People Over Robots

The Global Economy Needs Immigration Before Automation

by Lant Pritchett

We live in a technological age — or so we are told. Machines promise to transform every facet of human life: robots will staff factory floors, driverless cars will rule the road, and artificial intelligence will govern weapons systems. Politicians and analysts fret over the consequences of such advances, worrying about the damage that will be done to industries and individuals. Governments, they argue, must help manage the costs of progress. These conversations almost always treat technological change as something to be adapted to, as if it were a force of nature, barreling inexorably into the staid conventions and assumptions of modern life. The pace of change seems irrepressible; new technologies will remake societies. All people can do is figure out how best to cope.

Nowhere is this outlook more apparent than in the discussion of automation and its impact on jobs. My local grocery store in rural Utah has hung, with no apparent sense of irony, a sign proclaiming the company’s support for U.S. workers above a self-checkout machine, a device that uses technology to replace the labor of an employee with the labor of the customer. Much ink has been spilled in explaining how automation threatens some low-skilled workers and what governments should do to help: for instance, countries could support retraining initiatives, revamp education systems, or invest in redistributive schemes. At the same time, many governments hope that machines can save their economies from the consequences of demographic decline and aging. Techno-optimists argue that the United States and many other wealthy countries need automation to make up for dwindling working-age populations and looming gaps in workforces. Happily, they suggest, the advance of technology will sweep aside the troubles of demography.

But these debates and arguments miss a very simple point. As seismic as it may seem, technological change is not a natural force but the work of human beings. Of course, technology has radically improved human lives: no one wants to live without electricity, flush toilets, or (in Utah) central heating. In other cases, however, it is new policies, and not new technologies, that societies need most.

Automation is often a solution in search of a problem. It is a choice people have made, not an inevitability and certainly not a necessity. For instance, the United States faces a scarcity of truck drivers. The American Trucking Association has estimated that in 2021 there were 80,000 fewer drivers than the total needed and that, given the age of current drivers, over a million new ones will have to be recruited in the coming decade. To deal with this deficit, many tech moguls, including Amazon founder Jeff Bezos, have invested in the research and development of self-driving vehicles, technology that would reduce the demand for drivers. For Bezos, such technology makes corporate financial sense; Amazon relies on low shipping costs to keep its prices down. But it does not make wider economic sense because millions of people would be happy to drive trucks in the United States — they just need to be allowed to work in the country.

There is no global scarcity of people who would like to be long-haul truck drivers in the United States, where the median wage for such work is $23 per hour. In the developing world, truck drivers make

Automation is not inevitable; it is a choice.