Abstract

Robotics and artificial intelligence are beginning to fundamentally change the relative profitability and productivity of investments in capital versus human labor; creating technological unemployment at all levels of the workforce; from the North to the developing world. As robotics and expert systems become cheaper and more capable the percentage of the population that can find employment will also fall; stressing economies already trying to curtail "entitlements" and adopt austerity. Two additional technology-driven trends will exacerbate the structural unemployment crisis in the coming decades; desktop manufacturing and anti-aging medicine. Desktop manufacturing threatens to disintermediate the half of all workers involved in translating ideas into products in the hands of consumers; while anti-aging therapies will increase the old age dependency ratio of retirees to tax-paying workers. Policies that are being proposed to protect or create employment will have only a temporary moderating effect on job loss. Over time these policies; which will impose raise costs; lower the quality of goods and services; and lower competitiveness; will become fiscally impossible and lose political support. In order to enjoy the benefits of technological innovation and longer; healthier lives we will need to combine policies that control the pace of replacing paid human labor with a universal basic income guarantee provided through taxation and the public ownership of wealth. The intensifying debate over the reform of "entitlements" will be the strategic opening for a campaign for BIG to replace disability and unemployment insurance; Social Security; and other elements of the welfare state.