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Robots Are Us: Some Economics of Human Replacement

Author

Listed:
  • Seth G. Benzel

    (Initiative on the Digital Economy, MIT)

  • Laurence J. Kotlikoff

    (Boston University)

  • Guillermo LaGarda

    (Inter-American Development Bank)

  • Je↵rey D. Sachs

    (Columbia University)

Abstract

Will smart machines do to humans what the internal combustion engine did to horses – render them obsolete? If so, can putting people out of work or, at least, good work leave them unable to buy what smart machines produce? Our model’s answer is yes. Over time and under the right conditions, today’s supply reduces tomorrow’s demand, leaving everyone worse off in the long-run. Carefully crafted redistribution policies can prevent such immiserating growth. But blunt policies, such as limiting intellectual property rights or restricting labor supply, can make matters worse.

Suggested Citation

  • Seth G. Benzel & Laurence J. Kotlikoff & Guillermo LaGarda & Je↵rey D. Sachs, 2019. "Robots Are Us: Some Economics of Human Replacement," Boston University - Department of Economics - Working Papers Series WP2020-003, Boston University - Department of Economics.
    • Handle: RePEc:bos:wpaper:wp2020-003
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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