“Robot Overlords” & 1,000 SMACKERS
Move over, Donald Trump. There’s another outsider that wants your job.
Andrew Yang is running for president in 2020. The serial entrepreneur has been an unknown until recently.
But his message is gaining traction. It’s simple. You get $1,000, and you get $1,000 and you get $1,000, too!
Everyone Loves “Free” Money
It’s a proven vote-getter. And Yang’s campaign revolves around a policy called universal basic income.
Basically, every American between ages 18 and 64 gets a $1,000 payment from Uncle Sam every month.
The way Yang sees it, he’s going to get the country ready for the “AI apocalypse” — when artificial intelligence advances to the point where it replaces massive numbers of jobs.
His message is getting some traction these days, and it echoes the 2016 campaign, to my ears. Trump ran on bringing back American jobs that had been sent overseas, with a particular focus on manufacturing.
The U.S. lost 5.6 million manufacturing jobs between 2000 and 2010, you see.
But the truth is 85% of those jobs disappeared because of automation technology, not jobs shipped overseas, according to a study at the Center for Business and Economic Research at Ball State University.
Yang believes new technologies like robots and artificial intelligence are going to destroy millions of jobs.
The list of vulnerable jobs is wide. In many states, the most common job is truck driving. What happens when self-driving trucks are able to take to the roads?
Touchscreens are already replacing order takers at McDonald’s restaurants across the country. Now the burger giant has spent $300 million on an AI company. The tech will help determine what menu items to show customers based on variables like weather, time, traffic and the like.
Will AI Be a Disaster for American Workers?
It might be a good idea to take a look at history. We’ve been through massive tech disruptions in the past. It used to be that 80–90% of people worked in agriculture.
These days, it’s less than 2%. But those 2% feed far more people. The difference is labor-saving automation. The country didn’t become poorer as a result but far richer instead as workers gravitated toward other fast-growing areas like manufacturing.
In fact, rather than doom and gloom, new technologies like robotics, AI, 5G and more might usher in a golden age of economic growth. By raising productivity for workers, these technologies will also enable new, higher-paying jobs to take the place of the ones that go away.
A lot of the dreary economic performance that took place over the past decade is because we haven’t had enough tech innovation, rather than too much. Productivity growth stagnated compared with prior decades, like the heady days of the 1990s tech boom.
But there are signs that things might be starting to change, with business and industry figuring out how to take the latest technological innovations and turn them into productivity enhancers, raising GDP growth back to its previous long-term trends and growing the economy by leaps and bounds.
Let’s Not Turn on Our Robot Overlords Just Yet
And the best way to benefit from the coming boom is to own them instead, via such great companies as AI- and quantum computing-focused IBM (NYSE: IBM), which just developed an improvement in quantum computing technology.
IBM will soon close its acquisition of open-source software and cloud computing company Red Hat, and the timing appears to be perfect, as the company is recording strong growth.
Looking forward to what else I have on deck for the next few issues…
A company working in one of the most innovative areas of the U.S. economy — biotech.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily