those previously displaced will diminish and result in cascading unemployment.

This snowball effect of unemployment is somewhat exaggerated and would most

likely occur in a worst case scenario, but the worst case or situations similar to these

predictions are what make the matter of automation so dangerous for the world

economy.

Predictions and Possible Solutions

Critics of the automation revolution can combat the automation revolution

by claiming it is a pop culture fad that becomes a short term controversial talk

when individuals begin to notice new technology surfacing in the consumer and

producer markets. While this may have occurred in the past with scares resulting

from the printing press and cement mixers (Vox, 2017), this new revolution occurs

in the digital age where the Internet allows for instant information and knowledge

distribution. Problems and developments with artificially intelligent agents are

almost instantly shared and improved upon. This information-divulging factor is

unseen in previous automation revolutions and must be accounted for in the coming

decades. The speaker of CGP Greys video points out that the automation is not the

problem with economic unemployment, but the speed at which it occurs. This

change is what can lead to the previously mentioned cascading unemployment

effect because the economy will not have enough time to adjust to rising
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unemployment rates and produce enough jobs. As previously mentioned, this is only

worst case; according to Katja Mann and Lucas Pttman of the University of Bonn,

the effects of automation on the economy may have positive effects on the economy

by reducing need for labor intensive jobs and produce more comfortable, less

strenuous occupations in other market sectors. General awareness of this potential

problem, both in economic and computer studies, allows for preparations to be

made in the event that the worst case does take place. Certain job aspirations should

not necessarily be discouraged, but they must be informed about their potential

obsolescence in a changing society.

Conclusion

Automation should not be seen as a problem, rather as a byproduct of the

invention of computers. They first started as tools for simplifying daunting tasks

such as large calculations, or writing with ease and without stalling due to error. As

they become more accessible, they can help the developed world avoid grueling,

monotonous tasks such as cleaning and other filing; for more impactful tasks,

computers can improve medical diagnoses, perform jobs that can cause human

injury, and reduce automotive fatalities if developed properly. In other developing

parts of the world, intelligent robots can be used to purify water supplies, clean

communities, provide healthcare services, and perform jobs that can boost the

economy. These are only a fraction of the benefits that can arise from implementing

computer minds in the world society. The unemployment problems that can arise

may be reduced if the world is prepared with employment, monetary, and/or

economic alternatives.
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Sources

CGP Grey. (2014, August 13). Humans Need Not Apply [Video File]. Retrieved from:
https://www.youtube.com/watch?v=7Pq-S557XQU

Frey, C., Osborne, M. (2015) Technology at Work: The Future of Innovation and
Employment. Retrieved from Citi Group and Oxford Martin website:
https://www.oxfordmartin.ox.ac.uk/downloads/reports/Citi_GPS_Technology_Wor
k.pdf

Vox. (2017, November 13). Why the rise of the robots wont mean the end of work
[Video File]. Retrieved from: https://www.youtube.com/watch?v=TUmyygCMMGA

Mann, Katja and Pttmann, Lukas, Benign Effects of Automation: New Evidence from
Patent Texts (September 22, 2017). Available at
SSRN: https://ssrn.com/abstract=2959584 or http://dx.doi.org/10.2139/ssrn.2959
584

Cirera, X., The Effects of Innovation on Employment in Developing Countries: Evidence


from Enterprise Surveys (August 2, 2016). World Bank Policy Research Working
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Brougham, D., & Haar, J. (n.d.). Smart Technology, Artificial Intelligence, Robotics, and
Algorithms (STARA): Employees perceptions of our future workplace. Journal of
Management & Organization, 1-19. doi:10.1017/jmo.2016.55

New York Univ., NY. Inst. for Economic Analysis. (1984). The Impacts of Automation
on Employment, 1963-2000. Final Report. National Science Foundation, Washington,
DC.: Sponsor.

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