Charlie Concord wrote:
Why not?
It's important to realize that when you innovate in a way that puts a million truckers out of work, you don't somehow create a million jobs for programmers of driverless trucks. To see this, just observe that workers' "wages" are businesses' "costs". If automating the trucking industry really created exactly as much work (measured in dollars) as it destroyed, then the costs of automated trucking would be the same as the costs of today's driver-based trucking, and trucking companies would not make the switch, because there would be no point. But they will make the switch, for the sake of efficiency, which means they will face lower costs, which means payments to workers will be lower as well.
Now I concede that in the case of many labor-saving innovations, new jobs
are created. I think the way this happens is that the new products create new opportunities for people to do new things, which creates new demand for novel goods and services, which creates new jobs. However, in this particular case, the demand for goods and services that we are losing (our demand for an army of truckers to transport
necessities across hundreds of miles) is a very strong kind of demand. It's a demand for something that's very necessary to us. Strong demands -- demands for things we
need -- create jobs that pay high salaries. What kind of demand will step in to fill the gap to create those
new jobs that will supposedly employ all the displaced workers? I think it will be a very weak kind of demand. The displaced truckers will have to move into industries that cater to whim, rather than need, and that will cost them financially.