I recently attended the Master Investor conference, held at the Business Design Centre in Islington. One of the speakers was the highly successful investor Jim Mellon who gave a succinct summary of world markets as they stand today. But what particularly caught my attention were his remarks towards the end of his speech, when he touched upon the effects that robotics will have upon the modern world.
This is apparently to be the subject of his next book, and he did make it clear that he had yet to map out all the implications. However his central argument is that the increasing use of robots in factories (particularly in developing countries), and the imminent arrival of more intelligent machines that can – for example – drive cars, will inevitably lead to unemployment at levels far beyond those we are experiencing in the current recession. As Mellon pointed out, when £25,000 will buy a robot that doesn’t need sleep or holidays, never makes a mistake and will never draw a pension, why continue spending similar amounts every year to employ a human being who does and will? Continue reading