Tuesday, March 18, 2014

Software substitution

Bill Gates talks about the future of jobs and how technology may reduce the number of jobs for people with only a basic skill set. He calls it "software substitution."
"When people say we should raise the minimum wage. I worry about what that does to job creation ... potentially damping demand in the part of the labor spectrum that I’m most worried about."
Raising the minimum wage will simply accelerate the payback period for buying that robot or automated software tool. Image trying to lower the minimum wage in the future to make hiring people more attractive coupled with any amount of inflation - good luck unringing that bell.

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