Jobs are being outsourced not just to low-wage countries, but to machines. Machines! We need to rethink how the economy works.
I went to see Andrew Mcafee, Principal Research Scientist MIT, and Tim O'Reilly, Founder & CEO of O'Reilly Media talk about Create More Value Than You Capture. This is what I got out of it.
We’re all part of one machine. The one where we clock in from 9 to 5 or 10 to 7 or however long it takes us to work. We earn money then we spend it on clothes, vacations, old fashioneds and a place to live. We go to sleep at night then we wake up the next day to do it all over again. Exhausting, but worth it, right?
Not quite. This theoretical machine we’re part of has a small problem. The reason a system like this works is because the world needs us to work. There are jobs that need to be done. But what if the world didn’t need us to work? If we didn’t work, then we couldn’t make money, then we couldn’t buy the things that people who do work are making... then more people would be out of work. Almost hurts the head to think about, doesn’t it? I need an old fashioned.
So what's the problem? Efficiency is making too much of our labor pool obsolete. Our world is full of companies that care about cutting costs in order to make shareholders happy. Too many of today’s companies are founded off good exit plans and money, not added value for our society. Jobs are already being outsourced overseas and in the next few years more and more jobs are going to be outsourced to machines. We lost toll booths and dinnertime sales calls to the machines long ago. Now we’re up against cars that drive themselves, drones that patrol the skies and vending machines that dispense cupcakes. Soon enough, most of what we do will be done slightly better by a fine-tuned machine.
And it's happening sooner than later. Moore’s Law says technologies like Siri will be 16 times better within 6 years. More of our lives are being automated and as this happens, more jobs are being handled by machines that don’t take personal days or watch March Madness on their iPhone. Within the next few years, machines might be applying for your job. You better brush up that resume and make friendly with the finicky coffee maker. Just in case.
Our world is full of businesses that want to take and don’t want to give, but the economy is a two-way street. The cycle of capitalism depends on consumers as well as producers. For society as we know it to survive, we need a system that puts people to work rather than puts them out of work. To start, we can retire the current venture model. It's not sustainable. Which means we need leaders and policy makers to realize what’s going on and start taking action to protect our future. Going back to what worked in the past is not an option. Figuring out how we can live harmoniously with machines performing our jobs is.
Companies that figure out new economic models need to make a stand. While too many companies aren’t worried about adding value to society, we need forward-thinking companies that have hairy, audacious goals. Goals that go beyond the balance sheet. Economic progression is possible, just look at platforms like Kickstarter and Etsy. These are new ways of conducting business that put the emphasis back on the people and reward individuals for hard, unique work. The world needs more platforms that do this, giving more people the chance to become producers. Doesn't hurt that this lowers the chances that our jobs will be consumed by machines. For the world as we know it to survive, we need the companies with hairier goals to outnumber the ones who are just in it for the fat bank account. We can’t let the machines win. Not until the singularity, anyway.
What I Learned at SXSW Interactive 2012
This year I went to SXSW Interactive for the first time. While there, I talked to people and I saw people speak. Then I crammed what I could into a lightweight, handy Keynote. This is what I learned.
The keynotes, presentations and panels covered in this deck:
Ambient Location and the Future of the Interface
Presenter: Amber Case
Summary: We’re already cyborgs. But the technology isn’t inside of us. It’s in our pockets.
How to Harvest Consumer Intent from the Social Web
Presenters: Mullen CIO Edward Boches, Difference Engine Founder Farrah Bostic, Vayner Media co-founder AJ Vaynerchuk, and Springpad co-founder Jeff Janer
Summary: Brands try to insert themselves into our social graphs. But there’s a much more seamless and natural fit into our lives: interest graphs.
Create More Value Than You Capture
Presenters: Andrew Mcafee Principal Research Scientist MIT and Tim O'Reilly Founder, CEO O'Reilly Media
Summary: Jobs are being outsourced not just to low-wage countries, but to machines. We need to rethink how our economy works.
The End of Business as Usual
Presenters: Rock God Billy Corgan and Altimeter Group Principal Brian Solis
Summary: People have made the model change. But business leaders can’t bitch about it. They have to do something about it.
Why Your Car Will Be the 5th Screen in Your Life
Presenters: Tina Unterlaender, Director of Mobile, AKQA and Anupam Malhotra Manager, Connected Vehicle Audi Of America Inc
Summary: The time we spend in our cars shouldn't be wasted time connectivity-wise but it can't disrupt the driving experience.
Epic Battle: Creativity vs. Discipline in Social
Panelists: Mekanism CEO Jason Harris, 140 Proof Founder John Manoogian III, Barbarian Group Director of Earned Media Kristin Maverick and Story Labs Founder Sarahjane Sacchetti
Summary: There’s creativity. And there’s analytics. It seems like they don’t like each other. But we can make them get along.
Why Ad Agencies Should Act More Like Tech Startups
Presenter: AKQA CCO Rei Inamoto
Summary: The agency model isn’t working. So what can we learn from successful start-ups that would revitalize the advertising business?