29. Jun, 2017

An interesting thought process around Digital Transformation ...

When you search the Internet around the topic of Digital Transformation, you quickly come to different studies from e.g. PwC, McKinsey, Gartner and others, about the impact of automation on the economies in different countries. For my thought process today I have selected the following PwC study http://www.pwc.co.uk/economic-services/ukeo/pwcukeo-section-4-automation-march-2017-v2.pdf. --> "Our analysis suggests that up to 30% of UK jobs could potentially be at high risk of automation by the early 2030s, lower than the US (38%) or Germany (35%), but higher than Japan (21%).

These jobs are either taken by industry robots or artificial intelligence (AI). See another study for reference (http://fortune.com/2017/03/29/robots-workforce-labor-jobs-united-states/) --> Robots in the Workforce? Each 1 Costs 6 Jobs, a New Study Says. Loosing jobs will have two main consequences (I know this topic is much more complex, but let's keep it simple for now, to bring the story across). 

  1. Less people paying income taxes
  2. More unemployed people being at home, asking the government for financial help

Bill Gates made a clear statement/proposal with respect to #1 --> robots taking people's jobs should be covering their income taxes - https://www.youtube.com/watch?v=nccryZOcrUg. Great idea that possibly needs some fine tuning and will force the industry to adjust their business cases for robot usage, as the total cost of ownership will go up by including the income tax coverage. 

To cover #2, a discussion about a Basic Income could make a lot of sense? I found several related videos and talks on Youtube, just a short one to start here https://www.youtube.com/watch?v=UfUrgFmUvt8 and three more at the end for you to select. As Finland is mentioned as one current example, I was looking for details and found the following --> Finland is starting a national experiment to try and prove a basic income doesn’t make people lazyhttps://qz.com/876985/finland-hopes-to-dispel-one-of-the-biggest-critiques-of-a-basic-income/ (also see https://www.youtube.com/watch?v=8xPAlEkT0kk and http://www.kela.fi/web/en/basic-income-experiment-2017-2018). 😉

So what could people do in their new FREE time, when the basic income is already covered?

  • Look for other jobs to make more money above the basic income
  • Enjoy time with their family and friends
  • Support elderly people (due to demographic changes)
  • Enjoy hobbies
  • Learn something new, in the mindset of a Life-Long-Learning activity
    • Close skill gaps
    • Further improve on your strength
    • Reduce some of your weaknesses
    • Learn what you always wanted to learn, but never had the time so far
    • etc.

I am just in the process to think about a Life-Long-Learning concept from the youngest to the oldest age. Will keep you posted, when I can share some more details about it.

Below the other Youtube video examples about the Basic Income topic:

And some more numbers:

"The assurance of a certain minimum income for everyone, or a sort of floor below which nobody need fall even when he is unable to provide for himself, appears not only to be a wholly legitimate protection against a risk common to all, but a necessary part of the Great Society in which the individual no longer has specific claims on the members of the particular small group into which he was born." - Friedrich August von Hayek, (8 May 1899 - 23 March 1992) was an Austrian, later British, economist and philosopher