Detroit
Robots took all of Detroits black jobs
A new study in the US from MIT and Boston University suggests that industrial robots, not Mexico, may be the bigger factor contributing to the high levels on unemployment in black communities.
Published: March 29, 2017, 9:02 am
Detroit
Entitled “Robots and Jobs: Evidence From US Labor Markets,” the authors of the study found that the addition of 1 robot per 1 000 workers results in an 18-35 bps reduction in the employment-to-population ratio and 25-50 bps reduction in wages. BPS, or basis point refers to a common unit of measure for interest rates and other percentages in finance.
Some scenarios estimate a huge spread of robots over the next decade, with the world stock of robots to quadruple by 2025. This would correspond to 5,25 more robots per thousand workers in the United States.
But the impact is dramatic when job losses are heavily concentrated in only certain industries. The automotive industry, which employs 39 percent of existing industrial robots, is situated in predominantly black Detroit, formerly known as Motor City, and the future is looking even bleaker for jobs.
The electronics industry too, employs 19 percent, metal products stands at 9 percent and the plastic and chemicals industry at a similar 9 percent, but the impact may be mitigated, racially speaking.
Bloomberg noted on the study: “One additional robot per thousand workers reduces the employment-to-population ratio by 0.18 percentage points to 0.34 percentage points and slashes wages by 0.25 percent to 0.5 percent, based on their analysis. To put that in context, the U.S. saw an increase of about one new industrial robot for every thousand workers between 1993 and 2007, based on the study.
“The employment effects of robots are most pronounced in manufacturing, and in particular, in industries most exposed to robots; in routine manual, blue collar, assembly and related occupations; and for workers with less than college education. Interestingly, and perhaps surprisingly, we do not find positive and offsetting employment gains in any occupation or education groups.”
The authors also estimate that robots may have increased the wage gap between the top 90th and bottom 10 percent by as much as 1 percentage point between 1990 and 2007.
An additional 3,5 million permanent jobs losses could occur over just the next 10 years which would increase the unemployment by over 2 percent.
All rights reserved. You have permission to quote freely from the articles provided that the source (www.freewestmedia.com) is given. Photos may not be used without our consent.
Consider donating to support our work
Help us to produce more articles like this. FreeWestMedia is depending on donations from our readers to keep going. With your help, we expose the mainstream fake news agenda.
Keep your language polite. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in, for example, Germany. Illegal content will be deleted.
If you have been approved to post comments without preview from FWM, you are responsible for violations of any law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.
If your comments are subject to preview by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.
We reserve the right to delete comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.
Americas
Ohio disaster: When hedge funds manage rail traffic
East PalestineAfter the derailment of a freight train loaded with highly toxic chemicals in the US state of Ohio, a devastating environmental catastrophe may now be imminent. The wagons burned for days, and a "controlled" explosion by the authorities released dangerous gases into the environment.
US President Biden orders ‘spy’ balloon to be shot down
WashingtonThe US President gave the order to shoot down China's "spy balloon". The balloon had caused US Secretary of State Blinken to cancel a trip to Beijing. In the meantime, a second balloon was sighted.
US is heading for a financial ‘catastrophe’ US Treasury Secretary warns
WashingtonOn January 19, 2023, the United States hit its debt ceiling of $31.4 trillion. The country faces a recession if it defaults on its debt, the US Treasury Secretary warned in an interview. Her warning underscored the danger of printing money.
Gun violence: More risk in Chicago and Philadelphia than Iraq, Afghanistan
Providence, Rhode IslandA striking statistic: young Americans are several times more likely to be injured by a gun in cities like Chicago and Philadelphia than they are while serving as a soldier in a foreign country.
Elon Musk, the first person in history to destroy $200 billion in a year
Never before in human history has a person lost as much money in one year as Elon Musk did in 2022. The Tesla and Twitter boss lost $200 billion last year. However, with his remaining $137 billion, he is still the second richest person in the world.
Extreme cold and winter storms sweep across US
More than a million households without electricity, thousands of canceled flights, temperatures in the double-digit minus range and already 41 fatalities: The US is being overwhelmed by an enormous cold wave.
Soros sponsors violent leftists and anti-police lobby as US crime surges
WashingtonThe mega-speculator and "philanthropist" George Soros remains true to himself – he has been sponsoring anti-police left-wing groups with billions of dollars.
FTX Founder Sam Bankman-Fried arrested after crypto billions go missing
NassauHe is no longer sitting in his fancy penthouse, but in a cell in the Bahamas: Sam Bankman-Fried (30), founder of the crypto company FTX, is said to be responsible for the theft of 37 billion euros. An interesting fact is that media in the EU have so far kept this crime thriller almost completely secret.
How Twitter helped Biden win the US presidency
WashingtonThe short message service Twitter massively influenced the US presidential election campaign two years ago in favor of the then candidate Joe Biden. The then incumbent Donald Trump ultimately lost the election. Internal e-mails that the new owner, Elon Musk, has now published on the short message service show how censorship worked on Twitter. The 51-year-old called it the “Twitter files”.
Alberta PM suspends cooperation with WEF
EdmontonThe newly elected Premier Danielle Smith of the province of Alberta in Canada has recently made several powerful statements against the globalist foundation World Economic Forum and its leader Klaus Schwab. She has also decided to cancel a strange consulting agreement that WEF had with the state.
