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RE: Chapter 2: The Luddite Fallacy | Robots Will Steal Your Job, But That's OK

in #book8 years ago (edited)

Milton Friedman went to China where he was escorted around by government bureaucrats. They showed Friedman a canal-building project and he couldn't help but notice the lack of heavy machinery.

Friedman: "Why are all the laborers using shovels? Where are all the machines?!"
Bureaucrat: "You don't understand, this is a job-creation project!"
Friedman: "Oh, I thought you wanted to build a canal. If it's jobs you want, why don't you take away their shovels and give them spoons?"

The point is, it's not jobs that matter. What matters is wealth. The canal will make for more efficient commerce and create more wealth. In this example, the Chinese are shooting themselves in the foot by trying to create more jobs. Digging a hole just to fill it back up does no one any good.

Keep doing what you do! Hopefully we can purge these misconceptions once and for all.