Tag: capital and labor

WSJ: Drive-Thru AI Chatbot vs. Fast-Food Worker

In this video from The Wall Street Journal, senior personal tech columnist Joanna Stern examines the performance of an AI chatbot versus a fast-food worker. Are these two inputs clearly substitutes or are their complementarities that could be exploited by companies? If the goal were only to produce the same amount of food as before with lower costs, we might expect to see a reduction in fast-food workers. However, this technological improvement may end up increasing output and subsequently requiring more tech and more labor.

Thanks to John Raby of Thorton Academy for the clip suggestion!

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The Office — Automated Assitant

A new phone system can replace many of Pam’s tasks. She normally spends her day connecting incoming calls to different sales people and departments, but this new phone system will make it so that anyone calling Dunder Mifflin can dial directly to the department they want. She thinks she still has value at putting our candy, but then realizes a vending machine can do that as well.

Jim swoops in to save Pam and play the role of Michael Scott, the branch manager. Jim is in love with Pam and doesn’t want to see her fired, so he acts like Michael and tells the salesman that they aren’t interested. He’s almost busted, but luckily gets away with it.

Thanks to Richard McGrath for the clip submission!

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Superstore — Handheld Automation

Corporate has created new devices for customers to use that will allow them to look up where items are located in the store, scan the items, and pay for their total. The employees quickly point out that the device essentially replaces the workers and they are left wondering what that means for them. Dina tries to point out the relationship between ATMs and bank tellers, although she doesn’t have it exactly right.

At the end of the clip, Amy points out that corporate has also asked the stores to cut back employee hours, which implies that the new machines are replacing some of the labor in the store.

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Business Insider — Robotic Kitchen

This Boston restaurant (Spyce) uses robots to cook food for customers and can cook your meal in 3 minutes or less.  Customers order from electronic kiosks at their table and a screen displays which robot station is preparing the diner’s dish. The woks are designed in a way to ensure consistency. The only labor used in the kitchen is the “garden manager” who is responsible for adding toppings and ensuring presentation. The bowls are priced at under $8.

Thanks to Peach for the clip suggestion!

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World Economic Forum — Alibaba’s Automation

A look inside the robotic warehouse of Alibaba in Huiyang, China. The robots pick up the physical items and deliver them to the workers who are in charge of sorting the orders before shipment. The robots can carry about 1100 pounds of good around the warehouse floor all while not bumping into other robots because of a laser guidance system.

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Business Insider — Self-Driving Garbage Truck

Volvo has recently unveiled self-driving garbage trucks in Sweden that are designed to be operated by only on single garbage collector. The trucks match the pace of the garbage collector to allow for differences in worker characteristics. This is just one of the many ways in which automation improves the efficiency of tasks.

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Rick & Morty — What’s the Point of Automation?

 

 

Rick’s quote in this episode is as followed, “The point of automation is to reduce cost and labor!” He says this because his robot’s dialogue disappointed him. This directly relates to economics, labor economics in particular, as when a firm’s supply of labor becomes too inelastic they will substitute capital for labor in order to reduce costs and increase profits. The firm, or Rick, is substituting capital for labor as we saw when examining firms’ reactions to labor markets.

Thanks to Justin Cooper for the clip and description!

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Dangerous Missions: Timber!

Documentary about the many dangers lumberjacks face while doing their work. The impact of the technological advances of chainsaws over the last century in the lumber industry is also highlighted. Great discussion for capital/labor decisions plus scale/substitution effects when capital prices change.

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