Saturday, March 21, 2015

Self-Driving Technology May Create Mass Unemployment

Self-driving cars will soon be a reality, and frankly the prospect is quite exciting. To me the idea of being chauffeured around by my vehicle, freeing me to do other tasks and get work done whilst in my car is simply fantastic.

For all of those folks who are stuck in their cars for 2 hours a day, commuting back and forth to work. What if this time could be put towards actually getting work done? Getting your phone calls and morning meetings out of the way. Instead of leaving my job at 5, I could leave at 3...and work on my way home.

So how soon could self-driving cars become the new normal? Well, Elon Musk, CEO of Tesla Motors, confirmed that by Summer of 2015, The Tesla Model S would be able to drive itself on highways. Mr. Musk had mentioned this fab new feature during his announcement in October of 2014 regarding Tesla and the introduction of the Dual Motor Model S sedan.

A car that can drive itself on the highway? That is pretty cool. But how much longer until cars can completely drive themselves? Well, no one truly knows the answer to that, but I bet it's a lot closer than anyone realizes.

In 20 years...? Absolutely. There is no question in my mind that in 20 years, virtually every vehicle on the road will be self-driving. There are simply too many benefits and the technology is progressing at a feverish pace. But could it happen sooner?

It could. In fact, in ten short years we could be well on the way to self-driving cars. But whether its 10 or 20 years, the impact will be felt most acutely by those who earn a living in the transportation and delivery sector.

According the the US Department of Transportation, 1 out of every 7 jobs in the US is related to transportation. More than just drivers, there are mechanics and people who build vehicles, etc. How many truck drivers will lose their jobs, or have their income seriously reduced when trucks can drive themselves back and forth across the country? Especially if they can do it safer and more efficiently.

It's only a matter of time before this happens. And, once cars can drive themselves...most people probably won't need to own one. There will be car sharing services. I predict that once self-driving cars become mainstream, auto sales will drop significantly. There's more manufacturing jobs lost.

This technology will be incredibly disruptive. This is because it's going to happen very quickly. There won't be time for the benefits of self-driving cars to create enough new jobs to absorb all of the jobs that will be lost due to self-driving technology.

Most people who drive for a living earn a decent income. They're not getting rich, but its not bad. Some do quite well. When you're out on the road driving...how many commercial vehicles do you see? I see quite a few.

So, while I'm hopeful for a self-driving future, I'm also wary for all those folks who are going to end up losing their livelihood to this emerging technology.


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