I had just come across the following article, Is Techology to Blame for Jobless Recovery? and it is complete and utter bull. Here are the following problems that I have with this article:
1. It is afraid that computers like watson will take over the role of a doctor. While yes, it may replace the need of doctors (perhaps with such a service, you may only need 3 doctors instead of 5?) the doctor still needs to examine the patient and input the values into the “machine” to get a correct diagnosis. Perhaps this role should be done by a nurse, but you still need the same amount of staff in order to perform this roles. Also, watson cost a boat load of money, I don’t see hospitals and doctor offices investing in the technology TODAY, which is what the article is suggesting.
2. The claim is that businesses are investing in technology over people’s jobs. This could be possible, but I know that technology spending was down in 2007-2009 so that means there was a lot of antiquated systems that need to be replaced. What happens is that if companies don’t stay up to date with these software, they can tend to purchase new hardware and software costs that would not have occurred if they kept up to date.
Now, this is not saying that new technology doesn’t replace jobs. Systems like SAP replace accountants all the time. With that said, there are always people that need to run the reports and keep the systems up to date. This would just be a shift in the job demand, moreover, then the jobs not existing in the first place.
3. The article almost bashes the companies for making a profit rather than hiring new employees. Companies need to make profits and pay off debts from the bad times before they can re-invest into the workforce. Companies cannot operate their employees at 110% forever, but they need to get themselves out of the red in order to ensure that they continue to make profits when hiring new people. If the companies are making money, the jobs will occur eventually.