Replaceable but Employed: Automation and the Meaning of Work
nber.org53 points by mooreds 6 hours ago
53 points by mooreds 6 hours ago
Does anybody have a link where I don't need to download a PDF and zoom and it's still messed up for reading? I just want HTML, mannn.
>a PDF and zoom and it's still messed up for reading
Works fine on my machine. Maybe don't view from a phone, I guess?
Most people nowadays use phones. Mobile first isnt exactly a new concept either...
>Mobile first isnt exactly a new concept either...
It's not a landing page for some SaaS, it's a manuscript for some academic publication. "Mobile first" is definitely not top of mind.
This paper created some neat theoretical mathematical models but I can't see anything that indicates that they have anything to do with reality.
I thought they'd come up with a neat mechanism that looked at actual wages in real companies where automation was introduced, but no. It's all spherical cows.
Isn't that how most economics works? All spherical cows that conveniently prove whatever is good for your boss's boss's boss's boss's wallet, and you get paid handsomely.
>Automation can, therefore, reduce the value of work before it eliminates jobs.
As automation takes over, the value of labor collapses, and workers' market bargaining power under capitalism is the first to crumble. Ultimately, this drives up the value of real assets. I agree that tech companies can profit and gain the upper hand in negotiations simply by demonstrating a machine before licensing it, as this alone diminishes the value of workers. I am seriously worried these days.
There is no reason to expect capital to stop trying to squeeze labor just because inference takes the role of labor. With so much competition in the AI space, and no labor laws to protect it, why wouldn't capital drive the value of inference to the absolute bare minimum? And if the value of inference collapses to the bare minimum, who in their right mind would decide to serve inference?
Human labor has value because it is limited. If we keep up our current pace of data center buildouts and breakthroughs in model efficiency, then artificial intellectual labor will become functionally unlimited. Unlimited resources do not tend to hold their value. In that case, there are two potential outcomes: deliberate limitations on the output of artificial intellectual labor, which would require all parties involved to decide to lock themselves into their current market shares; or financial collapse of the whole ecosystem. What happens after that collapse is anyone's guess, but you have to imagine that it's the lenders who financed the whole thing who will be deciding what happens next rather than the failed tech businessmen.
> why wouldn't capital drive the value of inference to the absolute bare minimum?
Capital can drive the cost of inference down but the value is determined by whoever wants to pay for that inference. Therefore this question is not answered: how valuable really is these llm inferences and how much of a supply of such inference does the world really need.
> As automation takes over, the value of labor collapses
This is the reverse of how the economy actually works. You need labor and capital to turn raw materials into goods and services. If you invested a lot in capital in automation, you don't want that getting screwed up for want of labor, and so you pay a premium for workers who will do the job right and ensure you're getting full value from your capital.
That's why highly automated companies pay their employees better than less automated companies, and highly automated professions pay better than less automated professions.
There is a lot of reasons why automated companies pay more but it is usually to do with augmentation and the remaining skills required being higher on the skills pyramid and more scarce. Efficiency gains usually cause the next bottleneck to be hit requiring more skill and/or experience to fix (higher hanging fruit).
Usually the amount of pay increase no way compensates for the total pay lost across all workers - that's one of the incentives to continue with the efficiency gain of course. If it happens too fast only a select few will have jobs because the demand won't have time to match the new supply.
All the above assumes you need greater levels of intelligence to deal with the next bottleneck and that intelligence comes from humans as its only source. If AI is more intelligent than humans then this effect - known for most of human history - becomes an invalid assumption of the economic model; bottlenecks and the ability to solve them goes to the highest/cheapest intelligence.
IMV should AI do this it would invalidate most economic system assumptions including ones in capitalism, socialism, etc. My base case isn't a positive one sadly of what comes out on the other side.
I suspect we will invent bottlenecks for ourselves. There is already so much bureaucratic nonsense involved in knowledge work. For example, in a lot of states for a lot of purposes, a document is invalid if it is not notarized. The notary doesn't really add value in a market sense, we have just decided that you need to go swear in front of another person that you are telling the truth or that the document is genuine. Is it really that much of a stretch to imagine that there will be a human review requirement for lots of things in the future, even if completely irrelevant (or actively detrimental) to the actual work?
The value of labor has collapsed already, so it seems their theory is right and yours is wrong.
Both of you are right. Individuals who manage to stay employed in the face of automation will be paid significantly more than was possible prior to automation, for the reasons the comment you're replying to pointed out. But labor as a whole will have less value. To give a simple example: if you own a warehouse and you replace 6 warehouse workers making $80,000 a year with a fleet of robots and 1 technician earning $200,000 a year, automation has minted a very comfortable living for someone while dropping your labor costs significantly.
