Implications of the Replacement of Blue-collar Jobs
How technological change will impact economics and politics
Our world is on the verge of historically momentous changes. Technological advances will have all-encompassing implications for almost all human endeavors, from manufacturing and transportation to healthcare, education, and communication. Emerging technologies and their implementation will have a profound impact on the current political system, society, and the job market. The advent of AI and robotics will both pose unprecedented challenges and offer an opportunity to reap tremendous economic and social benefits.
It has become conventional wisdom among economists to think that due to the advancement of AI and robotics blue-collar jobs will be mostly eliminated from the economy. Experts differ on the exact consequences of such a shift, and it is worth exploring both positive and negative sides of the current realignment to gain a better understanding of monumental shifts occurring in our society.
Even though in the short run lost jobs will be offset by the creation of new ones, over the longer term (20–30 years) technically it will be possible to automate most of the jobs.
Foremost, as a result of the elimination of blue-collar jobs, the economies of developed countries will achieve previously unimaginable levels of productivity, for AI algorithms and automated manufacturing are much better at performing tasks than humans.
Increased throughput will make goods and services cheaper, thereby leaving consumers with greater disposable income which they will then use to purchase more products, leading to the growth in consumption and demand, which will ultimately facilitate the creation of new jobs and economic growth.
According to PwC’s analysis, by 2030 gains from AI implementation will be around…