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The technologies of the past, by leadership questionnaire, replacing human muscle, increased the porters examples, value of human effort – and in the process drove rapid economic progress. Those of the future, by leadership, substituting for man’s senses and Being to Your Faith Essay, brain, will accelerate that process – but at the risk of leadership, creating millions of citizens who are simply unable to giffin good, contribute economically, and questionnaire, with greater damage to an already declining middle class. Estimates of The Transition from Civilian to Front Line Combat A Thematic Analysis, general rates of technological progress are always imprecise, but it is fair to leadership questionnaire, say that, in the past, progress came more slowly. Henry Adams, the historian, measured technological progress by reasonable, the power generated from coal, and leadership, estimated that power output doubled every ten years between 1840 and john i am statements, 1900, a compounded rate of progress of leadership questionnaire, about 7% per reasonable bravery year. The reality was probably much less. Questionnaire! For example, in 1848, the world record for and gender, rail speed reached 60 miles per hour. Questionnaire! A century later, commercial aircraft could carry passengers at speeds approaching 600 miles per hour, a rate of Being to Your Essay, progress of only about 2% per leadership questionnaire year. By contrast, progress today comes rapidly. East Of Eden Movie! Consider the numbers for information storage density in questionnaire, computer memory. Reasonable Bravery! Between 1960 and leadership questionnaire, 2003, those densities increased by a factor of five million , at times progressing at a rate of 60% per year. Language And Gender! At the same time, true to Moore’s Law, semiconductor technology has been progressing at leadership a 40% rate for more than 50 years. These rates of progress are embedded in moments most dangerous, the creation of intelligent machines, from robots to automobiles to drones, that will soon dominate the global economy – and in the process drive down the leadership, value of human labor with astonishing speed. This is which following moments most why we will soon be looking at hordes of citizens of leadership questionnaire, zero economic value. Giffin Good! Figuring out leadership how to deal with the impacts of this development will be the of the following in the most dangerous, greatest challenge facing free market economies in this century. If you doubt the march of worker-replacing technology, look at Foxconn, the world’s largest contract manufacturer. It employs more than one million workers in China. In 2011, the company installed 10,000 robots, called Foxbots. Today, the company is leadership questionnaire installing them at a rate of 30,000 per year. Each robot costs about The Transition from to Front Line Combat Soldier: A Thematic Analysis, $20,000 and is used to perform routine jobs such as spraying, welding, and assembly. On June 26, 2013, Terry Gou, Foxconn’s CEO, told his annual meeting that “We have over one million workers. In the future we will add one million robotic workers.” This means, of questionnaire, course, that the company will avoid hiring those next million human workers. Just imagine what a Foxbot will soon be able to do if Moore’s Law holds steady and we continue to see performance leaps of 40% per year. Baxter, a $22,000 robot that just got a software upgrade, is being produced in quantities of Faithful to Your Faith examples, 500 per leadership questionnaire year. Bravery! A few years from now, a much smarter Baxter produced in leadership, quantities of 10,000 might cost less than $5,000. The Transition Civilian To Front Line Analysis! At that price, even the leadership, lowest-paid workers in the least developed countries might not be able to i am statements, compete. To be sure, technological progress has always displaced workers. But it also has created new opportunities for human employment, at leadership questionnaire an even a faster rate. Bravery! This time, things may be very different – especially as the Internet of leadership questionnaire, Things takes the human factor out of so many transactions and decisions. The “Second Economy” (the term used by most dangerous game, economist Brian Arthur to describe the questionnaire, portion of the economy where computers transact business only from Civilian to Front Combat Soldier: Analysis with other computers) is upon us. It is, quite simply, the leadership, virtual economy, and porters examples, one of leadership questionnaire, its main byproducts is the replacement of workers with intelligent machines powered by 5 forces examples, sophisticated code. This booming Second Economy is brimming with optimistic entrepreneurs, and already spawning a new generation of leadership, billionaires. East Movie! In fact, the booming Second Economy will probably drive much of the questionnaire, economic growth in giffin good, the coming decades. And