Saturday, 12 November 2016

Thoughts on the wave of populism, automation and the future of society

I am writing this little essay mostly for myself and maybe for a few of my friends who want to read it. I do not claim that I have any definitive answers nor that I am worth listening to. However, just like most of the people I know (if not everyone), I am deeply upset by the US election that delivered the control of the world’s most powerful nation and the only one of the “big 3” (USA, Russia, China) that has in the past at least tried to keep liberal values and human rights safe across the globe to a populist advised by the religious-right (aka the 'backwards thinking people'). We can debate the methods and also the motivation, but that is not really what I am getting to. I want to remind myself and everyone who is reading this of one thing: the world has changed. We need to change. It is in our hands to make sure the world does not finally retreat into another era of fascism and war (yes, war). And it is late.

I am talking specifically of my “bubble” of people – well-educated, liberal and international folks who have literally a 99% chance of having supported Clinton in the US election, supporting BRemain in the Brexit vote and supporting social security to some degree, a discrimination-free society (as far as possible) and some mixture of sensible state regulation for business, while allowing it to thrive. We fucked this up. 

What is happening in the developed world is crystal clear to me. Automation is costing “less-skilled” workers their jobs and livelihoods. A year ago there was no such thing as “Bloomberg Automation”, now the first summary I read on ANY company’s earnings report is written up by a robot. Three years ago, all of a sudden, I saw automatic chashier machines pop up in super markets next to the people. Nowadays, these machines outnumber people 4 to 1 at the places I shop. In my view it is not a stretch to see how computers will become ever more intelligent, better at learning and might yet master the art of creativity. No one’s job is “safe” from this development. I am sure there are hundreds of different opinions on this, but my personal opinion (and this is my essay after all) is that there are not going to be enough jobs in the “service” sector for everyone to keep having one. And I also believe robots will start making entries there as well. Can a robot really not cut a person’s hair if a robot can perform complex surgery? I doubt it. Will Uber Cars still be driven by actual people in 10 years? I find that almost a utopian thought.

As people lose their jobs and the way to support their families, they fall out of the bubble I was speaking about earlier. They are literally no longer a part of the society of those people that I am fortunate enough to belong to. There is, across the Western world, by now a part of the population that I would estimate around 25% that live in their own world, just like we live in ours, that does not take part in the same life any longer. These people do not meet us and they do not see any of our liberal posts on social media. They do not realize (or care) that an administration like Trump will actually be worse for them tax wise. And they may not need to care – they do not pay taxes anymore… This entire part of the population is now especially susceptible to one thing: populism. Whether that is the right or the left does not matter much, but recently the explanation “Immigrants are taking your jobs” seems to be the easiest to sell and so it is mostly the right that benefits. This is not a US issue. This is happening everywhere. UK IP in the UK, Trump in the US, Le Pen in France, the 5 star movement in Italy (left), Podemos in Spain (left), Varoufakis et al in Greece, the “Alternative for Germany” in Germany, Geert Wilders in Holland, Blocher in Switzerland, Putin in Russia (slightly different elements there I admit). I could go on, it is happening everywhere. And WE, the people in my bubble are the only ones who can still stop this.

The first thing we should all realize is that the described “threat” from automation is first and foremost a good thing. It takes only very little imagination to see that in a few years humanity will no longer need to do the jobs that no one wants to do. We will, as a matter of fact, no longer “need” to work. We would be able, looking at the sheer abundance of resources and wealth in totality, to allow for a life in happiness for everyone (yes, around the globe) and allow everyone to simply follow his or her interests. Of course we will all still work on something and there will be a need to maintain the machines that serve us, but I doubt there won’t be enough people willing to invest some of their time to do this. Scientists will never stop inventing and researching, gamblers will never stop looking at markets and trying to trick them, artists will paint and mechanics will repair cars. For fun, to keep society working, for personal satisfaction, but no longer to survive and put a meal on the table.

Now, I believe this is a likely scenario. Sadly the thing that needs to happen for it to become true is currently more likely to happen via wars and revolutions rather than thought through transition from one society model to the next. And that is on us. The people who still have jobs that pay well. The people who have a liberal mind and understand that Donald Trump only benefits themselves (economically) but certainly not the people who voted for him. Most importantly, the people who have the money and who are hoarding the world’s wealth either by entitlement (i.e., I inherited this so I deserve it) or through building empires (i.e., I was lucky to receive a good education and a smart brain so I deserve it). We, these people, need to realize that a peaceful transition between our current societal model “work to survive and exist” to “work to enjoy and contribute” is only possible if we give. We need to give our wealth and share our power if we have any. We need to involve the people who lose their jobs in automation and enable them to have a great life as they merely happen to be the first ones who will be “freed” of labour. We need to make sure that there is a change in society away from “if you do not work you are lazy and you should not have too much money”. It is our responsibility alone. Otherwise this doubtlessly growing number of people, will resort to violence at some point. I do not know how we can effect this, but I have a feeling it starts with an inheritance tax that scales up to 100% (yes 100%) after a certain base rate (which can be high, could even be 5m USD per person; does anyone really need to inherit more than that?) and it probably includes a “basic income” for everyone in society that is far higher than current models, as well as free education that is state sponsored and no possibility at all to avoid paying taxes via loss carry forwards or other tricks.

Yes, you can disagree with me on all the things I write here and some of them might even be outright wrong, very debatable or far-fetched. But unless we want to wake up in a world with populist presidents everywhere that undoubtedly does not lead to a better society, then we (my bubble) need to at least start thinking about this and how we can move on and deal with automation (which again, is a good thing) properly. Please, try to work for this change and try to signal to your politicians that you want this change. Try to show that you are open to a better society and maybe even come up with better ideas. Mine certainly are not good enough. Most importantly, the next time you think or talk about an unemployed person – never, not for one second, assume that he or she is just lazy. Instead maybe invite them to think about this problem here and what his or her best solution would be.


Thank you for reading.