Most FTs in China who want to be aware of their environment beyond the walls of their classroom probably feel they are being tossed like drift wood in the middle of the forces that are pulling and pushing the Chinese society in opposite directions. The xenophobia that many FTs have to deal with in my opinion is partly the result of economic pain and fears created by those forces. One of those forces that I used to worry about in China is the fast paced replacement of workers with robots. But then I just read "No, Robots Aren’t Killing the American Dream" (NYT's editorial board) and I started feeling tired like Taffy, I just felt it would be nice to post a recipe or copy and paste a footnote about the Barbary Coast of the 1600s. But it's wrong. We all have to stay awake.

1- Part of trump's electoral platform was that American jobs were/are taken by China or Mexico.

2- Until 5 minutes ago, I was proud to consider myself one step above in my thinking, with the likes of Christine Lagarde and Barack Obama: I used to believe - of course no, no, it's not China or Mexico - that American jobs are taken by robots/microchips.

3- And now... boy it's complicated... "If automation were accelerating rapidly, labor productivity and capital investment would also be surging. Instead, they are growing at the slowest pace in decades." A graph shows that both are quite low compared to any time since the post war. So, the problem is not automation...

...the problem with automation isn’t robots; it’s politicians, who have failed for decades to support policies that let workers share the wealth from technology-led growth.

The article describes the various mechanisms since the beginning of the 20th century, that allowed distribution of wealth despite automation: first, there was high school education, G I Bill, unions, robust minimum wage and overtime pay, fair taxation: they made productivity and pay rise in tandem. But counterbalancing measures stopped a few decades ago (the article does not say when but I would point at the Reagan years).

As a result, gains from improving technology have been concentrated at the top, damaging the middle class, while politicians blame immigrants and robots for the misery that is due to their own failures. Eroded policies need to be revived, and new ones enacted.


Economic history shows that automation not only substitutes for human labor, it complements it. The disappearance of some jobs and industries gives rise to others. Nontechnology industries, from restaurants to personal fitness, benefit from the consumer demand that results from rising incomes in a growing economy. But only robust public policy can ensure that the benefits of growth are broadly shared.

The editorial board then suggest a series of counterbalancing measures to help the middle class like:
- tax reform to pay for retraining and education in the middle of foreseeable technical advancements
- child are, elder care, fair scheduling
- a curb on stock buyback

Adding that all are unlikely to be implemented under this administration.

So, coming back to China: If even America can't counterbalance automation (because it just elected idiots), how is China - that is always far behind - going to do it?

I am slowly learning to think like Bernie, but right now, I am going to read about the Barbary Coast before going to sleep... I will be awake tomorrow, though.