Question:
Some economists suggest that globalization is going to start targeting all those services jobs. If you want to keep up wages in that area, doesn’t it push us toward something like a universal basic income?
Some economists suggest that globalization is going to start targeting all those services jobs. If you want to keep up wages in that area, doesn’t it push us toward something like a universal basic income?
Barack Obama´s answer:
The way I describe it is that, because of automation, because of globalization, we’re going to have to examine the social compact, the same way we did early in the 19th century and then again during and after the Great Depression. The notion of a 40-hour workweek, a minimum wage, child labor laws, etc.—those will have to be updated for these new realities. But if we’re smart right now, then we build ourselves a runway to make that transition less abrupt, because we’re still growing, and we’re beating the competition around the world. Look, for example, at smart cars, where the technology basically exists now. The number of people who are currently employed driving vehicles of some sort is enormous. And some of those jobs are pretty good jobs. You know, people are worried about Uber, but the fear is actually driverless Uber, right? Or driverless buses or what have you.
Now, there are all kinds of reasons why society may be better off if smart cars are the norm. Significant drops in traffic fatalities, much more efficient use of the vehicle, so that we’re less likely to emit as much pollution and carbon that causes climate change. You know, drastically reduced traffic, which means we’re giving back hours to families that are currently taken up in road rage. All kinds of reasons why we may want to do that. But if we haven’t given any thought to where are the people who are currently making a living driving transferring into, then there’s going to be deep resistance.
The way I describe it is that, because of automation, because of globalization, we’re going to have to examine the social compact, the same way we did early in the 19th century and then again during and after the Great Depression. The notion of a 40-hour workweek, a minimum wage, child labor laws, etc.—those will have to be updated for these new realities. But if we’re smart right now, then we build ourselves a runway to make that transition less abrupt, because we’re still growing, and we’re beating the competition around the world. Look, for example, at smart cars, where the technology basically exists now. The number of people who are currently employed driving vehicles of some sort is enormous. And some of those jobs are pretty good jobs. You know, people are worried about Uber, but the fear is actually driverless Uber, right? Or driverless buses or what have you.
Now, there are all kinds of reasons why society may be better off if smart cars are the norm. Significant drops in traffic fatalities, much more efficient use of the vehicle, so that we’re less likely to emit as much pollution and carbon that causes climate change. You know, drastically reduced traffic, which means we’re giving back hours to families that are currently taken up in road rage. All kinds of reasons why we may want to do that. But if we haven’t given any thought to where are the people who are currently making a living driving transferring into, then there’s going to be deep resistance.
So trying to separate out issues of efficiency and productivity from issues of distribution and how people experience their own lives and their ability to take care of their families, I think, is a bad recipe. It’s not an either/or situation. It’s a both/and situation.
Whole interview:
The ‘Anti-Business’ President Who’s Been Good for Business
Whole interview:
The ‘Anti-Business’ President Who’s Been Good for Business
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