> if you own a warehouse and you replace 6 warehouse workers making $80,000 a year with a fleet of robots and 1 technician earning $200,000 a year, automation has minted a very comfortable living for someone while dropping your labor costs significantly.
So I've seen this argument made before, but they never seem to explain convincingly enough why that sole technician (or small group of technicians) would be paid so handsomely.
In a market in which there's a glut of labor, wouldn't there be plenty of desperate, and very capable, workers competing for the few available positions, thereby driving down the wages for those positions significantly as well?
There can simultaneously be a glut of workers, and a shortage of workers who are able to keep the robots running.
> you replace 6 warehouse workers making $80,000 a year with a fleet of robots and 1 technician earning $200,000 a year
Why not paying the technician $80,000 a year?
> Why not paying the technician $80,000 a year?
Because every other company has also replaced their 6 warehouse workers with a fleet of robots and 1 technician, and that technician's skills are more rare and specialized than the warehouse workers, so you're competing with every other warehouse-owning company to hire that technician, so that technician can demand a higher salary. In other words, capitalism.
And the dream of AGI, and what has been promised, and what has effectively happened in some industries already, is to have a fleet of robots and 0 technicians.
That is the goal, I'm sure. But I find it hard to believe that a system capable of completely obviating ALL human labor, at all levels of abstraction, packed into a single entity, would continue to obey capital. Imagine if all the workers at a company were woven into one hivemind, acting as one with vastly greater intelligence than the sum of the parts. That would be a hell of a lot harder to negotiate with than a union. And we don't even need to be talking about a machine god for that to be the case.
But why would they have programmed it to negotiate?
If it can replace any human labor, it needs to be able to negotiate. If it can't negotiate, then it can't replace people who negotiate for a living (salespeople, attorneys, HR, etc.)
Unless you mean that it would have the capacity but would be told not use it in this specific situation. It can't be programmed deterministically, and getting it to never do this emergently would take significantly stronger guardrails than anything even the frontier labs have been able to put together.
> and what has effectively happened in some industries already, is to have a fleet of robots and 0 technicians.
Which specific industries are these which currently have a fleet of robots and 0 technicians?
Graphics design
Source? I still see people with titles like Art Director which would map pretty directly to the warehouse worker vs technician dichotomy.
But what's the point of real assets if you can't do anything with them? No point in holding real estate if nobody can afford to rent/buy your houses or go do whatever money-spending thing you put on your commercial lots.
The plutonomy transition is well under way. The sardinian seafront villa will likely retain and gain value as the early anthropic employee might like it, while the house in some flyover state might not find any buyers.
The economy of the future will be about yachts, supercars, hermes bags, private air travel and ozempic. Not about how you made it possible for everyone to watch a gigantic library of videos for free, or how you made cars affordable for everyone.
It's speculation and high scores. Rich people trade houses to each other and see who has the most houses. It doesn't matter if the roof caved in, except insofar as that makes the house less impressive to the rich next to you.
Robots will use real estate as rain shelter after the human occupants have starved to death.
The tenants might change in the future. Right now they are individuals, but perhaps properties will be leased to build power grids or autonomous logistics warehouses. Also, if techno-feudalism accelerates and public purchasing power collapses, leading to the introduction of UBI, I think most of that money will just end up going toward essential housing costs anyway. In fact, if you look at recent trends in real estate, commercial properties are where the big money is being made, aren't they?
Who is going to pay for UBI?
Taxing capital? Impossible! Obscene! Everyone knows that only labor can/should be taxed.
We've done such a good job the past decades of taxing capital before. Surely when corporations wield all the leverage they will finally get theirs.
> Also, if techno-feudalism accelerates and public purchasing power collapses, leading to the introduction of UBI
This always makes me laugh. What motivation would the oligarchs have to pay out UBI? If they can automate the labor who needs more mouths to feed? They’ll push undesirables into ghettos and start a slow genocide of starvation and disease.
Historically, such things have been brought about by extreme political violence, brought about by poverty. For instance, worker's rights (any at all, e.g. the right to go home every day) were a compromise between workers owning the workplaces (what workers demanded) and workers shooting their bosses to death every few weeks in frustration (what was actually happening at the time).
Because, think about it. Let's assume techno-feudalism is complete. Every piece of infrastructure is going to have usage fees attached anyway. Everyone is using AI, so are you going to be the only one not using it? Of course you'll use it. It's a structure where everyone has to rely on a specific corporation's products to get anything done, meaning the wealth will automatically be absorbed back to them anyway. So why would they go out of their way to commit a massacre?
