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Automation Leads To Unemployment | Assignment

   

Added on  2019-09-23

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Automation leads to unemploymentAUTOMATION LEADS TO UNEMPLOYMENT1

Automation leads to unemploymentTable of ContentsIntroduction:....................................................................................................................................3The relationship between automation and unemployment:.............................................................3The example of the oil and gas industry:.........................................................................................3Conclusion:......................................................................................................................................4Reference:........................................................................................................................................62

Automation leads to unemploymentIntroduction:The long run debate surrounding the statement ‘automation invites unemployment’ finds Marxistthinkers in its support who frankly admitted that the inclusion of machines in the production unitendangers the lives of laborers by creating an uncertainty regarding employment and thus createssocial inequality. The Marxists vehemently resisted the introduction of computers in the publicsector and raised their voice of support in favor of the unskilled labors in many developingnations (Bessen, 2016). The adoption of latest technologies in the workplace and the subsequentunemployment of the unorganized sector of employees have always been rejected by Marx’snotion of classless society. Now it is necessary to judge whether the claim of the Marxistbelievers has any substance in it or not.The relationship between automation and unemployment:The Luddites in the early era of the Industrial Revolution have opposed the use of machinery forthe textile industry in apprehension of job loss. There have been evidences that technologicaladvancement annihilated several jobs. For example, the banking sector no more recruits clericalstaffs to maintain ledgers for every single transaction (Danaher, 2017). Even the agriculturalsector cannot deny the implied effects of technical innovation in the form of unemployment forhuman laborers. Several producers are now leaning towards automation of the productionprocess by citing the reason that it will earn more profit for them by doubling the existingproductivity. However, they do not understand the simple fact that in order to earn additionalprofit, the producers need to have a market to sell their products (Musiał, 2018). If automationinvites mass unemployment, there will be no one in the market to whom the producers will sell.Unemployment will also invite less disposable income at hand which reduces purchase power ofindividuals. The reducing purchase power will undoubtedly shatter the producers’ dream ofearning additional profit.The example of the oil and gas industry:The below chart clearly indicates that the declining number of oil rigs is directly proportionate tofalling fuel prices (Frude, 2019). However, with the gradual recovery in the numbers of oil rigs,3

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