For many decades people have speculated when technology would eventually take over humanity. With ideas of self-driving cars and most service-oriented jobs being taken up by robots, now more than ever, that future seems obtainable. Certainly, this instills a lot of fear in the many people who rely on those service-oriented jobs such as cashiers, tellers, and taxi drivers for a yearly income. Heather Kelly, in her CNN article, “Robots could kill many Las Vegas jobs,” outlines issues that service employees could face in the very near future and how we can potentially remedy them.
The potential economic backlash that can occur from robots is already a fear for many keeping in mind that in five to ten years, Las Vegas will feel the impact of a “robot revolution.” Employees who are at risk of replacement have two options, either receive training to become more relevant in the modern world or go into early retirement; quite the choice for someone who depends on income. These workers certainly wouldn’t be left to fend for themselves without any financial assistance. America has many safety nets – such as social security and Medicare/Medicaid – that can ensure that people are protected, even if for some it means minimal coverage. It is even more concerning that “Black and Hispanic workers are more at risk to lose their jobs” than white employees are, which doesn’t bode for a good economic future seeing that Black and Hispanic citizens often find themselves at the lower end of the economic and educational spectrum. This predicted trend points to many good reasons for boosting the education of our citizens. Kelly cites a shocking statistic which states that people with a doctoral degree have a 13% chance of being replaced by robots while people with only a high school education have a staggering 74% chance of being replaced by automation. Women as well will be “disproportionately affected” since they often occupy those service roles that are at risk for automation.
Although robots appear to be the bane of our existence presently, business owners have much to gain from automation. For starters, as amoral as it may sound, having no workers to pay means having more money to spend on other expenses to benefit and even expand companies. This can mean more profit for businesses with the addition of capital and wage-free labor. Additionally, proprietors don’t have to worry about providing insurance and benefits to their employees which means even more money can be allocated elsewhere. Profits will see further increases since automation will boost the marginal product of labor due to the elimination of the human factor, which can often limit production. In other words, efficient machines that don’t need lunch breaks or sleep can constantly produce which leads to more output and consequently, more profit (provided that the product sells adequately).
Even though many workers have fear for the future of their jobs, there is still hope. Automation requires skilled workers for construction and maintenance, and that can hopefully be filled in by the excess supply of unemployed workers who will eventually lose their jobs to robots. This is where the training comes into play. Many of the service industry employees only have a limited education but with training, they can become skilled in the trade of automation and potentially earn even more than what they were making before. The economic advantages to be gained from this revolution don’t seem to have very many limits. As with any extreme transition similar to this, there will be many ups and downs for workers, but the robot revolution seems to be leading us towards a bright future.