32: Machinery Reduces the Demand for Labor
One of the most common complaints about machinery is that it replaces human workers - which is in fact entirely the point. A machine that does the work of ten men saves considerable expense and enables the producer to lower the price of his product in the market, which is a benefit to the consumers. But his reduced need of labor eliminates the incomes of those who were previously needed to perform tasks that are done, faster and better, by machinery.
As a result, those who imagine themselves to be concerned with the welfare of society are opposed to the use of machinery: their interest is in protecting the income of the worker, and they do not seem to fathom the damage done to the consumer (EN: more aptly, they prefer to pretend not to understand).
The welfare of a man depends on the efficient use of his time. When he produces more, he can consume more - and when he has all that he requires, he can then enjoy the benefit of leisure time because he needs to spend less time in production to have a sufficient amount for consumption.
The same is true of a society: the more efficiently the necessities of life can be produced, the less time it must spend in aggregate producing them, and only then can apply its resources to developing comforts and luxuries, pursuing arts and knowledge, and other activities other than those required for subsistence.
(EN: It would seem then that in time, all of society would advance to the point where people worked very little and enjoyed very much - but while satisfying human needs requires a very small amount of resources, our desires are limitless and the pursuit of "more" and "better" keeps modern man engaged in labor for a majority of his time.)
The implementation of machinery does not diminish the quantity of labor in a market - that can only be done by decreasing the population - nor does it necessarily lead to the permanent unemployment of workers. Automation benefits society by an increase in the amount of goods available for consumption and an increase in the amount of labor available for other purposes.
Consider the manner in which the plow influenced agriculture. Fewer men are required to prepare a field using a plow, but labor has not been eliminated altogether - and the men freed from the tedious work of breaking the soil with primitive hand-tools find other uses for themselves. If it were not for the plow, hands would not have been available for weaving, carpentry, smiting, sailing, and the various other professions that contribute value to the people of a community.
He then considers the speed of the transition between manual labor and machinery: it can either be a very fast transition in which machinery immediately replaces manual labor or a slow transition in which tools, then basic machines, then more advanced machines gradually reduce the number of workers needed in a production process.
Certainly, a fast transition has a shock to the economy - a large number of workers are immediately displaced and must find other means of supporting themselves financially, which reduces their negotiating power because they feel that they must accept lower wages out of their desperation to maintain their income. There is at the same time a shock to the market when these workers, deprived of income, have less to spend in their community, which is harmful to merchants.
There is much speculation on this matter, and very few bother about facts when prophesizing the disastrous outcomes of automation. And while Babbage presents a few real-world examples of transitions of various speeds, there are many variables involved, not the least of which is the availability of other employment in a community. And so, no general statement can be made.
Producers can be counted upon to seek the advantages of automation to their own operations by purely financial motives: wherever the cost of labor is so high that automation can enable them to make goods more cheaply, they will avail themselves of its advantages. And this is good for the community, as it increases supply and diminishes cost of the necessities and conveniences of life, improving the standard of living for many consumers at the inconvenience of far fewer laborers.
The working classes are advised to be more circumspect. Any occupation that requires repetitive physical activity that requires little mental attention is one that is likely to be replaced my machinery, and should not be counted upon to be a source of permanent employment. It is highly likely that they are well aware when their employer is considering the use of machinery, so their displacement should come as no surprise when it is eventually installed.
So the best remedy for the workman is to be attentive to developments in his own workplace and other opportunities within his society. Two specific bits of advice are to develop skills that are in demand in other industries so that the transition can be made, as well as ensuring that multiple members of the same family are not engaged in the same profession or industry, as the displacement of all of them at once is highly detrimental.