Obama: ATMs Are Out To Get You
President Obama told NBC News last night that his policies are not to blame for the state of the economy but technological innovation is:
"There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don't go to a bank teller, or you go to the airport and you're using a kiosk instead of checking in at the gate."
While technology has always produced profound changes in the labor markets, he's missing the other side of the ledger. Technological innovation produces gains that are visited elsewhere in the economy. Economist Don Boudreaux writes:
With respect, sir, you’re complaining about the source of our prosperity: innovation and the increases it causes in worker productivity.
With no less justification – but with no more validity – any of your predecessors might have issued complaints similar to yours. ...
Pres. Nixon might have groused in 1973 about such labor-saving innovation: “You see it when you step into an automatic elevator that doesn’t require an elevator operator, or when you observe that polio vaccination keeps people alive and active without the aid of nurses and all those workers who were once usefully employed making iron-lung machines, crutches, and wheelchairs.”
Again, efficiencies can disrupt the labor market. But President Obama needs to come to terms with how much damage his policies have caused. Making ATMs into bogeymen is really not going to cut it.
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Apr '11
Re: Obama: ATMs Are Out To Get You
Reading a recently published book on the significant development/improvement of the steam engine showed that these innovations in the 19th century to a technological that had existed since the 4th century expanded the economy but never collapsed it. So I guess that President Obama is truly not for high speed rail. Just imagine how many auto makers, union auto makers that is, will be put out of business when everyone rides the rails. No more shovel ready road projects etc. etc
Aug '10
Re: Obama: ATMs Are Out To Get You
Anyone remember Bush the Elder when he went to a grocery store in in '92 during his campaign and discovered the laser scanner? All the news outlets showed him being dazzled and dismayed when he scanned items, and they said,"The President doesn't get out very often! ...Way out of touch with the man and woman on the street!..."
Mr O'Bummer, here's a tip: Steam power began replacing hand looms and putting weavers out of jobs in the early 1800's. They rebelled and smashed the new looms. Led by a man named Ned Ludd, they were known as Luddites.
BTW Mr. President, what happened to all those promised high tech 'green jobs' you spent $100 billion on? Like Spain, we're discovering it's all a fantasy. The money was flushed down into the coffers of your union buddy scam artists.
Edited on Jun 15, 2011 at 7:03amFeb '11
Re: Obama: ATMs Are Out To Get You
Indeed, there were once **half a million people** employed in the US as elevator operators. In a post a couple of years ago, I proposed (sarcastically) The Elevator Safety and Economic Opportunity Act, which would have required the replacement of automatic with manual controls. I'm pretty sure that quite a few liberals would have found it very reasonable.
Re: Obama: ATMs Are Out To Get You
I always feel it's my civic duty to point out that this is something of an urban legend. Andrew Rosenthal of The New York Times had made the story up, basically. He based his article on a complete misreading of a pool report and didn't mention that the scanner in question (which Bush expressed mild favor for) was a new one that could weigh groceries and read mangled and torn bar codes.damaged.
When The Times was confronted with the errors in their reporting via a videotape of the supposed event, they doubled down. Which reflects poorly on all journalists. And that's why I will always correct the record.
Jun '11
Re: Obama: ATMs Are Out To Get You
This just in: "A Presidential Panel comprised of academic economists who all dress alike and went to the same schools today released its long awaited report on how to reinvigorate the flagging labor market. At the top of the list was a brilliant suggestion precipitated by the invention of the automobile which with obviously disastrous consequences led to the invention of hearses for funeral directors. It is estimated that there are a really, really lot of body collectors with wooden carts pulled by donkeys who have been laid off by such disastrous new technologies. The Panel is making it illegal to own or operate gasoline powered hearses, thus enabling all those body collectors to regain their footing in society. "It's a win win for everyone involved, said an economist. "The body collectors will again earn wages which they can spend on beer and cigarettes, thereby stimulating those industries and the funeral directors, they shouldn't have been so open to these so called "new technologies." The Body Collector's Union released a statement requiring that all bodies for pick up be left on the curb on Tuesdays before 10:00. Any later and it interferes with the coffee break mandated by Federal Law.
Nov '10
Re: Obama: ATMs Are Out To Get You
Mollie - correcting the record of the NYT could provide lifetime employment for thousands, it really is a shovel ready job! Maybe you are on to something there....
