The selected video is What will future jobs look like by Andrew McAfee, which focuses on the potential ramifications of automation. The reason why the given TED talk provides the most comprehensive answer is the use of data on two types of human capital. The author suggests that structural unemployment is already taking place in the current market, and approximately 5 million Americans are unemployed for six months at any given moment (TED, 2013). In addition, McAfee argues that there are two types of workers, such as Ted, with a college degree, and Bill without a college degree (TED, 2013). There is a striking trend of massive employment opportunity decrease for Bill-like people, who are the direct victims of structural unemployment. One should note that the consequences of such a shift in the labor market are manifested in marriage instability, economic unreliability, high incarceration rate, and poor child upbringing (TED, 2013). In other words, many areas of social elements are being affected by the rapid automation of non-intellectual labor.
However, the problem can be avoided through human capital emphasis, which requires a series of interventions. These might include education, skill reallocation, and universal basic income. Although machines can perform certain tasks at a better and more efficient rate, the absence of the middle class will inevitably affect businesses and the entire economy. Human capital needs to be at the center of the focus during the automation process because people can learn and create new products or pieces of work. Therefore, regardless of the labor market’s demand for Bill-like workers, their human capital is still valuable because it can generate new ideas and thoughts.
References
Gadenne, L. (2017). Tax me, but spend wisely? Sources of public finance and government accountability. American Economic Journal: Applied Economics, 9(1), 274-314. Web.
TED. (2013). What will future jobs look like? | Andrew McAfee [Video]. YouTube. Web.
TEDx Talks. (2015). What government can learn from baseball | Daniel Koh | TEDxCambridge [Video]. YouTube. Web.