An educators response to technological unemployment.

http://www.christenseninstitute.org/blog/inequality-education-age-trump/

Inequality and education in the age of Trump
Michael B. Horn
Jan 12, 2017

Fears are mounting that technology will automate and displace jobs on a scale 
never before seen. At the same time, despite its clear benefits, free trade 
does lead to the displacement of some individuals’ jobs.

As a recent Harvard Business Review piece titled “What So Many People Don’t Get 
About the U.S. Working Class,” which was written to explain the rise of 
President-elect Trump, noted, “One key message is that trade deals are far more 
expensive than we’ve treated them, because sustained job development and 
training programs need to be counted as part of their costs.” The same is true 
for the continued development and spread of new technologies.

To tackle the specter of mass technological unemployment, we need to lower the 
cost for adults of getting more education and training. That may require not 
just financing adult learners’ educations, seeding innovative and more 
affordable learning models, and covering training when someone loses her job 
because of trade, but also paying for adults’ living expenses as they learn and 
retool.

If we don’t figure out how to tackle the cost of education and training, the 
numbers of people feeling displaced and disenfranchised will only grow.

There are numerous prescriptions and recommendations emerging to tackle 
technological unemployment.

Universal basic income is gaining steam. It has its allures, but I have three 
worries. First, I wonder if it would lead to rampant inflation, which would 
reduce the purchasing power of that income level such that it would not solve 
the problem. Second, it could lead to more individuals opting out of work, 
which could create broader social challenges in communities and reduce the 
nation’s competitiveness. And third, it feels like a blunt solution to a 
complicated set of problems that would likely create winners, losers, and 
unintended consequences.

A second antidote relies on an augmentation strategy. Enterprises and 
individuals should be approaching the great technological advances with an 
“augmentation strategy,” by starting with “what humans do today and figuring 
out how that work could be deepened rather than diminished by a greater use of 
machines,” according to Thomas Davenport and Julia Kirby in their Harvard 
Business Review article “Beyond Automation: Strategies for remaining gainfully 
employed in an era of smart machines.”

This makes sense. It’s how humans have ultimately responded to all major 
technological advances—when we have responded constructively. Although whole 
job functions and industries disappear, we adapt by leveraging the technology 
to do more tasks that add more value.

But it is also incomplete. The pace of technological progress has picked up 
dramatically. To keep up, many adults will need to learn new knowledge and 
skills every few years. Learning is becoming a lifelong endeavor. Rather than a 
discreet phase of one’s life, education is more likely to be something to which 
people return continually to skill-up and keep pace.

That will require more educational options that are faster, less expensive, and 
flexible and result in good jobs.

Thinking of postsecondary education in a more traditional way—much as the 
proposals around free community college or debt-free public college would 
do—not only directly undercuts more innovative and affordable offerings that 
may emerge, but may also distract from another key lever in this equation.

It may be critical to provide money to pay for people’s living expenses as they 
enter these educational experiences. In other words, it won’t be enough to 
provide money to help learners afford tuition—although doing that in the form 
of education savings accounts, for example, as Gov. Jeb Bush had proposed in 
his campaign, is important, especially given ESAs’ flexibility to be used 
potentially on costs like child care while a student is taking a class.

The reason is that leaving a job that provides for one’s family to enroll in an 
educational program carries an opportunity cost. Even if someone can 
simultaneously work and learn in a formal educational program, those programs 
still carry an opportunity cost with them in an increase in failure rates, as 
learners struggle to balance their lives and dedicate themselves to the 
education. Learners entering these programs often will not be able to afford 
failure. Waiting to be laid off before enrolling also has an opportunity cost, 
in that it is much harder to get back into the workforce.

As a result, covering that opportunity cost—in the form of money to help 
learners pay for living expenses and to support their families—may be critical 
to cracking this nut and giving adults the opportunity to reskill and not 
experience the disenfranchisement that comes from displacement. The program 
could perhaps be modeled on welfare reform, in which someone who is unemployed 
collects unemployment payments so long as they show evidence of trying to get a 
job. The analog here would be that a learner would collect payment for living 
expenses so long as she showed evidence of making actual progress—not just 
enrollment in—an educational program focused toward getting a job.

Building in that cost—to individuals and society—and supporting the lives of 
the working class as they cycle through jobs and educational programs to 
reskill for the next may be critical to tackling the trends of displacement and 
disenfranchisement just beginning to roil our society.

For more, see:

Making America great again: College edition
Free college: Beyond the buzzwords

Michael B. Horn

Michael is a co-founder and distinguished fellow at the Clayton Christensen 
Institute. He currently works as a principal consultant for Entangled Solutions.



Sent from my iPhone

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