Don’t Rage Against the Machine, says Bank of Canada

Don’t Rage Against the Machine, says Bank of Canada
Profile photo of Caleb McMillan

carolyn-wilkinsThat robots will replace jobs and therefore we need a basic income guarantee is perhaps one of the most uncreative ideas imaginable.

And there are two kinds of people in this world — people creative enough to think outside the box and those who aren’t. 

Amazingly, Bank of Canada technocrats sometimes fall into this former category.  Senior Deputy Governor Carolyn “Chaos” Wilkins said robotics will “re-energize underwhelming productivity” in Canada.

After all, you can’t debase the wages machines don’t earn.

Of course, all this hoopla about job losses stems from economic illiteracy. There are always going to be people needed to program and code these robots. Many new technologies have threatened older industry establishments without causing mass starvation and economic deterioration.

The argument for a basic income guarantee is an argument for free money you didn’t earn. Full stop.

So where’s the outrage over the job losses in the candlestick making industry? What about horse-and-buggy taxi carriages?

Why not mimic the old Soviet Union and have the state employ people to endlessly produce steel for no reason?

Why not do one better than the communists and have people believe they are truly doing business in a market while taxing and regulating everything and everyone for desired effect?

That seems to be the way Canada is going, unintended consequences and all.

The Bank of Canada warns of a future where robotics make our lives better, but also create unemployment and income inequality.

Insomuch that robots create unemployment, those people will find new jobs. As for income inequality, there is nothing wrong with that.

A recessionary future has more to do with the Bank’s monetary policy than it does with robots takin er jerbss.

But I can’t help but agree with the BoC technocrat:  “Innovation is always a process of creative destruction, with some jobs being destroyed and, over time, even more jobs being created… We’ve seen this process in action throughout history.”

We’ve also seen where state interventions in the economy have led.

Anymore taxing or regulating of economic actions and soon the whole system will become an all-around bureaucratic order.

And we’ve seen that process in action throughout the 20th century. It wasn’t pretty.

Far from it.

Profile photo of Caleb McMillan

Caleb McMillan is a writer that lives in Vancouver, British Columbia.

More in Blog

Unilateral Free Trade Would Benefit All UK Citizens

Patrick BarronMarch 21, 2018

The EU elite are ignorant of the true meaning and importance of “comparative advantage”

Patrick BarronMarch 15, 2018

Don’t Trust the “Trump Boom”

Taylor LewisFebruary 20, 2018

Inflation has Central Banks Playing Musical Chairs

Doug FrenchFebruary 8, 2018

What If Things Were Different?

Taylor LewisJanuary 30, 2018

Why Comparative Advantage Matters

Danny LeRoyJanuary 29, 2018

Can an Economy Advance Without Savings?

Patrick BarronJanuary 20, 2018

Bastiat and the Hubble Space Telescope

Patrick BarronJanuary 8, 2018

The Economic Benefits of Ending the Fraud of Fractional Reserve Banking

Patrick BarronDecember 31, 2017