"Do Machines Evict Workers? Or Employ Them?" by Shoaib Kiani

Man is striving to make the arduous things easier. In this regard, he has created a world of machines. Machines have surrounded us and the inventions are still in evolution. I have hundreds of machines in my house just like oven, fridge, fan, TV, door locks, and even the needles. Machine is anything that reduces the human effort. Wherever we go and whatever we do, machines help us. In today’s discussion the word machine will mean the machine used in production process. Definitely, they are also helpful in reduction of human effort. Machine faster the production process that is retarded by the man with empty hands. I extol the work of scientists and engineers for the evolution of machines. They are making the life so easier that it was not before.

The labor earn what they effort for but the machines in production process reduce human effort. When a producer introduces a machine, it swap a number of workers. To elucidate this discussion let us take an example of a elevator that is used in a warehouse to drop heavy bundles at third floor. It shifts one ton of cotton in a couple of minutes. Ten workers (Hypothetically) shift the same weight in an hour. In that case, the warehouse owner uses this lucrative input. The workers become unemployed and warehouse owner installs a lift in his warehouse it saves time as well as money. Moreover, frees some space to keep more cotton.

 From this side of picture we see extensive number of workers being unemployed. 

On the other side, machines are creating employment. Economists use the terms “backward and forward linkages” among the industries. We will also use these linkages for the explanation of role of machines in creation of employment. To understand these linkages let us take an example of the same weigh lift that unemployed a number of workers in warehouse. Backward linkages of lift cause employment. We will see some labor working in the building and installation process of lift. The steel mill workers are also linked behind this lift building process. Belts, motors and lift wire manufacturers have employed a massive number of workers.  Forward linkages: when some workers are employed as technicians, electricians, and maintenance staff. It has a forward linkage with energy (electricity, fuel etc.) as well, that also employs a number of workers.  Some warehouses appoint lift operators. .  A number of workers is engaged in loading and unloading the lift. From this angle of picture, we see three or four time labor employed linked with one lift.

Let us take another example of use of machine instead of obsolete ways of production. In a traditional cultivation process, a small-scale farmer uses a pair of bulls to cultivate his fields. The only input to keep these two bulls in working position is their feed. Only farmer or may be one or two workers employed in cultivation.  Now what happens when he uses a tractor? Tractors and automobile manufacturing is one of the major industries engaging a massive part of population in production. Maintenance and repairing is also a wide industry employing a noticeable part of population. Spare parts industry is also linked with tractors. Another linkage of tractor is with fuel industry; oil refineries and oil companies play an important role in employment. If we put out machines from the world fuel does not mean anything to human being even we cannot burn them without burner.

Now a question rises, if the machines are employing population at a large scale, then why still unemployment exist in developing countries? This has a logical reason the developing countries do not enjoy the backward linkages of machines. Most of the machines are imported from the developed world. Developed countries employ their raw material resources and labor force in manufacturing of machines. They export these machines and earn reserves. They also use these machines in their domestic production and enjoy forward linkages as well.

Developing countries normally export their raw materials and labor force to developed world. They only enjoy the forward linkages still machines are employing a massive percentage of population. Developing countries can get the benefit from machines only when they manufacture the machines. It is necessary for a country to develop its “machine making” capacity. This is the way to reduce the unemployment for long term, instead of applying Philips theory, that encourages a rise in prices to create short-term employment.  

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