What is “Post-Labor Economics”? A Gentle Introduction
Quick Intro
The past decade has seen remarkable advances in artificial intelligence, robotics, and automation software. Self-driving cars are already navigating streets in dozens of cities. Stores now utilize automated checkout and inventory management. Processes from manufacturing to legal research to healthcare diagnostics are increasingly handled by machines.
And then Generative AI landed!
This acceleration prompts an examination of what a “post-labor economy” might look like — one where human employment is no longer the primary means of production and economic distribution. In this article, we will explore the principles and policy implications of optimizing an economy for technological productivity rather than human labor.
Core Principles
The foundational premise of a post-labor economy is liberating human potential from the requirement of employment. Rather than treating human jobs and livelihoods as an end unto themselves, the priority becomes freeing people from such constraints through technology.
The greatest constraint on productivity is the need for human labor. We need to remove this bottleneck.
The main objective is progressively reducing society’s dependency on human labor across all sectors. This involves incentivizing businesses to optimize for technological productivity rather than maximizing employment. We also need to enable governments and universities to contribute to this outcome. It means leveraging automation, robotics, AI, and sophisticated software to drive economic production.
This paradigm shift could enable a future where jobs are entirely voluntary. Fewer hours spent on obligatory work means more time engaged in leisure, creativity, sport, the arts, sciences, caregiving and human connections.
It also means trillions upon trillions more dollars of GDP.
The role of technology in Post-Labor Economics is to drive down prices of all goods services with AI. We need to develop AI and automation to the point where it is better, faster, and cheaper than human labor.
Redistributing Economic Gains
With less income derived directly from human labor, redistributing the productivity gains from automation becomes essential for sustaining equitable prosperity.
Forms of universal basic income (UBI) adapted from unemployment insurance models can provide households with regular funds decoupled from traditional work. Negative income tax credits can be expanded to supplement UBI, incrementally reducing dependency on employment. Taxes levied directly on the value generated by AI and automated systems can supply additional redistribution funding.
Strengthening employee stock ownership plans can enable workers to benefit from their companies’ increased technological productivity. For those nearing retirement age, pension benefits can be enhanced to enable exit from the workforce earlier. We may end up seeing entirely different ownership models over the engines of productivity.
Part of the funding will need to come from greatly expanded wealth and property taxes, as well as expanded VAT taxes. A mix of approaches will be needed based on evolving conditions, but the principle of redistributing gains from automated production underpins this economic model.
Adapting the Social Contract
Transitioning to a post-labor economy requires fundamentally adapting the social contract between individuals, businesses, and governments.
For businesses, incentives must shift from maximizing human employment towards accelerating automation. Severance packages, job transition programs, and retraining opportunities can help mitigate workforce disruption. But the corporation’s relationship with human workers would evolve to prioritize technological optimization. We want businesses to continue serving as the engines of productivity — providing goods and services in a free market environment. But we want them to do it better, faster, and cheaper with AI.
For individuals, the pursuit of passion projects, creative ventures, entrepreneurship, self-actualization and human connectedness can supersede job-centric goals. Educational systems will need to equip learners across disciplines with adaptable skills rather than narrow career training. Lifelong learning opportunities can enable people to continuously expand their capabilities. Furthermore, we will have to change our relationships towards life, meaning, mission, and social value.
Decoupling healthcare access from employers can free people to pursue personalized paths. Sabbaticals and passive income generation can become more socially acceptable than the continual grind of full-time jobs. A sense of purpose may stem more from community, families, or contributions to collaborative projects rather than corporate titles.
Government’s role will involve regulatory changes to incentivize automation. Policymakers will need to administer redistribution programs and update safety nets. Taxes may shift towards capital gains, externalities, and automated production rather than human income. This could also include research grants, tax breaks, and innovation-friendly legislation paired with redistribution.
This new Social Contract will represent a fundamental shift of power dynamics in society today. That means that we will need to strengthen democratic institutions to offset the loss of worker power.
Utilizing Existing Policy Frameworks
Numerous policy frameworks already in place today can pave the transition to a post-labor economy.
For example, Social Security and Medicare systems could be adapted into universal programs delinked from lifetime human employment. Mainstreaming universal basic income on a limited scale can demonstrate viability. Tax incentives can encourage companies to automate workflows rather than hire more staff.
Public and private funding for education and training could prioritize disciplines like philosophy, history, art, music, psychology, and languages given their value in a post-labor society. STEM subjects would remain essential for technological innovation.
Shorter standard work weeks could incrementally reduce dependency on income from human labor. Digital infrastructure and accessibility reforms can enable entrepreneurship, remote collaboration, and automation adoption.
Transition Challenges
Despite immense promise, this economic paradigm shift certainly carries risks and difficulties.
Displaced workers would need robust transitional support, including retraining programs, career counseling, mental health access, and UBI during periods of unemployment. Not everyone may easily adapt to a world without traditional jobs providing structure and purpose.
Healthcare costs may rise if decoupled from employer-subsidized plans, necessitating cost control reforms. Consumer demand is still required to sustain businesses, so less disposable income from stable jobs could impact spending.
Strong safety nets and close monitoring of outcomes will be critical during the post-labor transition. Adaptive policy changes and new creative solutions must continually emerge to smooth disruption points.
Resistance to this new narrative, due to skepticism and fear, will be a major hurdle to cross. I am hoping that this coherent narrative around Post-Labor Economics will help build consensus and establish a new Common Dream.
Path Forward
So what steps can guide the transition towards this technology-driven economic model?
Public-private partnerships can fund displaced worker, retraining, and transitional support programs. Academic think tanks and policy panels can research optimal post-labor principles and policy frameworks.
Pilot programs around basic income, healthcare access, and education subsidies should be run to gather data. Vocational guidance can help connect people to fulfilling opportunities suited to a post-labor world.
Global cooperation and sharing of best practices will be invaluable given these disruptions transcend borders. With thoughtful implementation and a focus on equitable outcomes, a post-labor economy could potentially leapfrog today’s abundance barriers.
Conclusion
The post-labor economy foregrounds technology as the engine of material abundance, freeing humanity to direct energies towards deeper fulfillments beyond employment. But this transition requires carefully rethinking economics, social contracts, education, and the role of government.
There will be many questions and unknowns as existing paradigms shift. But the rapid pace of automation necessitates beginning this discussion now. In the end, the goal is greater societal happiness, fulfillment, and human potential. If post-labor principles can progress society in that direction, the trials of transition may prove worthwhile.
There are always risks inherent in pivots of this scale. But the possibilities are too profound not to earnestly explore. What does seem increasingly clear is that amidst accelerating technology, maintaining the status quo is unlikely to be sustainable. Some form of economic evolution is imperative. Post-labor principles represent one potentially promising path forward.
Post-Labor Economics in a Nutshell
Here’s a brief recap, the cliff’s notes version:
Objectives & Principles
- Systematically remove the need for human labor with technology.
- Develop technology to be better, cheaper, faster than human labor.
- Renegotiate the social contract; the relationship between individuals, businesses, and governments will change as power dynamics shift.
- Redistribute excess wealth with existing policies and mechanisms; refine them over time with iterative improvements.