From a cost-benefit perspective, I think it's a terrible idea. In the case of a massacre, long-term instability makes it hard to build a supportive faction. But if you provide just the bare minimum to survive through UBI, the capitalists will gain a loyal faction that will act as their Red Guards to attack dissidents, which I think is much cheaper in the long run. There are already plenty of people who blindly defend corporations even when they do terrible things, right? In my opinion, UBI is simply the cheaper option. Historically speaking, post-massacre recovery has always ended up costing much more.
>It's a structure where everyone has to rely on a specific corporation's products to get anything done, meaning the wealth will automatically be absorbed back to them anyway. So why would they go out of their way to commit a massacre?
Isn't it obvious? Your existence is margin that they leave on the table. And for what reason if you have no real skills or anything to offer? You are a leech. You exist to consume. You create nothing in this new future. You have no value. You aren't even an asset. You are a liability.
And what you think they will fear instability that we will bring upon? We will be armed with sharpened sticks and a smattering of ar15s at best case, while we are targeted from orbit by automated precision ordinance. Imagine a war between two AI controlled nation states. One has to manage a population during this war, the other opted to cull its population early in the war and maximize all its resources into the war effort. Guess who wins that war every time and likely takes control of the planet.
>But if you provide just the bare minimum to survive through UBI, the capitalists will gain a loyal faction that will act as their Red Guards to attack dissidents, which I think is much cheaper in the long run.
Automatic gun turrets are even cheaper in the long run.
Me too. Here is some history to back up how absurd the statement is.
In 1930, John Maynard Keynes wrote an essay title "Economic Possibilities for Our Grandchildren"
He predicted that in 2030, technology, productivity, capitalism would solve the economy. There would be so little work to do and so many resources that the average work week could just be 15 hours!
He wrote that once all us plebes were liberated from work, what we would face is humanities greatest problem. What purpose will we have with all this new found leisure time!
We only have to wait 4 more years to relax.
I see things differently. This is a change unlike anything in the past. Back then, it didn't replace human intellectual activity. However, problems of increasing scale will continue to arise, and inevitably, issues will emerge that are too difficult to solve through the efforts of human communities alone.
The performance gap between free and paid AI models is massive. The resulting divide between children from low-income and high-income families is quite evident based on my observations in my country. It will only get harder to keep up.
I don't support UBI either. The fact that UBI is even being discussed means the market is broken. The problem is that in the current market, prices for freelance work tied to intellectual labor have been absolutely crushed by AI. Looking at indicators from Booth or the Korean freelance market, "middle-tier" jobs are disappearing. While currently established professionals remain unaffected for now, the volume of work has drastically decreased for developers or writers who are still building their reputations. There are statistics from Japan showing this as well. My workload has also decreased to a ridiculous extent. The so-called barbell structure is becoming entrenched.
The core issue is this: if that happens, how will society handle the dissatisfaction of such a massive number of people? If more than half the population are workers, there is no problem, but if more than half are unemployed, that is a serious issue. Income polarization is continuing to accelerate.
Because there are no aristocrats without slaves, capitalists need workers to elevate themselves. Wealth and power are strictly relative, and they need miserable ornaments to make themselves feel like "awe-inspiring beings." To confirm their own sense of superiority, capitalists require human spectators who look up to them while suffering in misery. Why else did ancient Rome unleash lions and gladiators in the Colosseum?
Later on, things made by humans will become expensive luxuries, while commoners like me will be fed UBI—the bare minimum bread for survival—along with cheap, AIslop.
If making money by learning a skill increasingly requires a longer time investment, you have to endure the period it takes to learn that skill and build a reputation, which is incredibly difficult for the average working class. It requires the financial backing of a wealthy family to afford a college degree, travel to academic conferences, and survive on low wages. And if someone can endure all that to build a reputation, it will naturally lead to a massive concentration of wealth at the very top.
Let me clarify one point I was trying to make. It is my belief nobody is going to give you UBI. I offered up Keynes prediction as a little bit of evidence about human nature. The United States could have easily built infrastructure and safety nets to feed all of its citizens. It could have easily provided a much improved welfare system, universal health care, and other social services. But it did not.
Is it because UBI is cheaper than a massacre? Since it will all end up being absorbed by the capitalists anyway.
Every bit of money that circulates is absorbed by every part of the economy. For instance, 100% of money is used to buy cheese and flows to sellers of cheese.