30
Jul

Life in a Jobless World

Written on July 30, 2013 by Ángeles Figueroa-Alcorta in Culture & Society, Globalization & International Trade, Political Economy

Pleasure before Business

We shouldn’t worry about automation taking away our jobs – we should welcome it. If labor vanishes, we get to do the important things in life: self-chosen work and more real leisure!

By Guy Standing

Slow And Sure

Jobs are not disappearing. More people are in jobs than at any time in history. But the nature of jobs is changing – and many types of job are moving away from rich countries towards poorer ones. More of the available jobs are paying less. More are insecure, leading nowhere for those doing them.

Europe is not facing a jobs crisis due to automation. While technological advance, including automation, displaces some jobs, it creates others. Rather, the crisis is the result of a global transformation.

When neo-liberals wrested control of economic and social policymaking in the 1980s, liberalization policies opened up a global market system. Almost overnight, global labor supply trebled and more than a billion workers in China, India, and elsewhere started to be used in competition with workers in Europe and other rich countries.

As Europe made its labor markets more flexible – and more insecure for the new mass class, the precariat – there was downward pressure on wages, enterprise benefits and labor-based state benefits. Governments knew that liberalization would create greater inequalities and economic insecurity for millions relying on labor. Two courses were open.

They could have decided that those receiving income from profits and stock markets – the principal beneficiaries of liberalization – should share the gains with the rest of society. That would have prevented the emergence of a plutocracy of billionaires. Instead, governments made a Faustian bargain with their citizens. To disguise falling incomes, they financed an orgy of consumption with cheap credit, labor subsidies and tax credits. But in 2008 it ended, as every Faustian bargain must. Read more…

Guy Standing is Professor of Development Studies at the School of Oriental and African Studies in London.

As published by The European on July 28, 2013.

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