Aug '10
Re: Obama: ATMs Are Out To Get You
Mollie Hemingway, Ed.
President Obama told NBC News last night that his policies are not to blame for the state of the economy but technological innovation is:
Oh that evil technological innovation, allowing businesses to employ fewer workers than they might otherwise employ.
By contrast, the minimum wage is good... I guess because it forces businesses to employ fewer people than they might otherwise employ.
Edited on Jun 15, 2011 at 8:11amAug '10
Re: Obama: ATMs Are Out To Get You
Of course not. Shovel-ready projects should be replaced with teaspoon-ready projects.
Jan '11
Re: Obama: ATMs Are Out To Get You
Mollie Hemingway, Ed.
Economist Don Boudreaux writes:...
CafeHayek has been a longtime favorite of mine to visit. I see that it's not on the blogroll for this site but I'd just like to promote it in this here comment. Don Boudreaux writes some fantastic letters to various editors and station program directors. And co-blogger Russ Roberts is always dispensing his knowledge of Economics in interesting and engaging ways -- particularly through his weekly EconTalk and Keynes vs. Hayek videos with John Papola.
Dec '10
Re: Obama: ATMs Are Out To Get You
Of course, what we need is fewer innovations in useful technologies, like ATMs, and more innovations in wind turbines driven by fairy farts. We'll all be employed as magic bean growers.
Jan '11
Re: Obama: ATMs Are Out To Get You
By the way, Mollie, the hyperlink for "Don Boudreaux" isn't working correctly for me. From my end it looks like it needs to be fixed with a corrected url.
May '10
Re: Obama: ATMs Are Out To Get You
Ahem; organic magic bean growers.
Re: Obama: ATMs Are Out To Get You
Thanks, LowcountryJoe. It should be fixed now.
May '10
Re: Obama: ATMs Are Out To Get You
Midget Faded Rattlesnake
Mollie Hemingway, Ed.
President Obama told NBC News last night that his policies are not to blame for the state of the economy but technological innovation is:
Oh that evil technical innovation, allowing businesses to employ fewer workers than they might otherwise employ.
I suppose Silicon Valley is the source of our unemployment, what with all those newfangled computing machines and their softwares like the Googles and the interwebs.
Is President Obama a genuine Luddite?
Feb '11
Re: Obama: ATMs Are Out To Get You
Regarding the power loom and the Luddites...it is true, of course, that the improvements in the textile industry wound up creating employment for hundreds of thousands and raising the standard of living for everyone. But the reality was also that for most skilled weavers, incomes fell sharply as their skills were replaced by mechanization. Some surely recovered and learned entirely new skills, say as steam-engine erectors, but most did not.
May '10
Re: Obama: ATMs Are Out To Get You
The older I get the more progressives sound like reactionaries. I cannot help but think the progressive dream world would consist of all my friends and family being employed in the union steel factories where I grew up (like in the 1950s). We would have eight hours a day and understand our rightful, lower-middle class role (that is, to vote Democrat).
Apr '11
Re: Obama: ATMs Are Out To Get You
The only reason their incomes fell, as I understand it, is because it was inflated due to the guilds that they protected so passionately. They were the only game in town and they wanted it kept that way. They attempted to destroy innovation to retain the status quo. Remind anyone of anything in the present.
President Obama can't be against innovation just look what it's done for our federal bureaucracy.
It made me think of Nancy Pelosi shopping, her asking for a price check and the clerk saying your going to have to scan it, swipe your card and then we will tell you what it costs. To cynical?
Apr '11
Re: Obama: ATMs Are Out To Get You
Innovation certainly put Congressman Weiner out of a job.
Damn that twitter!
I believe he could make the first case for "Innovation job loss"
John Edwards could plead his case in court, Arnold could provide the muscle should anyone witnesses need "intimidation" and DSK could set up the funding!
I'm all a Twitter just thinking of the possibilities.
Feb '11
Re: Obama: ATMs Are Out To Get You
Ox..guild protection certainly had something to do with the weavers' pay levels, but the higher skills required for a hand weaver vs a machine-loom attendant would surely have commanded a substantial premium even absent the guilds.
Oct '10
Re: Obama: ATMs Are Out To Get You
Okay, this doesn't add much of value to the conversation, but I have to get it off my chest.
President Obama is a dumb person.