by MIT Technology Review by David Rotman — It was 1938, and the pain of the Great Depression was still very real. Unemployment in the US was around 20%. Everyone was worried about jobs. In 1930, the prominent British economist John Maynard Keynes had warned that we were “being afflicted with a new disease” called technological unemployment. Labor-saving advances, he wrote, were “outrunning the pace at which we can find new uses for labour.” There seemed to be examples everywhere. New machinery was transforming factories and farms. Mechanical switching being adopted by the nation’s telephone network was wiping out the need for local phone operators, one of the most common jobs for young American women in the early 20th century. Were the impressive technological achievements that were making life easier for many also destroying jobs and wreaking havoc on the economy? To make sense of it all, Karl T. Compton, the president of MIT from 1930 to 1948 and one of the leading scientists of the day, wrote in the December 1938 issue of this publication about the “Bogey of Technological Unemployment.” How, began Compton, should we think about the debate over technological unemployment—“the loss of work due to obsolescence of an industry or use of machines to replace workmen or increase their per capita production”? He then posed this question: “Are machines the genii which spring from Aladdin’s Lamp of Science to supply every need and desire of man, or are they Frankenstein monsters which will destroy man who created them?” Compton signaled that he’d take a more grounded view: “I shall only try to summarize the situation as I see it.”
His essay concisely framed the debate over jobs and technical progress in a way that remains relevant, especially given today’s fears over the impact of artificial intelligence. Impressive recent breakthroughs in generative AI, smart robots, and driverless cars are again leading many to worry that advanced technologies will replace human workers and decrease the overall demand for labor. Some leading Silicon Valley techno-optimists even postulate that we’re headed toward a jobless future where everything can be done by AI. While today’s technologies certainly look very different from those of the 1930s, Compton’s article is a worthwhile reminder that worries over the future of jobs are not new and are best addressed by applying an understanding of economics, rather than conjuring up genies and monsters.
Uneven impacts