#96 Robots Are Not Coming For Your Job, Part 2: Peter Cappelli

How can we save good jobs?

In part one (episode #95), we spoke with Peter Cappelli of the Wharton School, about the impact of robots and automation on our workforce.  Here in part 2 Peter talks solutions and explains why some of the alarm over the impact on employment is out-of-touch with reality.

Technology is changing how we work, and too many companies are investing much more on technology than in people. Peter says that retraining employees is one solution. 

AT&T agrees. For many years the company has been a major player in new technology,  but as automation changed its workplace many AT&T employees no longer had the skills to run the company’s infrastructure. The solution? Complain about the skills gap?  No. AT&T decided to retrain its 100,000 employees. For the first time AT&T made Fortune’s list of the 100 Best Companies to Work For.

Peter says a good job is really more about “how people are managed, whether you give them control over what they're doing and whether you take care of them."

Credit: Typorama

Credit: Typorama

Some of the most important factors driving productivity are better management. In the 1980's General Motors, invested 7.7 billion dollars  to automate their production system. But the strategy proved to be a costly failure. Toyota, which used a lean management system, was far more successful, proving that sometimes the best investment is in training people.

Government can also help.  The current tax code and accounting principles stack the deck against investments in human capital. Retraining employees counts as a liability on a corporate balance sheet, while investing in equipment counts as an asset. The Federal Government has also spent billions of dollars to develop robots, and technology, that displace workers.

In a recent Washington Post article, Peter wrote: “Changing the tax code and accounting principles to un-stack the deck against investments in employees is far easier and more likely to succeed than any of the other policies under debate.”

#84 Smart Solutions for The New Year

Fresh thinking for the New Year: In 2016 we were exposed to a dazzling range of smart, practical ideas from our podcast guests - from climate change and money matters, healthcare reform, to making room for strangers in our lives.  

 

In this show we start with Rebecca Jarvis, Chief Business, Economics and Technology Correspondent for ABC News. One of her smart money resolutions for the New Year is to be skeptical. Watch out for the know-it-alls and outright charlatans of investing, who pretend to understand how to beat the market. Rebecca also urges borrowers to be aware of the full costs of personal debt.

 

The need to be wary of simplistic slogans and fixes is at the heart of global economist Ruchir Sharma's book, "The Rise and Fall of Nations.” His solution? Look beyond the headlines to long-term trends. Slower growths in the workforce and immigration rates have a big impact on prosperity and growth.  

In the excerpt from our show on nuclear power, Michael Shellenberger, author of An Ecomodernist Manifesto, challenges the views of many environmentalists. He says nuclear is a crucial source of energy that "produces zero air and water pollution." 

"At the end of the day everybody is biased," says John Gable, who joined us to explain the thinking behind AllSides.com.  This news website comes with a left/ center/ right column - showing readers how major events are interpreted by liberal, conservative and centrist media. John urges us to confront our own biases and filter bubbles as we separate truth from fake news.

One forecast for 2017: due to the squabbling in Washington DC, over the role of federal government more solutions will be local. We spoke with obstetrician-gynecologist Rose Gowen, a City Commissioner in Brownsville, Texas. She told us how she was able to reduce high obesity rates using grants, a farmers market and bike trails and other local initiatives. 

Pulitzer-prize winning author, and New York Times journalist, Charles Duhigg talks about how we can improve our bad habits and become smarter, faster, and better. In this clip, we discuss to-do lists, mental models and making the most of our time - in life and in business.