The "lump of labor" issue deals well with increases in labor supply and with a historical consequence of technological changes affecting productivity. But it's contradicted by the increasing GINI coefficient and the stagnation of middle-class wages and salaries. Something is changing.
There is a hollowing-out of the middle class going on. The arguments against the "lump of labor fallacy" say that shouldn't happen.
As Tom says, the goal is to take the "art" out of production. And as Iggy says, there are more middle-class jobs that can be handled by computers.
We've seen some of the consequences already. There simply are no compensating numbers of new jobs in the middle range of skill and income, even though there are plenty of jobs at the bottom end, and a few more at the top.
The idea was based on historical experience with incremental advances in production technology. In most cases, it just meant that one worker could produce more. Now it often means that you don't need a worker at all. For that, one needs a new theory.
One simply looks at Pepsi and Coke to see how far automation can be carried. "The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism, until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism."[Fascism] It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from the "classic" ideal of egalitarian Socialism. - Ludwig von Mises (1922)
You found a niche that you fit into. Those niches are getting to be smaller and smaller in numbers.
Which is why so many of my clients have retired out of California, taking a few machines with them to their new digs in Aridzona and Idaho and making high dollar custom medical parts and gun parts working in a small home shop on their acreage and sleeping well every night..because when they sold out in California..they made enough money to pay cash for everything when they moved and have money in the bank.
I wish my niche hadnt started to fold...Im pretty good at what I do.
Shrug
Gunner
"The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism, until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism."[Fascism] It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from the "classic" ideal of egalitarian Socialism. - Ludwig von Mises (1922)
Exactly. And "more education" and "job retraining" is often not the answer. Let's say that you have a person of modest abilities, who was replaced by a computer. Even though you could teach that person a new skill, you could teach a computer a new skill as well, so the computer wins anyway.
I do not have any solutions, but I do have apprehension.
Ayup. Same with farmers, boot makers, doctors etc etc.
Once they get snugged into their niche...the others are second place winners
No..there certainly isnt. And its NOT going to get any better any time soon. The Left has cut the foundation from under this nation and the already tottering structure is about ready to collapse.
One hopes you have enough land to grow crops on..you may need it before long.
"The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism, until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism."[Fascism] It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from the "classic" ideal of egalitarian Socialism. - Ludwig von Mises (1922)
Go get and read a copy of _Who Moved My Cheese?_ It's time to adapt, old buddy. Find (or CREATE!) another niche and fill it.
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$0.01 + $3.99 s/h, or see your local library.
I'm working on my 4th major career change now, too. (auto mech->QA->elec/comp/web tech->handyman->cnc mfg) I still don't know what I want to be when I grow up.
Likewize. There may be WORK for everyone, but not jobs. Work for no pay or gain is not a job. Lots of available "work" but very few "jobs" in Burkina Faso, Zambia, and other poor third world countries.
The problem is, in a society where everyone wants a "job" a lot of the "work" that needs to be done never gets done.
Volunteer "work" gives a man purpose, even if it dies not provide him any gain..
Someone who has proved they are capable of and not afraid of "work" often gets a "job" out of it. The lazy one who sits around waiting for a "job" but does no "work" can be easily overlooked.
Its not just in foreign countries. Far too many of us are busting our ass finding work..and then its so damned little it barely covers the fuel to go to that work.
Ah but if the Shining Times ever return......!!
Shrug
"The socialist movement takes great pains to circulate frequently new labels for its ideally constructed state. Each worn-out label is replaced by another which raises hopes of an ultimate solution of the insoluble basic problem of Socialism, until it becomes obvious that nothing has been changed but the name. The most recent slogan is "State Capitalism."[Fascism] It is not commonly realized that this covers nothing more than what used to be called Planned Economy and State Socialism, and that State Capitalism, Planned Economy, and State Socialism diverge only in non-essentials from the "classic" ideal of egalitarian Socialism. - Ludwig von Mises (1922)
Ever since I was very young, wheel brushes were wound by hand. In the early 70's, one legendary winder operator made $350 per week in bonus over and above his salary. That was good money back then. Today, a good winder will make 1/5 as many parts even though I've raised the bonus and lowered the bonus threshold. People just won't do more than they have to in order not to get fired. THAT'S why I automated the production and eliminated the "Art" factor. I accept the fact that it's a different time now, never to go back to the old ways. AND, the new ways are better...but not for jobs. I wonder...more and more people and less and less manufacturing jobs. Agriculture is the same, mining and oil is the same. Wealth creation does not rely on large numbers of people anymore and the skill set if way different. Could that be why wealth is being more and more concentrated?
This discussion has been about wages, and finding good jobs is getting more and more dificult. Computers eliminate jobs in two ways. One is where th e computer does the work that used to be done by a human. The other is whe re the computer increases the productivity. An example of this is the Draf tman. A draftman is now much more productive than when drawings were made o n vellum using ink. I have no good solution for finding good jobs, except to say that one needs to constantly work at staying current in your field. I had a lot of experience with that as the estimate is that half of what a n electrical engineer knows is obsolete every seven years. So I had to con stantly learn in order not to become obsolete.
But wages are only part of getting by. The other part is saving and invest ing. Pretty much all my working life, I spent less then what I made and in vested that money. So now I have been retired for fifteen years and the l argest part of my income comes not from pensions or Social Security. But f rom dividends and the " Required Minimum Distributions " from my IRA's. So my solution to starvation wages is income not based on wages.
Dan
Now for the metalworking part of this post. I managed to disassemble my Mi ll/Drill into pieces I could cope with and move the parts down the stairs t o the basement. Still need to beef up the stand and move it to the baseme nt. The garage is just too cold in the winter and too hot in the summer.
In surfing the net, I found this website that has both electronics and meta lworking info.
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