Sunday, December 20, 2015

Millions of Disappearing White Collar Worker Jobs


Ned K.


Australian-born and New York-based venture capitalist Jeremy Philips does not have much of a "Christmas cheer” message this year. He is a key investor in Wealthfront, the world's largest automated investment service which already has $2.1 billion in client assets.

"It is inevitable that trillions of dollars will be managed algorithmically," he is quoted as saying in an interview with the Australian Financial Review.

What this means is that robot financial advisers will replace human financial advisers with a predicted loss world wide of 25 million currently well paid jobs. Phillips is not worried about the loss of 25 million financial services jobs. Why not? He says the 25 million will dwarf the millions of factory jobs being replaced by robots and automation already.

Marx expained that one of the historical roles of capitalism was to revolutionise the means of production. The next wave of the impact of technology on people's lives under capitalism has already commenced.

Under socialism, technological advances will be introduced in a way to benefit the people. One way is to balance technological advance with a reduced number of working hours on full pay for the people.

Under capitalism, capitalists have in recent times made more use of part-time and casual workforces, but on miserable wages. The advances in robotics in the financial services industry are estimated to increase productivity by 45-55 per cent according to the McKinsey Global Institute.

What all this means for the anti-imperialist struggle at this point in time is that millions of white collar financial services will be drawn in to the struggle to defend living standards Many will organise to maintain a reasonable standard of living.

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