AUTOMATION OF ECONOMIES

AUTOMATION OF ECONOMIES

Modernization, industrialization and automation are these changes going to prove fatal to the capitalist economies or is going to boost the growth of the economies?

Automation is a widely heard word in the big and heavy structured economies from past few years. A propaganda that is positioning fear into the governments, corporations and even people regarding their capital system of economy and even the employment which are going to be drastically effected by the “automation”.

What is “automation”? Are we creating a “self-destruct” button? What are its effects of the capitalist economy?  How is it going to affect the employment structure? Are the economies going to collapse? These are the questions that are haunting every economist.  Job creation has already become challenging mare and mare workers and employees are being displaced.“Luddite fallacy” the great theory of technological unemployment is onrushing wave. With every technological change made in any industry or country a large number of workers are displaced, we have seen that in the past in US millions of workers in agricultural field were displaced due to technological advancement over few decades, but in contrast to our thoughts the unemployment dint last long, they were absorbed into different sectors as industrial growth. But now the industries are also being automated and the terrifying fact is that every industry might have only their top management working remaining all is done by “ARTIFICIAL INTELLIGENCE”. Scary isn’t it?

If it helps there is a second thought, that’s scary and a probable scenario, but there is a catch here the graph representing human capability and computer technology if the two lines intersect that might represents stagnation in mobility of economy, and that i mean literally, because zero work force and full-fledged technology never comes into existence. When the world scenario starts moving into that dangerous warp there are other dynamic forces like political, social and economic powers which come into play.

Imagine a country or world completely depending on technology that is like seeing MATRIX movie in reality. That’s a far cry. PESTEL is a very major force that drives any industry, country and even law, until and unless all the political systems crash in the world all the economic structure crumble down this notion will not fit into any structure. Yes, US are driven towards it, automation and yes the downfall of US is for sure and that will be a live example for the whole world. The most powerful country getting destroyed from within. No country or even a single company is mad enough to automate completely. If that happens, law and political parties come into play and impose rules on them saying "for example: 30% automation only".

"Automation" theory contradicts the "Economic Shift" theory. Let us think about the economic shift from west to east which we all know is inevitable and we have been seeing the beginning of it, so if the shift happens India, China and Japan the three major economies of east have that capability of automation?  Japan does have that capacity but Japanese are work driven people a company in Japan will be ready to pay millions instead of removing a few employees and India and China the question of automation doesn’t arise due to the socio-political scenario.

So automation is still a far off cry and if that begins it'll begin will a limitation. But if the greed increases, who can predict human tendency. 

"THE WORST IS YET TO COME"