Are recent massive layoffs signs of looming global soceital challenges caused by disruptive technologies?

For the last few decades, Bill Gates has been actively involved in global health initiatives, and he has shared his thoughts on various topics related to global soceital challenges such as pandemics, and technology.

Recent massive layoffs by big companies reminded me of his opinions on upcoming global soceital challenges he raised and the possible solutions to deal with them. I try to remind readers his speech on possible health challenge that stayed for years without being given due attention until the COVID pandemic rocked the world at the end of 2019.

In 2015, on TedTalk, Bill Gates spoke about preparedness and response measures, i.e., on the need for early detection, rapid response, and the development of tools and strategies to address global health challenges such as pandemics and investing in integrated health systems worldwide. He has emphasized the importance of investing in global health infrastructure, early detection systems, and rapid response capabilities to address the challenges posed by infectious diseases. Gates has also stressed the need for collaboration between governments, organizations, and the private sector to strengthen global health security.

Fast forward … in 2019, COVID rocked the world and exposed the level of unpreparedness of all parties, despite the speculation. Surprisingly, some conspieracy theorists have even gone as far as blaming Gates.

Bill Gates also expressed his opinion in the potential of technology such as automation, robotics and AI and their impact on employment. More specifically, he talked about levying taxes on robots (and automated systems) that take over human jobs (that would other wise be the source of tax income if humans continue on that job). Bill Gates said in an interview with Quartz (you can also find it on YouTube):

“The human worker who does, say, $50,000 worth of work in a factory, that income is taxed and you get income tax, social security tax, all those things. If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level.”

Although there are some efforts on how to deal with automation taking jobs, not much has moved so far. Time is ticking and his speculation on the adverse effects of automation and AI on employment (and therefore income inequality) also seems to be ignored until it causes irreversible damages.

Even though it is not as AI apocalypse claim, it is clear that automation, robots and AI are taking jobs. Recent studies show that automation, robots and AI are actually taking jobs. So far, automation and robots were primarily affecting job of blue-colar workers. However, recent massive layoffs by big companies indicate the effects are not limited to that.

Now the open question is whether the lost jobs also mean tax income lost. Debates regarding the taxation of robots or automated systems are embedded within broader dialogues concerning the implications of automation on employment, economic structures, and societal welfare. Advocates for taxing robots posit that it could serve as a means to finance social programs and alleviate economic disparities arising from automation. Conversely, opponents contend that implementing such taxes may hinder innovation and impede the creation of jobs.

So, the question is:

Should the world wait for the time when automation creates sever income inequality, breaks tax and social security revenue structures?