cellio: (sleepy-cat)
[personal profile] cellio
Automated alternatives to humans in the service industry have been around for a while. ATMs were probably the first widespread case of this. The real value of ATMs was the ability to interact with your bank at times when the bank wouldn't otherwise be available. I think ATMs are a real win for that reason, and the only time I visit humans in my bank is when I want to make a deposit.

More recently, I've interacted with automation that is designed to specifically replace humans rather than broadening service. The automated check-out at grocery stores is the big example here. Instead of one cashier per line, stores now need one employee per 4 or so lines. This isn't making things more convenient for customers; unlike ATMs, the scanners are only available when the store is open anyway.

There are practical reasons I tend to avoid the automated checkouts, mostly related to speed. The line for the human has to be about three times as long as the line for the machine before the machine looks like a time-saver. People may get more proficient at scanning and packing over time, of course.

But I find that even absent that consideration, I'm reluctant to use the machine. Doing so helps to eliminate a low-end job that might be the only job the job-holder is capable of doing. Most of the cashiers I see at the grocery store aren't college-age kids looking for spending money; they're middle-aged and sometimes visibly handicapped.

This is not wholly a compassion-based argument; it's also one of expedience. I think we as a society are better off if almost everyone has a productive job. And some people are only capable of the lower-end jobs that are most in danger of being automated away. (Aside: for this reason, requirements for high minimum wages are also a bad idea -- don't make it cost-ineffective to hire people at prices they're willing to work for!)

We cannot avoid automation, of course, and in many cases it's a good thing. I'm no Luddite (she says, typing on her computer :-) ). But I kind of wish that we could focus it a little differently sometimes.

And yes, sometimes the humans are annoying to deal with. Last night I lost close to ten minutes to an inept cashier, and there is one (mentally challenged) bagger who I will never again allow to touch my groceries because he seems utterly bewildered by ideas like "the bread goes on top" (multiple failures). People who aren't capable of doing the job shouldn't hold the job anyway just out of pity. (Giant Eagle was right to fire the guy who was partially eating food and then putting the package back on the shelf, and I don't care that he didn't understand that this was wrong.) But y'know, the machines aren't painless either -- just try to get a scanning error fixed. And for the most part, the people holding these jobs are quite capable and willing to work, and I find I'm rooting for the people over the machines.

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Re: Humans

Date: 2004-11-10 03:00 pm (UTC)
sethg: picture of me with a fedora and a "PRESS: Daily Planet" card in the hat band (Default)
From: [personal profile] sethg
The other significant difference between US health care and the health care of every other wealthy nation (not just Canada) is the amount sucked up by administrative costs, since each doctor or hospital has to follow the varying reimbursement and coverage rules of every insurance company that their patients belong to. According to one study, health care bureaucracy costs Americans about $1,000 per capita per year, while Canadians only spend $300.

A while back, Max Sawicky linked to some paper by a liberal think tank, proposing that the US save money on Medicaid by subcontracting out to countries that have a higher life expectancy than the US but spend less per capita on health care. He said he couldn't tell whether or not the paper was meant as a satire.
sethg: picture of me with a fedora and a "PRESS: Daily Planet" card in the hat band (Default)
From: [personal profile] sethg
Well, I can give another data point for employer stupidity. A few years ago, my wife was hired as a science writer for a center at MIT. When folks at the center wanted more features from their Web site that the standard MIT servers would let them have (e.g., they wanted to make some sections only accessible to their external partners), she installed a Linux box in her office and learned something about system administration. The dynamic part of the Web site grew into this big database-backed PHP system, written by an outside contractor to Jen's specifications.

Then, Jen decided she wanted to quit her job to become a full-time mother (the cost of two kids in day care would just about equal her take-home pay, so she figured she might as well eliminate the middleman). She went about looking for her own replacement. I asked around, and was told by various people in the know that someone with the skills to fill her job could command about 150% of her salary. Unfortunately, her boss wanted to pay Jen's replacement less than they were paying Jen. The person they eventually hired had "Unix system administration" on her resume, but it turned out that she didn't even know the difference between "cd afs" and "cd /afs".

The center hasn't gone out of business, but...

Also note that according to various studies, the best computer programmers can be an order of magnitude more productive than the worst, but they certainly aren't paid an order of magnitude more. I suspect this underpaying is due to a combination of (a) corporations not willing to pay technical workers more than the managers above them in the hierarchy; (b) the bureaucratic imperative of "the more people report to you, the more powerful you are" leads managers to hire several mediocre programmers when they could hire one star; (c) the difficulty of measuring the quality of a programmer's output.

At which point I threw up my hands and acknowledged that the the laws of supply and demand only worked to describe markets on a macro level of earthlings, or on a micro level that was populated by people from some more intelligent planet.

