The Jan. 30 letter “A Form of Imperialism” by Sam Barich says columnist Gwynne Dyer’s statement that automation is the cause of unemployment in America is “blatant nonsense.” His attack is in itself nonsense. 

Automation is part of the overall cause: advances in technology, computers, artificial intelligence, etc. The unstoppable advances in technology are designed to increase productivity and profit and to alleviate or eliminate the drudgery of repetitive, labor-intensive work. In the early 1970s, there was talk of coming factories being totally automated such that there would be no need for lighting, heating, air conditioning, restrooms and cafeterias in factories that would run 24 hours a day, seven days a week. Imagine the productivity and savings to the factory owner. 

When China opened up, businesses around the world discovered that everything could be produced cheaper there. Japan, South Korea, Taiwan and Hong Kong moved their labor-intensive manufacturing to China first, followed by European businesses. In the U.S., companies discovered that it would be a lot cheaper to produce in China than to build fully automated factories to compete with Japanese, Korean, Taiwanese and European companies that produce in China. 

In addition, the huge potential market for everything in China means that it would be a lot cheaper to produce the products and sell them cheaper in China than to have the products shipped from the U.S. A clear example is GM’s highly successful and profitable Buick venture in China, following German company Audi’s early inroads in China. Unfortunately, all these facts are not easily known or understood by most Americans. Therefore, it is easy for politicians to simply blame China for taking away American jobs.

What’s more, in today’s globalization, businesses around the world are seeking the cheapest labor sources and they are increasingly moving production out of China and to countries such as Vietnam, India, Bangladesh, etc., and in the future, to Africa. Chinese manufacturers are increasingly embracing automation and building infrastructure in Africa in preparation for manufacturing in Africa.

JOHN CHI
Mt. Lebanon

First Published: February 5, 2017, 5:00 a.m.