Machine-Sourcing

Mark Thoma posts an summary of an article about Machine-Sourcing:

As the world develops in the long, long run, and as countries move from "developing" to "developed," I still see a chance that the growth in the demand for the services that the unskilled provide will outstrip the growth in the supply. That doesn't mean that the wealth gap won't continue to increase, and that there won't be any problems associated with the growing gap between those at the top and those at the bottom, but I'm not so sure that wages will fall such that absolute living standards will decline as predicted above. ...

The problem is that the productive forces are being developed to such an extent that there will a majority of Department I workers and a minority of Department II ones. Since machines do nor produce surplus labour, the rate of profits in Department II will approach zero. The surplus labour will have to be provided by Department I workers who are not easily replaced by members of the industrial reserve army.

In my own case, my specialist knowledge consists of three (3) parts:

1. Educational knowledge (minimum of five (5) years' university education)
2. Technical knowledge (minimum of ten (10) years' experience in the computer industry
3. Client knowledge (minimum of three (3) years' experience with a client)

The idea that I can be quickly replaced by someone else exists as a fantasy. Being a Department I worker means that there is a considerable investment of knowledge is needed in order to replace me (mainly the three (3) years with a client). This latter knowledge is usually invisible to managers because it is the experience of how the systems actually work as opposed how they are thought to work. And it is undigested knowledge of myth and anecdote that is quickly acquired and filed away as problems are solved.

For a Department I worker to unemployed for a long time means that they will stay unemployable because the technical knowledge needs to be refreshed and tested on a regular basis. The knowledge needed to be viable is changing rapidly. There is a major sfotware release every 18 months to two (2) years. One cannot stay up with the pace unless one is employed.

The downside of this is that I have to predict the future and ensure that my knowledge is current and relevant. I cannot afford to rely on my employer to provide training. This I have to do myself.

The layer of management has nearly become irrelevant to my ordinary day. I deal directly with other experts to solve problems. Managers are mainly concerned with bugets and hiring. I am part of a self-managing team: we set our own priorities and tasks. These still have to be relevant to the client. This means that we have to maintain an overall view how our function contributes to the success of the business.

This widening of exposure to the business means that we are moving slowly towards a worker managed business. Narrowly-focussed task workers are inadequately prepared to take over a business. It is the workers who have an end-to-end understanding that are to able to form the backbone of a socialist enterprise.