Unemployment: How Should Robots Affect The Economy
With the ever increasing growth in technology, unemployment will be in the greatest danger in history. The world is growing faster than ever and with it come many beneficial advancements. But what is unaware to the world is behind the scenes; the economics of this world. Over the years unemployment has fluctuated due to the introduction of machinery. What used to be thirty cashiers in a Walmart, is now one employee overseeing thirty robotic cashiers. With robots, costs of production have decreased significantly however, massive structural unemployment continues to grow. How are robots affecting the economy as a whole and how can it be changed?
The primary concept of this questions lies on the basis of unemployment and taxation. With the placement …show more content…
Many policies have been put in place in order to expand or contract the economy. Fiscal policies are actions such as taxation and government spending, while monetary policies are actions such as buying bonds. Unemployment can be changed using either policy, but for purposes of making a larger impact, fiscal policy should be utilized.
There are many viewpoints on this subject but two stand out as the most plausible. The first point of view comes from Bill Gates. While discussing the problems of robotic machinery he states, “certainly there will be taxes that relate to automation. Right now, the human worker who does, say, $50,000 worth of work in a factory, that income is taxed and you get income tax, social security tax, all those things. If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level” (Morris Ian, 1). What Bill Gates is getting at is a counteraction of structural unemployment. Instead of eliminating robots, Gates wants to continue utilizing them. But instead of leaving these robots free from the taxes that the human worker would experience, robots would be taxed the same. This method
The primary concept of this questions lies on the basis of unemployment and taxation. With the placement …show more content…
Many policies have been put in place in order to expand or contract the economy. Fiscal policies are actions such as taxation and government spending, while monetary policies are actions such as buying bonds. Unemployment can be changed using either policy, but for purposes of making a larger impact, fiscal policy should be utilized.
There are many viewpoints on this subject but two stand out as the most plausible. The first point of view comes from Bill Gates. While discussing the problems of robotic machinery he states, “certainly there will be taxes that relate to automation. Right now, the human worker who does, say, $50,000 worth of work in a factory, that income is taxed and you get income tax, social security tax, all those things. If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level” (Morris Ian, 1). What Bill Gates is getting at is a counteraction of structural unemployment. Instead of eliminating robots, Gates wants to continue utilizing them. But instead of leaving these robots free from the taxes that the human worker would experience, robots would be taxed the same. This method