Lately, Forbes published an article stating that automation driven by AI technology might be the key to solving issues such as immigration, declining birth rates, and retirement. However, strangely enough, automation is not part of the planned policy solution for these problems. Just like the U.S. federal government faced various issues in dealing with the COVID-19 pandemic, "speed of light" action was not one of them.
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Should automation driven by AI technology be prioritized for investment, like vaccines, rather than the defensive attitude people take towards "automation"? Remember, "speed of light" action was a "public-private partnership initiated by the U.S. government to promote and accelerate the development, manufacturing, and distribution of COVID-19 vaccines, treatments, and diagnostics." Could this serve as a model for investment in AI and automation?
AI and Immigration
For example, instead of using economic arguments to explain why the U.S. (and other countries) need immigrants, why not directly promote economic growth through massive federal investments in automation? Is there an opportunity for a public-private partnership here? Clearly, many companies are advancing automation at a remarkable pace. They hope to save costs and improve profitability by reducing human dependency, and the progress is impressive.
However, the proposed suggestion is to conduct a large-scale public-private partnership to accelerate and focus on automation to fill the economic gap that immigration aims to fill.
AI and Declining Birth Rates
Now let's look at human fertility:
The total fertility rate in the U.S. has dropped by 3% since 2022, reaching an all-time low. This marks the second consecutive year of decline, after a temporary increase of 1% from 2020 to 2021. From 2014 to 2020, the birth rate has been declining by 2% each year. What does this mean? Continuing at this low level of the U.S. total fertility rate, especially well below 2, will lead to a slowdown in population growth, which in turn will lead to a slowdown in economic growth and bring fiscal challenges.
Since 2020, other high-income countries have experienced sustained birth rates below the replacement level of the population, and they have tried to formulate policies to alleviate this trend. Automation can help mitigate this trend, and AI can provide refined efficiency.
Retirement
The same argument also applies to retirement, whether it's early retirement or other circumstances. If there are machines that can replace the non-existent human, what is the harm? Regarding the rapid increase in the number of retirees: "Today, the rate of increase in the number of retirees is astonishing, outpacing the influx of new workers. This trend leads to an unprecedented aging of the U.S. population structure, bringing significant changes to the labor market, economy, and global mobility industry." "The demand for workers remains strong, with about two job vacancies for each unemployed person. With the impending retirement of over 75 million baby boomers, it is clear that employers need to develop robust labor plans to replace the workers who are soon to leave." The challenge of addressing the labor gap is huge. Relying solely on X-generation workers is not enough, many millennials may lack the necessary work experience. Foreign workers may face immigration barriers, and not all roles are suitable for flexible or remote workers. If there is any technology that can solve these problems, it is automation.
Highlight:
🌐 AI can help alleviate economic issues such as immigration, declining birth rates, and retirement.
🌐 Automation can fill the gaps in the economic field and improve efficiency.
🌐 The government could consider investing in automation, like the "speed of light" action, to address a range of economic challenges.