Rick Richardson's Views On Technology
  • Home
  • Blog

The Argument for A Robot Tax

7/14/2019

0 Comments

 
Picture
One of the highlights of MIT’s Emtech Next Conference in June was a debate on whether we should tax robots. We heavily tax human workers, so why not the machines that replace them? Then, goes the theory, that tax money could help provide training or benefits for workers who’ve lost their jobs to automation.

Ryan Abbott, a law professor at Surrey University, presented a convincing case for such a tax– or, more precisely, for removing the tax incentives that favor automation over human labor. Many business decisions to automate processes, argued Abbott, are driven by these tax advantages, not because the robots are more productive. If automation is more efficient, suggested Abbott, let that be the reason businesses decide to use it – not some tax break.

The counter-arguments from Ryan Avent, economics columnist at the Economist, were that taxes (or ending tax breaks) would slow innovation, and, in any case, there is little economic evidence that robots are taking over jobs. While these points appear to be less convincing, a robot tax alone won’t solve the lack of good jobs. But removing the financial incentives that favor automation over humans will at least create a level playing field.

Even more erroneous is the argument that a robot tax is a slippery slope: are they going to tax my Roomba or smart toaster next? Somehow, we manage to tax labor, and yet you can still mow your lawn and clean your house without paying the government.

Alas, the Emtech Next attendees disagreed, with 70% voting against the robot tax after hearing the debate.
One of the recurring themes at the conference was that businesses could better exploit automation and AI not just for their own efficiency, but to improve productivity and grow the economy as a whole. How? A pair of engineers, Meera Sampath at the State University of New York and Pramod P. Khargonekar at the University of California, Irvine, presented their plan for “socially responsible automation,” which starts with getting technologists to think harder about how their creations will actually be used and how those uses can benefit workers and society.

A shout-out to workers: Too often in these discussions of how automation and AI are affecting jobs, the voices of workers themselves are absent. MIT’s Thomas Kochan, speaking at the conference, at least provided a reminder to listen to such views, even in the early stages of product designs, and to involve them more in automation decisions. And, he argued, companies need to take the time to give their existing workforce the skills and training necessary to integrate them with changes in automation better.

Let’s admit it, every time we hear the word “co-bot” we cringe. Yes, there have been remarkable advances in robotics over the last decade that allow these machines to more safely and comfortably work alongside people and do more human-like tasks. And, yes, we know the promise is that, by taking over mundane tasks, these robots will free people up to do more interesting and, hopefully, productive ones.

But that’s a business decision that too often companies are not taking; instead, many are simply replacing their workers. If robots do 20% of the tasks that a worker was doing, then you need 20% fewer people to get the job done.

It’s become increasingly clear to economists that this one reason we’re facing a crisis: wages are flat, and job opportunities are limited for many workers.

MIT economist Daron Acemoglu blames this on what he calls “so-so” automation and technologies. Advances like automation should be a boon to productivity, but productivity growth has been sluggish for more than a decade. That, says Acemoglu, is because too often companies are automating jobs even when the machines are not more productive, because of the tax mentioned above distortions and a general enthusiasm for robots. So, you have a double whammy; not only are robots replacing workers, they’re not particularly adept at growing the economy.

The way out is to create new, productive tasks for the workers replaced by the automation. (That’s what happened in the past). And that’s where AI could be useful. Examples are not that hard to imagine. For instance, if you free up healthcare workers, such as radiologists and nurses, from routine tasks, they could use AI systems to collect and analyze far more patient data, expanding their capabilities and giving them new ways to advise and treat patients. Acemoglu cites similar examples existing in education and manufacturing.
​
But, and this is key, Acemoglu warns that this won’t necessarily happen on its own. You can’t leave this up to the markets or the technologists. We need to pursue this goal deliberately.

0 Comments



Leave a Reply.

    Author

    Rick Richardson, CPA, CITP, CGMA

    Rick is the editor of the weekly newsletter, Technology This Week. You can subscribe to it by visiting the website.

    Rick is also the Managing Partner of Richardson Media & Technologies, LLC. Prior to forming his current company, he had a 28-year career in technology with Ernst & Young, the last twelve years of which he served as National Director of Technology.

    Mr. Richardson has been named to the "Technology 100"- the annual honors list of the 100 key achievers in technology in America. He has also been honored by the American Institute of CPAs with two Lifetime Achievement awards and a Special Career Recognition Award for his contributions to the profession in the field of technology.

    In 2012, Rick was inducted into the Accounting Hall of Fame by CPA Practice Advisor Magazine. He has also been named to the 100 most influential individuals in the accounting profession in America by Accounting Today magazine.

    In 2017, Rick was inducted as a Marquis Who’s Who Lifetime Achiever, a registry of professionals who have excelled in their fields for many years and achieved greatness in their industry.

    He is a sought after speaker around the world, providing his annual forecast of future technology trends to thousands of business executives, professionals, community leaders, educators and students.

    Picture
    Picture
    Picture
    Picture
    Picture

    Archives

    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015

    Categories

    All
    Artificial Intelligence
    Audit
    Back Up
    Back-Up
    Blockchain
    Climate
    Cloud
    Collaboration
    Communication
    Coronavirus
    COVID 19
    COVID-19
    Digital Assistant
    Display
    Drone
    Edge Computing
    Education
    Enterprise
    Hardware
    Home Automation
    Internet Of Things
    Law
    Medicine
    Metaverse
    Mobile
    Mobile Payments
    Open Source
    Personalization
    Power
    Privacy
    Quantum Computing
    Remote Work
    Retail
    Robotics
    Security
    Software
    Taxes
    Transportation
    Wearables
    Wi Fi
    Wi-Fi

    RSS Feed

    View my profile on LinkedIn
Powered by Create your own unique website with customizable templates.