The Future of Human Labor
Regarding the quote by President Coolidge, I think he was
mostly right. I think the "business of America" is what most people
do to earn a living. But earning a living is not the same thing as the abstract
pursuit of wealth. Earning a living is how people pay their bills, which
consists primarily in feeding themselves, finding shelter and acquiring the
things necessary for a normal life. Anything beyond the basic necessities for
life is often considered a luxury. But most
people (certainly most Americans) are not content with the bare necessities for
existence. They want a higher level of comfort in their lives. Over time, as
our economy has grown, our "pursuit of happiness" became associated (perhaps
mistakenly) with a desire for physical comfort, i.e., leisure. Is comfort the
same thing as luxury? Well, it can be. It all depends on how much comfort you feel
you need in your life. The industrial revolution made possible the creation of
wealth on a larger scale which made some people rich, while giving many other
people the ability to acquire things which made life more pleasant, such as
washing machines, televisions and cars.
Adam Smith talked about the social organization of labor.
Thanks to the industrial revolution and its compartmentalization of labor, the
factory became a more efficient system for producing goods than the old pre-industrial
arrangement based on individual craftsmanship. With machines, you no longer
needed skilled labor to do many of the jobs which could now be done faster
through automation. Unfortunately, we learned that repetitive behavior and
treating people like machines leads to boredom and the loss of pride in one's
work. This results in higher absenteeism in the workplace. Today, many employees
no longer feel any loyalty to their work or their employer because they know
that they can be easily replaced by other non-skilled workers. This results in
a downward spiral of low self-esteem, absenteeism and a steady decline in quality
control. This trend was famously exposed in the American auto industry in the
70s when Japan started bringing its cars into the American market. Japanese
cars demonstrated a higher level of quality for less money than American cars.
Within 10 or 15 years, Japanese cars dominated the American market. Some of
this can be explained by saying that the price of labor was cheaper in Japan.
But the Japanese also proved to be more innovative in their systems management.
The relationship between employer and employee is completely different over
there.
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