Automation Not Looking Good for Average Income Americans

Manufacturing productivity rises since 1995 while income falls

A study by the White House Council of Economic Advisors has found that there is an 83% chance that artificial intelligence will take over low paying jobs in the next few years. Employees earning less than $20 an hour will likely lose their jobs to automation. For workers earning more than $20 an hour there is a 31% chance of job loss, and for those paid double that there is a 4% chance. Source

An interesting graph found below shows that the advent of the early 20th-century industrial revolution increased productivity and increased wages for workers in the 20's, 30's, 40's, 50's, and 60's. But in the early 70's, productivity continued to increase while wages stayed the same and continue to remain flat to this day.

In summation, this appears to explain the income gap that has shown up in the US over the last 20 years. Wealth has been distributed to the upper tiers that control ownership of manufacturing, while the average worker has experienced lack of wage growth.

Will this be the model for the next economic revolution that AI is sure to bring? This time it will include white collar professions such as lawyers and financial experts. It appears that eventually, their incomes will lessen and flatten, while banks and corporations catch the windfall of increased efficiency and lowered costs.

2013 Oxford report entitled: The future of employment how susceptible are jobs to computerization?   

The results of that report captured here: Will a robot take my job click here find out what the chances are that your job will be done by robots and artificial intelligence in the near future.

Impact of automation on South East Asian economy

A good predictor of how AI will impact the US is what is happening in the South East Asian economy. This area of the world has grown the most economically over the last fifteen years and has a high level of innovation. AI and robots are starting to play a larger role there, just like in the American economy.

Automation has spurred most of the economic growth in SEA and boosted wages for the average worker, but an economic gap is growing there as well. Study of automation impact on South East Asian workers