The storm is coming

By Jim Thompson
HCP columnist

For over 200 years, we have laughed at the Luddites, those villagers who destroyed the steam-powered looms for fear they would lose their jobs. I fear the Luddites are about to be proven correct.  

Just take a look at announced layoffs. Amazon says it will cut at least 14,000 jobs. Microsoft has announced a cut of 6,000 jobs. Chevron plans to cut 15-20% of global workforce by the end of 2026. Target is eliminating 1,800 corporate jobs. Morgan Stanley has announced a hiring freeze. The list goes on.

Much of this is due to the adoption of artificial intelligence to do simple to complex tasks. (Chevron says their cuts are due to consolidation of recent acquisitions).  

I think we have just seen the start of this as pertains to artificial intelligence. Even in tiny companies, like mine, we are using Artificial Intelligence to provide better products to our clients (but never for writing, you are always getting my words as I write them).

Artificial intelligence is not just for thinking jobs, it is key to robots and driverless cars and trucks, too.

Look for truck drivers to be replaced with artificial intelligence. This has already been going on for several years.  

There are now cars being sold with hands-free driving. In both cases, the cars and trucks with these capabilities are posting better safety records than vehicles driven by humans.

Robots of all shapes and sizes are on the market. I am on my second robotic lawn mower. The first one was guided by a perimeter wire; the one I am using now is satellite guided. Roomba has been available for years.

Just this week, a home robot was introduced that stands 6 feet tall and will do many of the tasks around your home. It rents for $500 per month or you can buy it for $20,000 – less than a new car. If it can do many of the tasks around your home, it can likely be a fry cook at McDonald’s. Way cheaper than absence-prone teenagers. It also will not steal out of the cash register. Or come in with a bad attitude.  

Boston Dynamics has been selling a robotic dog named Spot for several years that can work as a night watchman or maintenance monitor, and works in any temperature without frostbite or heat stroke. Not sure what it is selling for now, but it originally sold for $75,000. Cheap, when one considers it works 24/7/365. No vacation, no sick days. 

All of this leads to two major storms as I see it.

First, an overall reduction in marginal jobs. I just don’t know if we can find enough semi-skilled jobs to replace those displaced here.

Second, robots and empty seats at computers do not pay employment taxes, Social Security and Medicare taxes.  So far, that has not been a problem. Multiply the layoffs and substitutions by thousands or tens of thousands and it just may be.

Stormy times are ahead, and likely to be here very soon.

Jim Thompson, formerly of Marshall, is a graduate of Hillsboro High School and the University of Cincinnati. He resides in Duluth, Ga. and is a columnist for The Highland County Press.

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