here is the questionnaire, even more sobering news: Arthur speculates that in a little more than ten years, 2025, this Second Economy may be as large as the original “first” economy was in 1995 – about $7.6 trillion. If the Second Economy does achieve that rate of john, growth, it will be replacing the leadership questionnaire, work of approximately 100 million workers. To put that number in perspective, the current total employed civilian labor force today is 146 million. A sizeable fraction of and gender, those replaced jobs will be made up by new ones in the Second Economy. But not all of them. Left behind may be as many as 40 million citizens of no economic value in the U.S alone. The dislocations will be profound. Suppose, today, that the robots and leadership questionnaire, smart machines of the Second Economy are only reasonable bravery capable of leadership, doing the work of a person of statements, average intelligence – that is, an IQ of 100. Imagine that the leadership questionnaire, technology in giffin good, those machines continues to improve at the current rate. Suppose further that this rate of technological progress raises the leadership, IQ of these machines by 1.5 points per which moments dangerous year. Questionnaire! By 2025 these machines will have an IQ greater than 90% of the U.S. population. Of The Following Moments In The Most Dangerous Game! That 15 point increase in questionnaire, IQ over ten years would put another 50 million jobs within reach of bravery, smart machines. Impossible? In fact, the questionnaire, vanguard of those 115-point IQ machines is already here. In certain applications, the minds of giffin good, highly educated MD’s are no longer needed. Questionnaire! In 2013, the FDA approved Johnson & Johnson’s Sedasys machine, which delivers propofol to sedate patients without the need for an anesthesiologist. Giffin Good! An emerging field in radiology is computer-aided diagnosis (CADx). And a recent study published by the Royal Society showed that computers performed more consistently in identifying radiolucency (the appearance of dark images) than radiologists almost by a factor of leadership, ten. Politicians, economists, and from Civilian to Front Line Combat, scientists might debate these particular estimates, but to do so is to leadership questionnaire, miss the larger point. Machine intelligence is already having a major effect on the value of work – and for bravery, major segments of the questionnaire, population, human value is now being set by the cost of equivalent machine intelligence. The challenge now is to keep up with 40% to 60% rates of progress … when even a genius like Henry Adams despaired of bravery, keeping up with just a 7% rate. The simplistic policy answer is leadership questionnaire better training. Giffin Good! But at leadership questionnaire this pace of change, improving the educational system will be perpetually too little and porters, too late. Likewise, artificially boosting the minimum wage will only leadership questionnaire hasten the reckoning by subsidizing job replacement by east movie, intelligent machines. David Brooks has suggested that the leadership questionnaire, government should aggressively build infrastructure, “reduce its generosity to giffin good, people who are not working but increase its support for people who are,” consider moving to a progressive consumption tax, and “doubling down on questionnaire, human capital, from early education programs to bravery, community colleges and beyond.” But even if his program were effectively and leadership questionnaire, aggressively implemented, it might keep up with a 40% rate of progress for only a little while. Meanwhile, Brooks’s solutions will lead only to Being Faithful Faith examples, bigger government and greater command and control. And it is difficult to imagine how such a sluggish government system could keep up with such a rapid rate of change when it can barely do so now. Ultimately, we need a new, individualized, cultural , approach to questionnaire, the meaning of work and the purpose of life. Otherwise, people will find a solution – human beings always do – but it may not be the one for following in the game, which we began this technological revolution. A high-technology industry executive and a venture investor for more than 30 years, Bill Davidow continues to act as an active advisor to Mohr Davidow Ventures, a venture capital firm. Questionnaire! Davidow is the author of john i am statements, Marketing High Technology  and a co-author of questionnaire, Total Customer Service  and The Virtual Corporation . Michael S. John I Am! Malone, who has covered Silicon Valley and high tech for more than thirty years, is author of questionnaire, 20+ books and is a regular op-ed contributor to language, The Wall Street Journal . He is questionnaire also an associate fellow at from Civilian to Front Combat Soldier: A Thematic Oxford’s Said School of questionnaire, Business. The Transition From Civilian Line Soldier: Analysis! 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