Can raising the minimum wage standard lift poverty? Robot era will not be like this

[Netease Smart News, August 17 news] The minimum wage is a controversial economic problem, but a new study found that raising the minimum wage may have a knock-on effect on the economy, and this reason was difficult to predict a few years ago. Because we have entered the robot era.


The federal minimum wage is US$7.25 per hour, and in some states, the average hourly wage is higher. A 2015 study of the Institute of Economic Policy shows that an ordinary American family—parents and two children—is needed. It is almost impossible to raise the minimum wage. Because of this, workers across the country want higher wages, but a new study released on Tuesday showed that the higher the minimum wage, the more likely the jobs of low-income workers are replaced by robots or automated systems.

"Overall, we have found that the increase in the minimum wage is advancing the adoption of technology," said Grace 燣ordan, a professor at the London School of Economics and the author of the study. “I predict that in the future, this trend will spread to other areas of work. People no longer care so much about who provided the service. The potential for technological advancement is enormous—for example, delivery drivers, taxi drivers, bricklayers, and adjustments. The sommelier and waiter."

A study released by the National Bureau of Economic Research on Tuesday found that for every dollar increase in the minimum wage, the economy loses 0.43% of jobs. These jobs can be classified as "automated work" - or tasks that robots can do. . The researchers analyzed the census data from 1980 to 2015 and studied the ratio of automation and unemployment compared with the minimum wage, and came to a less than good conclusion. Although 0.43% did not have a dramatic association, this figure applies to the rapid increase in the number of laborers, a figure that reaches millions of people across the country. As robots learn to perform more complex tasks, workers in these jobs feel stress.

The work described by Lordan is already very dangerous. She said: "Until 2025, the work of low-skilled workers will be very different." This is in line with a report from the White House in 2016 that shows that under certain circumstances, hourly earnings are less than 20 percent. Of the U.S. employees, as many as 83% of people may lose their jobs due to automation.


Raising the minimum wage actually speeds up the loss of automated jobs. If the workplace has to pay higher salaries to employees, they are more likely to use robots instead of humans, and these robots do not need to pay salaries at all. Attempts to resist or deny the impact of automation are futile, but the results of the study clearly show that if more wages are provided to raise the living standards of low-paid workers, they will not be adopted.

"I don't mean that we won't be automated," Lordan said. “However, for those who will lose their jobs, accelerating application automation without considering their situation may ultimately further deteriorate the standard of living of vulnerable groups that are difficult to train – just like those older Skilled workers."

Industry insiders also know this. In January this year, Jeff燘urnstein, President of the American Association of Advanced Automation, told Inverse at the US's largest industrial robots show, Automation, that they have given substantial support to projects that help American workers keep working in the era of automation.


“You will see that more energy will be focused on the workforce, ongoing training, and efforts to better define what these jobs are and allow people to leave enough cycles in choosing their career.” He believes that automation will actually increase work Opportunity, because robots do physical work does not necessarily mean that these robots do not require human management personnel.

The cost of retraining projects is high, and it is unclear who will pay for these projects. A report in the New York Times in February this year pointed out a core paradox: businesses cannot find employees with the required skills, and employees cannot find jobs that require their own skills. Government and private organizations (Burnstein, for example, in Ramtech, Ohio) have provided a project network to train workers once again. But as the New York Times Magazine pointed out, the future of these projects is often tied to political forces such as budgetary and administrative actions, and navigating through redundant or complex options can be confusing.

In the political realm, Trump's treasury secretary Steven 燤nuchin is dismissive of the reality of automation-related unemployment (his opponents say he "lost contact") but also accepts this reality. With Trump’s drastic budget cuts, professional training in the robotics era may not include it in the list of federal priorities.

Raising the minimum wage may help some families temporarily get rid of poverty, but there is no doubt that - in the end, the machines will replace their jobs. However, the hope is that these robots are still quite incompetent for some time. (From: Inverse 犠髡撸籂 Jack hot rosbie compilation: NetEase see the smart compiler platform 犐笮 # 筱 imone)

Pay attention to NetEase smart public number (smartman163), get the latest report of artificial intelligence industry.

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