You wouldn’t think that policymakers need to be reminded that technological progress raises living standards and creates new (and better) employment opportunities. Alas, some comments President Obama made in a speech last week seemed to link technology to job losses. “There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers,” he said. “You see it when you go to a bank and you use an ATM, you don’t go to a bank teller, or you go to the airport and you’re using a kiosk instead of checking in at the gate.”
In an essay in today’s
Wall Street Journal, one of my Mercatus Center colleagues Russ Roberts, a professor of economics at George Mason University, brilliantly deconstructs this logic and points out why technology doesn’t destroy jobs:
Somehow, new jobs get created to replace the old ones. Despite losing millions of jobs to technology and to trade, even in a recession we have more total jobs than we did when the steel and auto and telephone and food industries had a lot more workers and a lot fewer machines.
Why do new jobs get created? When it gets cheaper to make food and clothing, there are more resources and people available to create new products that didn’t exist before. Fifty years ago, the computer industry was tiny. It was able to expand because we no longer had to have so many workers connecting telephone calls. So many job descriptions exist today that didn’t even exist 15 or 20 years ago. That’s only possible when technology makes workers more productive.
Read the whole thing. Great stuff.
Read Part II here
In February, Congress passed the Obama Administration’s “(Five Year) National Broadband Plan,” part of the so-called “Stimulus.” (As economist Russ Roberts put it, government “stimulus” is “like taking a bucket of water from the deep end of a pool and dumping it into the shallow end.”) The Plan transfers $7.2 billion from taxpayers to broadband providers in subsides to promote broadband build-out. More than 10,000 comments have been filed on the plan. Once you get past the constitutional nicety of whether Congress has the power to subsidize “internal improvements” like broadband (it doesn’t), you might wonder just how well your money will be spent by all these techno-supplicants for the latest craze in corporate welfare.
The good news is that these comments are available online. Hurray for transparency! The bad news is that…
they’re available online—specifically on the FCC’s Electronic Comments Filing System (ECFS). Anyone who’s used the web more recently than 1998 will cringe the first time they try to use ECFS to find anything, as Jerry has noted. Apart from the cumbersome, highly unintuitive interface, the problem is that there’s no way to search the text of comments
! You can only search pre-defined fields like like “law firm,” and if you don’t enter a value in precisely the right way, you get nada.
Bill Cline, the Chief of the Reference Information Center for the FCC’s Consumer & Governmental Affairs Bureau tries hard to put the best face on this farce of e-government, explaining:
Continue reading →
Two weeks ago, I mentioned here that John Stuart Mill’s On Liberty celebrated its 150th anniversary this year. This year also marks the anniversary of another classic text: Adam Smith’s The Theory of Moral Sentiments, which turns 250 this year. Although Smith will always be most closely associated with The Wealth of Nations, some Smith fans (like me) consider The Theory of Moral Sentiments to be his real masterpiece. First published in 1759, the book is a far more robust theory of life, ethics, human relations, and justice. Indeed, as Dan Klein and Russ Roberts of George Mason University note in this excellent podcast, The Wealth of Nations is best viewed as an installment in, or an extension of, a much larger project that Smith really brought together more holistically in Theory of Moral Sentiments. [Note: Klein and Roberts have an amazing 6-part podcast series celebrating the 250th anniversary of the book, all of which can be found here].
Rarely has any moral philosopher gotten to his point quicker — namely in the very first line of the first page of the text — than Smith did in
Theory of Moral Sentiments. Smith wanted to show that man is both self-regarding and other-regarding, and that these seemingly contradictory notions were actually quite complementary. In other words, “self-interest” (properly understood) and empathy for others could be reconciled:
How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortunes of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it. Of this kind is pity or compassion, the emotion we feel for the misery of others, when we either see it, or are made to conceive it in a very lively manner. That we often derive sorrow from the sorrows of others, is a matter of fact too obvious to require any instances to prove it; for this sentiment, like all the other original passions of human nature, is by no means confined to the virtuous or the humane, though they perhaps may feel it with the most exquisite sensibility. The greatest ruffian, the most hardened violator of the laws of society, is not altogether without it. [Book I, Chap. 1]
These opening lines make it clear why those who have criticized Smith’s theories as based on nothing more that greed or selfishness simply don’t know what they are talking about. Continue reading →
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.