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Automation Abundance and Challenge

1. But while the economy remains relatively static in its setting of priorities and allocation of resources, new conditions are emerging with enormous implications: the revolution of automation, and the replacement of scarcity by the potential of material abundance.

2. Automation, the process of machines replacing men in performing sensory, motoric and complex logical tasks, is transforming society in ways that are scarcely comprehensible. By 1959, industrial production regained its 1957 "pre-recession" level -- but with 750,000 fewer workers required. In the Fifties as a whole, national production enlarged by 43 percent but the number of factory employees remained stationary, seventenths of one percent higher than in 1947. Automation is destroying whole categories of work -- impersonal thinkers have efficiently labeled this "structural unemployment" -- in blue-collar, service, and even middle management occupations. In addition it is eliminating employment opportunities for a youth force that numbers one million more than it did in 1950, and rendering work far more difficult both to find and do for people in the forties and up. The consequences of this economic drama, strengthened by the force of post-war recessions, are momentous: five million becomes an acceptable unemployment tabulation, and misery, uprootedness and anxiety become the lot of increasing numbers of Americans.

3. But while automation is creating social dislocation of a stunning kind, it paradoxically is imparting the opportunity for men the world around to rise in dignity from their knees. The dominant optimistic economic fact of this epoch is that fewer hands are needed now in actual production, although more goods and services are a real potentiality. The world could be fed, poverty abolished, the great public needs could be met, the brutish world of Darwinian scarcity could be brushed away, all men could have more time to pursue their leisure, drudgery in work could be cut to a minimum, education could become more of a continuing process for all people, both public and personal needs could be met rationally. But only in a system with selfish production motives and elitist control, a system which is less welfare than war-based, undemocratic rather than "stockholder participative" as "sold to us", does the potentiality for abundance become a curse and a cruel irony:

1. Automation brings unemployment instead of mere leisure for all and greater achievement of needs for all people in the world -- a crisis instead of economic utopia. Instead of being introduced into a social system in a planned and equitable way, automation is initiated according to its profitability. American Telephone and Telegraph holds back modern telephone equipment, invented with public research funds, until present equipment is financially unprofitable. Colleges develop teaching machines, mass-class techniques, and TV education to replace teachers: not to proliferate knowledge or to assist the qualified professors now, but to "cut costs in education and make the academic community more efficient and less wasteful." Technology, which could be a blessing to society, becomes more and more a sinister threat to humanistic and rational enterprise.
2. Hard-core poverty exists just beyond the neon lights of affluence, and the "have-nots" may be driven still further from opportunity as the high-technology society demands better education to get into the production mainstream and more capital investment to get into "business". Poverty is shameful in that it herds people by race, region, and previous condition of infortune into "uneconomic classes" in the so-called free society -- the marginal worker is made more insecure by automation and high education requirements, heavier competition for jobs, maintaining low wages or a high level of unemployment. People in the rut of poverty are strikingly unable to overcome the collection of forces working against them: poor health, bad neighborhoods, miserable schools, inadequate "welfare" services, unemployment and underemployment, weak politician and union organization.
3. Surplus and potential plenty are waste domestically and producers suffer impoverishment because the real needs of the world and of our society are not reflected in the market. Our huge bins of decomposing grain are classic American examples, as is the steel industry which, in the summer of 1962, is producing at 53 percent of capacity.