Why High Taxes Kill Motivation and the Government Jobs Myth
Your friend just got a raise. He is now making $150,000 a year. Great, right? Except he lives in California. Between federal taxes, state taxes, …
Read ArticleOpen any social media platform right now and someone is panicking about ChatGPT replacing their job. Designers, writers, coders, customer service reps – everyone is convinced that this time, the machines are finally coming for them. Your LinkedIn feed is full of people posting apocalyptic takes about how AI will eliminate 300 million jobs by next Tuesday.
Take a breath. We have heard this exact panic before. Not once. Not twice. Literally every single generation for the past three hundred years has been convinced that the latest technology would destroy all the jobs. Every single generation was wrong.
Not a little wrong. Spectacularly, embarrassingly wrong. And the pattern is so consistent that it should make you suspicious of anyone claiming “but this time is different.”
In the early 1700s, a machine was invented that could knit stockings. The workers who knit stockings by hand lost their minds. They rioted. In one episode, they destroyed over a thousand stocking frames. The inventor had to flee for his life. The military was called in to restore order. The argument was simple: this machine will destroy our jobs and our livelihoods.
Know what happened? A hundred years later, the number of people employed in the stocking industry was a hundred times larger than before the machine existed. Not a typo. 100x more workers.
Cotton spinning tells the same story. In 1760, England had about 7,900 people working in the cotton industry. Then machines arrived. Workers rioted. Politicians wrung their hands. Twenty-seven years later, 320,000 people worked in cotton. That is a 4,400% increase in employment. In the exact industry that was supposed to be destroyed.
Steamships are another good one. Between 1870 and 1880, steam-powered vessels moved 22 million more tons of cargo – with 3,000 fewer workers. If you stopped the analysis there, it looks like machines killed 3,000 jobs. But total employment in the shipping industry grew massively, because cheaper shipping meant more trade, more routes, more ports, more warehouses, more everything.
This is the pattern that repeats every time. The specific old jobs change. The total number of jobs grows. Every. Single. Time.
In 1932, during the Great Depression, a group called the Technocrats showed up with a theory: machines had become so productive that they had permanently eliminated the need for human workers. Unemployment was not a temporary crisis – it was the new reality. Humans were obsolete.
They were taken seriously for about five minutes, then mostly laughed away. But the core idea never died. It just kept getting rebranded.
In 1961, the panic word was “automation.” Congress held hearings. Newspapers ran terrifying features. Labor unions demanded protections. The argument was identical to the Technocrats’: machines are now too good, humans are finished.
Then the US economy went on to create tens of millions of new jobs over the next decades. Nobody apologized for the false alarm.
In the 1980s, spreadsheets were going to kill every accountant. Instead, the number of accountants grew, because spreadsheets made financial analysis so cheap and fast that every small business could afford it. More demand for accounting, not less.
In the 1990s, email was going to kill the postal service. ATMs were going to eliminate bank tellers. Except the number of bank tellers actually grew after ATMs were introduced, because ATMs made it cheaper to open branches, which meant more branches, which meant more tellers. The ATM killed the specific task of dispensing cash. It did not kill the job of being a bank teller.
In the 2010s, self-checkout machines were supposed to wipe out cashiers. Uber and Lyft were going to destroy all taxi driver jobs. Amazon warehouse robots were supposed to eliminate warehouse workers. Amazon now employs over 1.5 million people. More than before the robots.
The logic is simple once you see it. When a machine makes something cheaper to produce, the price drops. When the price drops, more people can afford it. When more people buy it, you need more people to handle the increased volume – selling it, shipping it, marketing it, customizing it, repairing it, improving it, and doing the thousand other things that surround any product or service.
A machine replaces a specific task. It does not replace an entire industry. It makes the industry bigger.
When one tractor could do the work of fifty farm laborers, food got cheaper. When food got cheaper, people spent their extra money on other things – clothes, entertainment, education, healthcare. Those industries hired the people who were no longer needed on the farm. The total number of jobs did not shrink. The jobs moved.
This is not theory. This is three centuries of documented, measurable, inarguable economic history. And yet every twenty years, someone shows up on a TED stage claiming the machines will finally win this time.
Here is where this gets genuinely harmful. The fear of machines does not just cause bad predictions. It causes bad policy. When people believe machines will destroy jobs, they create rules specifically designed to prevent efficiency. And those rules hurt everyone.
