Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 25 February 2016

Age of Automation

Two days back , White House Council of Economic Advisers ( CEA ) released a report which predicts the probability ( likelihood ) of automation taking away jobs from humans

As per CEA Chairman Jason Furman , the risk of having your job effectively taken over by a robot " varies enormously based on what your salary is " 

In other words, the more skilled , creative and high-earning you are , less likely your job will be taken over by automation

CEA's preditions ( of jobs being taken over  in USA ) , are as follows :

*  For hourly wage below $ 20............................. 83 % chance

*  For hourly wage between $ 20 and $ 40...........  31 % chance

*  For hourly wage above $ 40............................   4  % chance 

PROOF

In USA , manufacturing jobs have declined by more than 7.2 million ( or 37 % ) , since 1979

In 1965 , manufacturing accounted for 53 % of the US economy

By 1988 , it accounted for for only 39 %

In 2014 , it accounted for less than 9 %

In India , manufacturing's contribution to GDP is currently 16 % , which NDA government wants to raise to 25 % by 2020

WAS  THIS  FORESEEN  ?

Way back in 1950 , Norbert Weiner wrote in his famous book ( The Human Use of Human Beings ) :

"  Let us remember that the automatic machine , whatever we think of any feelings it may have or may not have, is the precise economic equivalent of slave labor

Any labor which competes with slave labor, must accept the economic conditions of slave labor

it is perfectly clear that this will produce an unemployment situation, in comparison with which the present recession and even the depression of the thirties will seem a pleasant joke

This depression will ruin many industries - possibly even the industries which have taken advantage of the new potentialities 

However , there is nothing in the industrial tradition which forbids an industrialist to make a sure and quick profit , and to get out before the crash touches him personally  "

No wonder , Father of Cybernetics , had foreseen the future  !

LESSONS  FOR  INDIA  ?

*  At a salary  of  $ 2 / hour ( approx Rs 28,000 per month ) , can our " Semi-Skilled " workers compete with the " automatic machines " of USA ? 

{   Any labor which competes with slave labor, must accept the economic conditions of slave labor  }

* At a monthly income ( not " Salary " ) of $ 10 / hour ( approx Rs 138,000 per month ) , can our highly skilled engineers , take over those " creative " US jobs ? 

I am sure they can if we shift our focus from " Job seekers " to self - employed , " Job creators " ( There is just NO WAY , we can create 12 million jobs per year )

IS  THIS  POSSIBLE  ?

Of course !  Just abolish Personal Income Tax and witness the miracle  !

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hemenparekh.in / blogs

26  Feb  2016 

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