This is the sort of thing that makes me regret that I didn't major in economics. (Youth is wasted on the young, and all that...) "The laws of supply and demand" are for the freshmen. All the juicy research and theorizing about the exceptions to the laws of supply and demand are saved for the grad students.

(And actually, Keynesian macroeconomics is based on the observation that labor markets don't follow the laws of supply and demand in the same way that, say, the market for pork bellies does. Read his General Theory of Employment, Interest, and Money.)

Re: part 2

Date: 2004-11-10 03:40 pm (UTC)
sethg: picture of me with a fedora and a "PRESS: Daily Planet" card in the hat band (Default)
From: [personal profile] sethg
The "negative income tax" was proposed by libertarian guru Milton Friedman in Capitalism and Freedom.

I personally don't think there's anything wrong with such a plan, and I don't think most liberals would, either, but I suspect that a negative income tax would be a hard sell to conservatives and moderates. There seems to be a widespread belief that government welfare should only be given to people who "deserve" it, which entails an intrusive and expensive bureaucracy to separate the deserving from the non-deserving.

(no subject)

Date: 2004-11-10 11:27 pm (UTC)
From: [identity profile] aliza250.livejournal.com
"How can you think about installing flush toilets - do you know how many chambermaids you will put out of work???"

(no subject)

Date: 2004-11-11 12:44 am (UTC)
From: [identity profile] aliza250.livejournal.com
. (The store closest to us (no machine) usually just doesn't have baggers, making the checker both ring up and bag the stuff, which infuriates me.)

The store I use most often usually makes customers bag their own groceries. Each cashier has two slides to send groceries down, so that even if it takes twice as long to bag groceries as to ring them up, the line keeps moving.

Monica, do you use self-serve or full-serve gas? When I'm in a state like New Jersey with no self-serve, it always annoys me to sit in my car waiting for the attendant to get around to pumping my gas and swiping my credit card for me...

Re: (continuing to resist the urge not to argue)

Date: 2004-11-11 03:42 am (UTC)
From: [identity profile] dmnsqrl.livejournal.com
there are far more people looking for work than employers looking for workers

Not trying to be snarky here, but..... isn't that sort of the textbook "supply and demand"?

Re: (continuing to resist the urge not to argue)

Date: 2004-11-11 03:40 pm (UTC)
sethg: picture of me with a fedora and a "PRESS: Daily Planet" card in the hat band (Default)
From: [personal profile] sethg
"Textbook supply and demand" simply states that suppliers will be willing to produce more of something as its price goes up, and that consumers will be willing to purchase more of something as its price goes down. The issue of supply and demand is orthogonal to the issue of monopoly power.

Re: Humans

Date: 2004-11-11 10:39 pm (UTC)
jducoeur: (Default)
From: [personal profile] jducoeur
Do you think nationalized health care is working well in Canada?

Actually, pretty much every balanced study I've seen indicates that Canada's system works a lot better than the one here.

The problem that the US has is an absolutely classic example of market failure. The issue is that the usage of the healthcare is massively decoupled from its pricing, due to the insurance system.

Most people who have real healthcare get it from private insurance carriers, and are paying a more or less flat rate for it. (Yes, there are co-pays, but they're too small to really impact the problem.) This means that the users have a strong motivation to maximize their usage, to get the most for their money. The insurance companies make a lot of noise about trying to drive this down, but in fact have a lot of motivation themselves to allow it, because it lets them raise their prices continuously. So we wind up in an upward spiral, with no real way to arrest it.

Most studies have shown that this system is horrifically inefficient. It is good for precisely one thing: people who have health insurance get remarkably instant gratification for their complaints. But this doesn't seem to lead to better health overall -- in fact, the US falls behind most of the rest of the first world on most longevity and quality-of-life metrics, despite spending something like thrice as much on healthcare as anyone else.

Really, it's just about the worst system one could come up with: having the insurance carriers as intermediaries manages to combine the worst features of the socialist and capitalist approaches. So while I'm a bit leery of simple nationalization, the fact is that almost anything (if decently run) would probably work better than what we've got now.

But I'd rather people take those jobs at the market rate and, if necessary, collect the difference from welfare, than have no job at all and collect all of it.

Careful: a well-designed welfare system is a bit subtler than that. You want them to collect more than just the difference from welfare, or the incentives wind up perverse. Remember, working has costs, in things like travel and childcare, and you want to make sure that someone who is working is making more in net than if they were not working. So you really want a formula that uses a sliding scale, reducing the welfare payments fairly gradually as the income goes up...

Re: theft

Date: 2004-11-12 09:59 am (UTC)
siderea: (Default)
From: [personal profile] siderea
Well, that's true of any system, including Capitalism. There has never been a perfect implementation of any of them.

There is the "no perfect implementation" problem, and then there's the "if you had a 'perfect implementation' and populated it with real people" problem.

