yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Automated trucks: Blue-collar disaster or economic win? | Andrew Yang | Big Think


2m read
·Nov 3, 2024

Processing might take a few minutes. Refresh later.

The big misconception about the impact of technology in the workforce is thinking that it's around the corner. Instead, it's been with us for years. If you look at the last 20 years or so, we've automated away 4 million manufacturing jobs in Michigan, Ohio, Pennsylvania, Wisconsin, Missouri, Iowa, all the swing states that Donald Trump needed to win in 2016 and did win.

Then my friends in Silicon Valley and my friends who work in technology know that what we did to the manufacturing workers we are now going to do to the retail workers, the call center workers, the fast food workers, the truck drivers, and then even bookkeepers, accountants, insurance agents, lawyers, and on and on through the economy. So what happened to the manufacturing worker is a very clear sign of what's going to happen to these other workers moving forward.

And I talked a little bit about retail workers, the most common occupation in the economy. Thirty percent of Main Street stores and malls are going to close in the next five years because Amazon is soaking up $20 billion of commerce every year. And many of these workers are making $11 to $12 an hour and don't have a huge savings cushion to be able to make meaningful adjustments.

Being a truck driver is the most common job in 29 states. There are 3 and 1/2 million truck drivers in this country, average age 49, 94% male, average education high school or one year of college. They're making about $46,000 a year right now. It's one of the higher paying blue-collar jobs in this country.

And on the west coast, you have my friends in Silicon Valley who are trying to automate truck driving. And the reason they're doing that is because of the money -- $168 billion in financial incentives for automating away truck drivers. And that's not just labor savings. That's also equipment utilization because a truck never needs to stop whereas human-driven trucks have to stop every 14 hours; fuel efficiency because trucks can convoy together in lower wind resistance, and so robot trucks would be able to get places with less fuel, fewer accidents because truck drivers right now kill about 4,000 other motorists a year in accidents and that number would come down if you had automated freight.

So there's a very, very powerful set of incentives to try and automate truck driving as an occupation. Again, though, you have these 3 and 1/2 million truckers, and only 13% of them are unionized. So there's not going to be a grand negotiation. So imagine being a trucker who's taken out a $50,000, $60,000 loan to lease your truck and it's your livelihood and your means of support, and then all of a sudden, you have to compete with a robot truck that doesn't need to sleep.

And that is what is around the corner for hundreds of thousands of truckers in this country in the next five to 10 years when robot trucks start to hit our highways. And Amazon is testing out robot trucks as we speak, right now in the Midwest...

More Articles

View All
Models of voting behavior | Political participation | US government and civics | Khan Academy
What we’re going to do in this video is start to think about voting behavior. In particular, we’re going to start classifying motivations for why someone votes for a particular candidate. I’m going to introduce some terms that will impress your political …
Bill Ackman Asks Warren Buffett and Charlie Munger How To Analyze Financial Statements
Thank you Bill Ackman from New York New York for the handful. Triple-A rated companies AIG, Fannie Mae, Freddie Mac, and MBIA are under formal investigation for accounting shenanigans and are in the process of restating their financials. Like Charlie said…
Steve Varsano talks about his experience in aviation
When you’re selling a jet for a company, that company is either moving up to a bigger, newer jet, or the company’s having problems and they’re selling the jet and they’re getting out of the business of operating their own corporate jet. If it’s the latte…
How To Be The Next Elon Musk According To Elon Musk
So, uh, one of the, I think, most common questions I hear young people, ambitious young people, ask is: “I want to be the next Elon Musk. How do I do that?” Um, obviously, the next Elon Musk will work on very different things than you did. But what have …
Stock Splits are Secretly Pumping the Stock Market
Stock splits, they’re supposed to be totally irrelevant, right? They don’t change anything about the company, they don’t change anything about the valuation, they don’t change anything about the investing thesis. Well, bizarrely, stock splits are somehow …
My Guy Spier Interview: Investing During an Economic Crisis
Right now, the global economy is facing a crisis on the scale not seen since the Great Recession of 2008. But what on Earth do we do about it as investors? The annual inflation rate in the United States sits at a staggering six percent. Interest rates are…