This is the second of two posts pulling together the strands of what I think I understand about Trump’s win in the US Presidential Election. (The first post is here). The first four things I think I know are:
- Neo-liberalism just died
- The long-run theories are best
- Crises are invisible before they erupt
- Class matters
Here’s another six thoughts.
I’ve read too much on the American election and on Trump’s win, and I wanted to pull it together to make sense of it. Having read too much, I’ve now written too much, so my plan is to split this into a couple of posts on the blog and then put the whole thing together as one longer post on Medium. Trump’s win is the kind of surprise that will keep happening in a world where people are expected to be both enthusiastic consumers and low-paid but grateful workers. You can only fill that gap by loading people with debt, but that’s a one-time card that’s already been played.
This post is a long extract from my essay on The Future of Work written for Future Agenda. The full piece is on Medium.
The current discussion about the future of work seems to be monopolised by the version of the future in which technology destroys jobs. It has gained an air of inevitability, as if it is the only possible future. NESTA’s open minded report suggested that the “robots hypothesis” resonated because it connected “two powerful themes in popular culture: the rapid advance of IT, and the startling growth in inequality.” But there is a problem: it hasn’t happened before.
So it is worth considering reasons why it might just be a phase. The economic historian Carlota Perez has a model of technological development that describes five long waves, or surges, since the Industrial Revolution. Each is around 50–60 years and follows an S-curve pattern; the last quarter of each is marked by saturated markets, diminishing investment opportunities and declining returns. The first part of the 20th century was dominated by the oil and auto surge; the latter part by ICT. The ICT wave is now reaching the turning point at which returns start to fall.
On this model, finance is looking for new opportunities, and although it is too early to say what the next platform will be, and we’re still 10–15 years away from it, it is possible to imagine that the next technological surge might be built around, say, a material such as graphene.
Labour market woes
David Autor concludes that much of “the labor market woes” of the past decade are not down to computerisation, but to the financial crisis and reduced investment (starting with the dot.com collapse) and the impact of globalisation on labour markets. He suggests that many middle-skill jobs will prove more resistant to unbundling than advertised; while computers can do specific tasks, turning collections of tasks into self-contained jobs, and then automating them, requires substantial investment. In the long run, people are both more flexible and cheaper.
One implication is that the question of the future of work may actually be about power in the labour market. This leads to broadly political interpretations of the future of working conditions, ranging from Guy Standing’s formulation of the fragile “precariat”, facing intermittent, insecure work, David Weil’s description of the “fissured workplace”, in which many functions are sub-contracted, and the rise of campaigns for the Living Wage.