What’s Happening to Jobs? (The War on Normal People)

Andrew Yang, in The War on Normal People, recounts that after his early career success, he eventually became disillusioned with the state of the country, witnessing firsthand the economic decline and despair in many American cities and communities. This led them to question the effectiveness of their work and the broader entrepreneurship and nonprofit sectors in addressing these deep-rooted issues.

Yang delves into research and finds alarming trends, such as a significant decline in new business formation and the looming threat of automation, which is set to eliminate jobs for many vulnerable Americans across various regions. This realization prompted the author to reflect on their role and the need for more substantial efforts to revitalize struggling communities and address the root causes of economic stagnation and inequality.

Once, the pillars of American work life stood firm: pensions that promised security in retirement, unions that bargained for workers’ rights, and employment relationships that lasted a lifetime. These foundations crumbled as corporations shifted focus towards maximizing shareholder value and inflating CEO paychecks. Financial deregulation turbocharged the financial sector’s growth, overshadowing manufacturing and traditional banking.

The quest for cheaper labor led to outsourcing and offshoring millions of jobs, while automation began to replace human hands in factories, severing the link between productivity and wages. This era ushered in a stark divide, concentrating wealth in the hands of the few; the top 1% and 20% saw their coffers swell, leaving the middle class to tread water in a stagnant wage pool. Technology and new business models enabled companies to swell in valuation without a corresponding increase in job creation. Each recession since the dawn of the 1980s has deepened these wounds, erasing jobs and extending the road to recovery, with the early 21st century marking a decade of job growth stagnation. Today’s corporate giants operate with a fraction of the workforce that their predecessors required, despite their mammoth valuations.

This transformation across decades has not just reshaped corporate America; it has fundamentally altered the landscape of opportunity and financial well-being for the average American amidst the relentless march of technology.

Turning to what defines the “average” American today, the portrait is starkly different from the prosperity narrative often painted. Educational achievements hover around some college experience, with a bachelor’s degree gracing less than a third of the population. The median personal income barely crosses $30,000, with the majority earning under $50,000 annually. Wealth, when stripped of home equity, dwindles to a mere few thousand dollars for many, leaving nearly 60% vulnerable to financial emergencies costing as little as $500.

Urban living is the exception, not the norm, with a significant majority residing in suburban or rural settings. The racial wealth gap remains a chasm, with white and Asian households far outpacing their Black and Hispanic counterparts. Stock ownership, a marker of financial engagement and potential prosperity, is a privilege enjoyed by barely half of the populace, concentrated overwhelmingly among the affluent.

This data sketches a reality far removed from the American Dream for many, characterized by modest educational attainment, modest incomes, precarious financial standing, and a disconnect from the engines of wealth creation.

As we gaze into the future of work, the forecast is unsettling. Nearly half of American jobs teeter on the brink of automation, with office support, retail, food service, and transportation roles facing existential threats from technology’s relentless advance. The digital revolution, while a marvel, casts a long shadow over traditional employment, challenging the adaptability and resilience of workers nationwide. The narrative warns of a looming displacement crisis, where the promise of new technological frontiers clashes with the harsh realities of economic displacement and the search for sustainable livelihoods in an ever-evolving job market.

In the heart of America’s economy, truck driving stands as a cornerstone, employing 3.5 million individuals in a testament to the nation’s relentless demand for goods and services. Yet, beneath the surface, a technological storm brews, poised to reshape this familiar landscape. Between 2000 and 2011, the manufacturing sector witnessed the vanishing of over 5 million jobs, a staggering 80% of which fell to automation’s relentless march. This seismic shift left many without work, their skills and livelihoods rendered obsolete overnight.

