Political scientists will be dissecting the results of the 2016 US presidential election for the next decade but certainly one fact that is likely to be germane to any analysis is that real wages have been stagnant or declining for the past 45 years. I predict that this trend will only worsen no matter who is in power. The stark reality is that most jobs are replaceable by machines. This is not because AI has progressed to the point that machines can act human but because most jobs, especially higher paying jobs, do not depend heavily on being human. While I have seen some consternation about the prospect of 1.5 million truck drivers being replaced by self-driving vehicles in the near future, I have seen much less discourse on the fact that this is also likely to be true for accountants, lawyers, middle managers, medical professionals, and other well compensated professionals. What people seem to miss is that the reason these jobs are well paid is that there are relatively few people who are capable of doing them and that is because they are difficult for humans to master. In other words, they are well paid because they require not acting particulary human. IBM’s Watson, which won the game show Jeopardy and AlphaGo, which beat the world’s best Go player, shows that machines can quite easily better humans at specific tasks. The more specialized the task, the easier it will be for a machine to do it. The cold hard truth is that AI does not have to improve for you to be replaced by a machine. It does not matter whether strong AI, (an artificial intelligence that truly thinks like a human), is ever possible. It only matters that machine learning algorithms can mimic what you do now. The only thing necessary for this to happen was for computers to be fast enough and now they are.
What this implies is that the jobs of the future will be limited to those that require being human or where interacting with a human is preferred. This will include 1) jobs that most people can do and thus will not be well paid like store sales people, restaurant servers, bar tenders, cafe baristas, and low skill health workers, 2) jobs that require social skills that might be better paid such as social workers, personal assistants, and mental health professionals, 3) jobs that require special talents like artisans, artists, and some STEM professionals, and 4) capitalists that own firms that employ mostly robots. I strongly believe that only a small fraction of the population will make it to categories 3) and 4). Most people will be in 1) or not have a job at all. I have argued before that one way out is for society to choose to make low productivity work viable. In any case, the anger we saw this year is only going to grow because existing political institutions are in denial about the future. The 20th century is over. We are not getting it back. The future is either the 17th or 18th century with running water, air conditioning and health care or the 13th century with none of these.