The historical examples are almost comically absurd. In New York City, electricians’ unions refused to install electrical equipment that was manufactured out of state – unless it was completely disassembled and then reassembled on site. Think about that. Perfectly good equipment, tested and ready, had to be torn apart and put back together just to create busywork.
Plumbers’ unions banned prefabricated pipe. Pipe that was cut and threaded in a factory had to be ignored. Instead, plumbers had to cut and thread every pipe on the job site, by hand, at the customer’s expense. Not because it was better. Because it was slower.
Painters’ unions restricted the use of spray guns to force workers to use brushes instead. Spray guns were faster and often produced a better finish, but speed was the enemy when your goal was to maximize hours billed.
Trucking rules required that any truck entering New York City had to hire an additional local driver, even if the original driver was perfectly capable and legally licensed. Just a toll for entering the city, dressed up as a labor regulation.
Railroads were required to employ firemen on diesel and electric locomotives. Firemen. The people who shoveled coal into steam engines. On trains that had no coal and no steam engine. They sat in the cab and did nothing, because the union contract said they had to be there.
Musicians’ unions required venues to hire live musicians to stand around doing nothing when recorded music was being played. You are paying a drummer to not drum, because a record is playing, because the union said so.
Every single one of these rules made things more expensive for regular people. Every single one existed because someone believed that preventing efficiency would save jobs. It did not save jobs. It just made the economy worse at creating new ones.
Now we have ChatGPT, Midjourney, GitHub Copilot, and a hundred other AI tools. And the panic is louder than ever. “AI will replace all writers.” “AI will replace all coders.” “AI will replace all designers.” “AI will replace all customer service.” “AI will replace everyone.”
Let’s apply what we know.
Will AI change what specific tasks people do? Absolutely. A copywriter who spends eight hours writing product descriptions will probably spend two hours doing it with AI assistance instead. A coder who spends a day writing boilerplate will knock it out in an hour.
But what happens to the other six hours of the copywriter’s day? She writes more copy. Or she moves to strategy. Or she does things that were previously too expensive to justify. A company that could only afford to write descriptions for its top 100 products can now afford descriptions for all 10,000. That is not less work. That is more work of a different kind.
The same thing happened with every previous tool. Photoshop did not kill graphic designers – it created millions more of them, because suddenly anyone with a computer could attempt design, and the demand for good design exploded. Excel did not kill financial analysts – it made financial analysis so accessible that every company needed more of it.
AI will make certain tasks trivially cheap. That will make the industries around those tasks bigger, not smaller. It will create jobs we cannot even name yet, just like “social media manager” and “cloud architect” and “UX researcher” were not job titles twenty years ago.
You know what actually destroys employment on a mass scale? Not machines. Policies designed to “protect” jobs from machines.
When you force an industry to stay inefficient, you do not save it. You make it uncompetitive. You make its products expensive. You drive customers to alternatives – or to competitors in other countries who did not hobble themselves with make-work rules.
The countries and industries that embraced automation fastest are the ones with the most jobs today. The ones that fought it hardest are the ones that lost their industries entirely. No amount of union rules saved American textile workers from competing with countries that automated aggressively. The rules just delayed the inevitable while making the transition more painful.
Three hundred years of evidence says the same thing: machines do not destroy jobs. They destroy specific tasks, make industries cheaper and bigger, and create new jobs that did not exist before. This has happened with the spinning jenny, the steam engine, the tractor, the assembly line, the computer, the internet, the ATM, the spreadsheet, and the robot arm. It will happen with AI.
The people panicking about ChatGPT are making the exact same mistake as the stocking rioters in the 1700s. The exact same mistake as the Technocrats in the 1930s. The exact same mistake as the automation alarmists in the 1960s. The technology changes. The panic stays the same. And the panic is always wrong.
Your job is not going to be “stolen” by a robot. Your job is going to change. Some tasks will disappear. New ones will appear. The transition might be uncomfortable. It might require learning new skills. But the total number of jobs in the economy will not shrink. It never has. Betting against three centuries of consistent evidence is not caution – it is superstition.
Stop worrying about the robots. Start learning how to work with them.
Your friend just got a raise. He is now making $150,000 a year. Great, right? Except he lives in California. Between federal taxes, state taxes, …
Read ArticleYour buddy wants to start a restaurant. He has never cooked professionally, has no business plan, and his credit score looks like a winter temperature …
Read Article