Now, the crosshairs of innovation target the realm of truck driving, a domain where self-driving technology promises unparalleled efficiency and cost savings, estimated at $168 billion annually. This leap forward, however, casts a long shadow over the 7 million workers whose livelihoods are intertwined with trucking’s ecosystem, from the bustling truck stops to the cozy diners dotting America’s highways. Despite the skepticism among drivers regarding automation’s immediate impact, industry giants like Tesla forge ahead, envisioning a fleet of autonomous trucks by the early 2020s. This impending transformation sparks concern not only for the 350,000 drivers who own or lease their rigs but also for the potential upheaval in communities reliant on trucking’s economic lifeline.

As we pivot to the white-collar world, the narrative shifts but the theme remains: no job is safe from the digital revolution. Artificial intelligence, once the realm of science fiction, now challenges the sanctity of human creativity and intellect, encroaching upon fields once deemed impervious to automation. From the arts to therapy, AI’s capabilities surge forward, blurring the lines between human and machine. High-skilled professions, the bastions of education and training, face an unprecedented threat. Radiologists, lawyers, accountants, and analysts watch as AI dissects vast datasets with ease, rendering human intervention unnecessary. The finance and insurance sectors, already on the automation bandwagon, hint at a future where algorithms dominate, sidelining human expertise.

Even the most noble of professions, medicine, is not immune. AI’s diagnostic prowess and the precision of robotic-assisted surgeries challenge the traditional role of the physician, suggesting a future where much of medical practice becomes automated. This sweeping transformation across sectors, from the highways of America to the highest echelons of professional service, signals a profound shift in the value of human labor, questioning the role of the workforce in an age where machines can learn, adapt, and outperform the very individuals they were designed to assist.

At the heart of our evolving world lies a profound reflection on the essence of humanity and its place within the realm of work, especially as we stand on the brink of an automation revolution. This contemplation reveals a stark dichotomy: the very qualities that define our humanity—emotion, creativity, the capacity for deep thought—are often undervalued in the workplace, overshadowed by the pursuit of efficiency and profit. The irony is palpable; the careers that reward us most financially demand a suppression of our human essence, yet the absence of work leaves a void, eroding our sense of purpose and well-being.

Despite work’s role in providing income and structure, a global sentiment of disengagement pervades, suggesting that the nature of work itself may not align with true human fulfillment. The limitations inherent to our human condition—our need for rest, our susceptibility to distraction, and the inevitable ebb and flow of life’s demands—fuel the drive towards automation. Yet, paradoxically, the roles that most authentically embody human expression are often the least compensated, laying bare a dissonance between the value ascribed by the market and the intrinsic value we place on human-centric vocations.

This reflection beckons us to question not only our suitability for the mechanized demands of modern work but also whether the construct of work itself serves as a meaningful conduit for our deeper human needs. It underscores an existential rift, where the innate attributes of humanity clash with the mechanistic imperatives of productivity and economic efficiency in our contemporary society.

Turning to the discourse on automation and the specter of technological unemployment, the conversation navigates through a landscape of skepticism and concern. The dismissal of automation’s impact as merely another cycle of technological upheaval fails to grasp the unprecedented scope and velocity of today’s changes, which cut across all sectors with transformative force. The assumption that the labor market will naturally adjust overlooks the tangible barriers faced by displaced workers, particularly those who are older or less skilled, in finding new footholds in an evolving economy.

The hope that new, unforeseen jobs will emerge to replace those lost is tempered by the reality that such roles may be scarce, demand higher qualifications, and lie beyond the reach of those most affected by displacement. Historical attempts at retraining have shown limited success, casting doubt on this as a panacea. Moreover, traditional metrics like the unemployment rate fail to capture the full spectrum of workforce disengagement and underemployment, while arguments citing stagnant productivity growth overlook the nascent stages of disruption still unfolding.

In essence, the dialogue around automation’s threat to employment confronts a series of optimistic assumptions with a sobering analysis of labor market dynamics and the inadequacies of current policy frameworks to navigate the impending wave of automation. This narrative challenges us to rethink our relationship with work, the value of human labor, and the path forward in an age where machines increasingly encroach upon the domain of human endeavor.

"A gilded No is more satisfactory than a dry yes" - Gracian