Saturday, April 5, 2008

Techno-Economics

by James A Roberts

Has modern technology caused us to lose jobs, and put our economy into a tail-spin? I was under the impression that the discovery of computerized systems was going to improve our lifestyle and let mankind enjoy the good things in life. Instead, we are sending jobs overseas! Has anyone attempted to call the help lines listed as 1-800? Have you been surprised to learn the person you are talking to is in...China or India? I was.
Here's the thing, follow along for just a few minutes and if it makes sense, read on.
Let's say that originally it took six [6] men on an assembly line to build a car from scratch. (I know that's not right, bear with me.)
Ding, ding, ding. The computerized robot comes into being and now we have one man operating the computer that directs the robot and five men are not needed anymore.
WELL...THAT SHOULD CUT DOWN ON LABOR COSTS! AND send five men to the unemployment line.
However, after conversion to automation - our U.S Auto Makers raise the prices because they had to spend all that money on RESEARCH AND DEVELOPMENT of the robot. In the mean time factories are built overseas to manufacture autos FOR LESS in mass quantities to be sold in AMERICA for less money and appear to be a better product for the price compared to AMERICAN MADE.

NOW WE ARE GETTING TO IT.
I have always been under the impression that if one robot can take the place of five men, then wouldn't five robots being operated by those same five men that were sent to the Unemployment Line create five times the product for the Markets AND be able to sell for LESS MONEY. Simple mathematics - five times the production, labor costs - same number of employees, cost of R & D and increase in amount of raw material, BUT five times the production.
I really don't know where all of this is leading us to, but after all these years on this planet I guess I'll just hang around until it all makes sense.

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