Let\'s think about the future. Self driving cars are already here; robotics prol
ID: 1162965 • Letter: L
Question
Let's think about the future. Self driving cars are already here; robotics proliferate in manufacturing. Artificial intelligence is coming. As each of these things is perfected and injected into society, the long-run aggregate supply curve will shift left. That's fantastic because it means our potential is great. But the downside of the efficiencies is employment. But will employment move with it. If a firm can replace 1,000 employees with artificial intelligence it has increased its efficiency. Will we need truck drives, when self-driving trucks are available? What about the employees. What do we do? So our questions is identify whether you believe it is a concern and why (using economic concepts in your answer). Then ldentify 3 things that society or the government could do to address this situation. Here's an article about the artificial intelligence from a positive perspective. And here's an article that is fearful of Artificial Intelligence and the future. Post your answer as a reply to these instructions. 20 Points for your answer to the above questions. Be sure to use some concepts from the text orExplanation / Answer
The future is here with Artificial Intelligence penetrating into the many aspects of our lives. AI development is transforming lives as it makes life simpler by doing all the work which would otherwise require a human labor and a certain amount of labor time. AI is expected to reduce the time taken to complete a task and decreases the labor supply needed for the same. This means that the jobs done by humans will be done by artificial intelligence which is more efficient. This raises the question of what humans will do for employment and income as they are replaced by machines.
The production capabilitites will improve by great margins while at the same time the requirement for human labor decreases as AI enters the economic system. It is a technological advancement that stands to slowly replace labor as a factor input. This means a one time capital investment for firms and reduced variable costs. It is advantageous for firms but the labor market will slowly collapse as there will be a shortage of demand for labor.
It is a concern for the economy as fall in labor demand will lay offs and increase in unemployment levels. This in turn will affect the income levels ->> which in turn affect the consumption spending. Thus the whole economic activity and growth will move towards a slowdown or a recession type situation. The national income will be affected adversely if such a situation arises where the growing population levels are not met by an active labor market.
Three things governments could do to avoid this situation:
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