Monday, March 7, 2011

Are unions the answer for new American jobs?


      This is a discussion about Gaius Publius commentary on Paul Krugman's editorial on "The real answer to new American jobs." In a time when jobs and unemployment are the center of debate, everyone has a solution. Publius' intended audience are  white collar workers and  union members. Krugman's argument is that computers are going to replace anyone who is not a CEO or a blue collar worker. He says that Unions are the answer for creating jobs in the US.  Unfortunately , unions will not prevent business from going overseas for cheap labor.How exactly do unions create jobs anyway?  Krugman claims the software will change the workforce, but maybe that is a good thing, we should look into this comparative advantage thing more closely.   However we may not be there yet:  “Some specialists acknowledge that the technology has limits. “The documents that the process kicks out still have to be read by someone,” said Herbert L. Roitblat of OrcaTec, a consulting firm in Atlanta."   Someone still has to enter the files into a database for the program to sort and someone still has to decipher the output.

      Part of Krugman's argument is that education does not guarantee a good paying job and thus should not be pursued? This is a valid concern. Due to the rising price of education, more students are buried under student loan debt with little guarantee of return on investment. However one needs to be careful to say that education is not a solution, consider how much harder it is to get a decent job if you don't have a degree. There will always be a demand for highly educated workers but in our global economy it may be shortsighted to assume that an education should equate to a job in the US.

        Jared Diamond theorized in his book Guns Germs and Steel that as hunter gatherers came together they formed villages and if theses villagers basic needs were sustained by farming and cooperation, then individuals were free to  become full time farmers, soldiers or politicians.  They were freed from the shackles of hunting and gathering food daily.  Perhaps we are on the cusp of  such a societal evolution in that many of the tasks that require human calculation will be turned over to programs in order for humans to focus on higher level problems.  The singularity is around the corner...  

        Unions can help generate higher wages and better working conditions for members, but unions can have a  bureaucracy and can stifle innovation
We can't forget what unions have done for the American worker over the last 100 years but to say that Unions are the only way for America to succeed is misleading.

No comments:

Post a Comment