Category Archives: jobs

Foolish

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Bill Gates, the co-founder of  Microsoft and world’s richest man, said in an interview Friday that robots  that steal human jobs should pay their fair share of taxes.

He said, and he was serious,

Right now, the human worker who does, say, $50,000 worth of work in a factory, that income is taxed and you get income tax, Social Security tax, all those things.  If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level.

No, I wouldn’t.  Leave aside his blithe assumption that that money is the government’s in the first place, and not the property of the human worker.  Leave aside his blithe assumption that the government needs the money.  Leave aside his blithe assumption that a human worker should be taxed for a stranger’s current retirement and medical needs (Gates omitted the Medicare-related taxes also collected) instead of his own future retirement and medical needs.  Leave aside Gates’ omission of the employer’s payroll taxes on that human worker’s labor.

The whole point of automation is to hold down costs, is to be competitive with other companies, and an outcome of all of this is lower costs to the consumers who are using—in some cases dependent on—the goods and services being sold.

Recode, citing a McKinsey report, said that 50% of jobs performed by humans are vulnerable to robots, which could result in the loss of about $2.7 trillion in the US alone.

Loss to whom?  One “loss” is to government revenues—but there is no submission of a justification for Government’s need for the revenue.  Another loss seems more real: to the private sector.  The money isn’t lost, though, it’s misallocated—to unnecessarily high cost labor, which translates into unnecessarily high cost to consumers.

Besides—the robots already pay taxes, at every company along the production path that leads to a completed robot: costs of acquisition of that stage’s components—from the mine on up—and income tax on their part of that stage company’s income, and on the final assembly’s cost allocation in the production of the final good or service.

Human workers don’t pay much of this at all.  This is just another backdoor effort to prop labor costs artificially above the value of the labor.  And it’s foolish.

A Terrible Nightmare for Bureaucrats

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Here’s Joe Pizarchik, ex- Office of Surface Mining Reclamation and Enforcement Director in the Interior Department, for all of the Obama years:

My biggest disappointment is a majority in Congress ignored the will of the people.  They ignored the interests of the people in coal country, they ignored the law and they put corporate money ahead of all that.

Wow.  Just wow.  Because the people, exercising their will in electing the majority of Congress—all the members of Congress, come to that, every single one of them—had their will ignored when the majority that they elected executed on their will by rejecting a bad regulation.

Again, wow.  Just wow.  Because that Congress, in executing on the will of the people by acting within a previously enacted law and rescinding a regulation, ignored the law.

A third time, wow.  Just wow.  Because Congress, in acting on that Congress-passed law and rescinding a coal job-killing regulation, acted against the interests of the people in coal country, people whose livelihoods were threatened by that regulation.

Of course Pizarchik worked for seven years—seven years!—on his regulation, only to have Congress get rid of it.  That’s not fair!

Now he’s working on a replacement rule for submittal under a future President:

I believe there’s a good chance that, in a legal challenge, that a court will overturn Congress’ actions here as an unconstitutional usurpation of the executive branch’s powers[.]

Never mind that the Executive Branch’s rule-making authority is solely a delegation from Congress and that the Executive Branch is required to remain wholly within the scope of the law which its regulation is intended to implement.

Plainly, eighth-grade civics was not a safe space for Pizarchik.

And there’s this pit of worry: Ross Eisenbrey, Policy Director in OSHA from 1999 to 2001 asks

Why would an administration risk putting all the years of effort into a rulemaking, all the political capital to do it, knowing somebody could take the rule to district court and have it blocked in an instant because the judge says it’s similar enough?

Why, indeed?  It is to hope.

 

h/t Don Surber

A National Parental Leave Policy

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AEI has a piece on this; unfortunately, their piece proceeds from some false premises.

Developing a National Paid Parental Leave Policy

It’s interesting that folks of a bent proceed from such claims. They always decline to establish, for instance, that we need a national policy for parental leave. It’s such a widespread failure that I have to conclude it’s deliberately Alinsky-esque in its attempt to control the discussion.

The United States is one of two countries without a national policy providing new mothers with rights to paid leave following the birth of a child.

And then this non sequitur keeps getting dragged out as if it matters that we don’t look like the rest of the world. Never mind that, more substantively, we aren’t like the rest of the world, so there’s no reason we should look like the rest. There aren’t very many federated republics extant.

At present, we simply do not know what the ideal leave program for the US would look like.

Yes we do. It’s what each of the 50 States in our republic think one would look like–it’s what the citizens of each of those States think is best for themselves. Full stop.

Some Context For The Latest Headline Unemployment Rate

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Here are some graphs, via The Wall Street Journal, that show why that headline rate of 4.6% isn’t all it’s cracked up to be.outdidelaborforce

The WSJ emphasized two points here, aside from the fact that this age group being outside the labor force has nothing to do with retirement or being in school:

First, a small but ever growing minority of 25-54-year-old men are no longer in the labor force. In the 1960s, just 2.7% of men that age were outside the labor force. As of November, it’s 11.5%.

Second, from the 1960s to late 1990s, 25-54-year-old women became less and less likely to be outside the labor force (this is primarily driven by a decline of stay-at-home mothers, as more women took jobs). But in the last 15 years, the share of women outside the labor force has been growing too. It’s now up to 25.3% from 23.2% in November of 2000 just before George W. Bush took office.

Which might contribute to and why, perhaps, there’s so little wage growth, as shown in this graph:wagegrowth

There’s just too much slack in the population’s ability to work.

Federal Green Expenditures

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Watts Up With That has some ideas for budget cutting in the next administration.  Or, actually, these ideas come from Salon (!) via WUWT (never mind that cutting isn’t what Salon meant).

  • Energy Department

2017 climate-related budget: $8.5 billion

  • Interior Department

2017 climate-related budget: $1.1 billion

  • State Department

2017 climate-related budget: $984 million

  • NASA

2017 climate-related budget: $1.9 billion

  • Environmental Protection Agency

2017 climate-related budget: $1.1 billion

  • National Oceanic and Atmospheric Administration

2017 climate-related research and development: $190 million

That works out to $13.8 billion of “useless waste.”  Yes, indeedy.

While we’re about it, let’s cut the “green” subsidies, too.  Every single one of them.  The fossil fuel (coal, oil, and gas) enterprises don’t need the $3-$5 billion (depending on who gets asked) in subsidies they get, either.  That’s yet more budget cutting.19+, although fossil fuels get much less than the “green” money being tossed down rat holes.