Anarcho-libertarianism probably works beautifully populated by Heinleinian rationalists. Heck, the early internet was basically anarcho-libertarian, and it was great. It got colonized and its culture eradicated by capitalists non-rationalists because it had absolutely no defense, but next time we'll build walls.

And then there's the "if you have a 'perfect implementation' populated with real people and it working perfectly.... but sucking mightily."

Totalitarian authoritarianism can "work" "splendidly" (I'm told). It accomodates real people really well. I doubt I would be happy in such a society, no matter how "perfectly" realized the vision was.

As for communism, the specific point I was wondering about was the slacker factor -- why should I do more than I need to when it makes no difference to my level of comfort? Is the Russian you spoke with saying that that's not how it plays out?

The Russian I spoke to is on LJ, should I invite her over?

As to myself, it seems to me there are two kinds of work: the work people would do anyway, and the work you have to pay people to do. Work in the first class is not necessarily any less valuable to society: it includes doctors, scientists, engineers, programmers, artists, librarians, etc. Those people aren't going to slack off simply because they're not necessarily working for money.

People who do work they don't like -- I don't expect many factory workers would do it without pay -- may slack off if compensation isn't contingent.

Then again, it's possible to have a system whereby if you fail to meet the grade, you're not docked pay, you're moved to a less desirable job; and contrariwise, mastery is rewarded with promotion. There are obvious problems with this, clearly.

Perhaps the solution is that "would-anyway" workers should be communistically organized, and everyone else capitalistically.... or is that just what socialism is?

Re: health care

Date: 2004-11-12 06:08 pm (UTC)
jducoeur: (Default)
From: [personal profile] jducoeur
It seems that an insurance company could potentially make a killing (so to speak) by offering coverage against catastrophic loss only, with a significant deductible.

Nope -- this misses the third part of the problem, which I really should have pointed out explicitly. Insurance-mediated healthcare is a problem. *Employer-funded* insurance-mediated healthcare is a much bigger one.

Remember, by now most of us with serious jobs demand high-end health insurance as a perk of that job. This disconnects us even more dramatically from the actual payment of the healthcare, because we're not even paying the full load. I'm paying, what, probably about a third of the actual cost of my health insurance; the rest is picked up by my employer, which is pretty normal. And it's rare for a company to offer multiple health plans -- the hassle of managing multiple plans just isn't worth it to them.

The result is that there's no good way to introduce competition into this marketplace. Sure, an insurance company can introduce competitive rates, but an employer who uses that plan is going to have much more trouble attracting the best employees. There isn't anyone properly motivated to buy this plan: the high-end companies are forced to buy high-end insurance, the low-end companies don't need to buy *any* insurance, and it's still too expensive for individuals, because the whole system is skewed towards the pricey and inefficient high-end plans.

It's really astonishingly messed-up: you would be hard-pressed to come up with a system of more perverse incentives if you tried. It illustrates nicely that governments aren't the only actors capable of introducing massive friction into a marketplace...

Re: health care

Date: 2004-11-12 09:33 pm (UTC)
jducoeur: (Default)
From: [personal profile] jducoeur
True, but at this point not really a compelling argument. The government would actually be hard-pressed to screw it up worse than it is now.

Mind, I'm not convinced that a purely government-run model is necessarily the best -- I suspect that a well-designed hybrid model would likely be better from my POV. But I *am* pretty sure that what we have right now is the worst. The entire point of capitalism -- really the one truly solid argument for it -- is that it's supposed to be efficient. But in this case, due to perverse incentives, it manages to be *remarkably* inefficient...

Re: Humans

Date: 2004-11-13 10:09 pm (UTC)
From: [identity profile] aliza250.livejournal.com
The national health care system in Canada is not the only model available. In fact, it's not even the same model in all Canadian provinces... and there is a big push to privatize parts of the system.

Most of Europe has what is called "two-tier health care" - a public universal system, and (presumably better) private care available for those who want to pay for it.

And one feature that you might want to think about: in Britain, Public Health doctors are public employees, and select from positions where the public health authorities have decided that doctors are needed. In Canada, doctors are all in private practice, with the bills paid by the various provincial health systems. One effect of this is a chronic shortage of doctors in smaller cities and towns, and in rural areas.

Which system would you prefer?

Re: health care

Date: 2004-11-13 10:18 pm (UTC)
From: [identity profile] aliza250.livejournal.com
Catastrophic health insurance plans *are* available. However, the ones I've seen are tailored for people who don't qualify for conventional insurance, and are thus priced astronomically.

Re: Humans

Date: 2004-11-13 11:24 pm (UTC)
From: [identity profile] aliza250.livejournal.com
But what actually seems to happen today is that there is a government-subsidized minimum, in the form of welfare, and most people pay their own way. Why does it work for housing but not for health care?

Housing: there is public housing for (some of) the very poor, those better off can afford to pay their own way, and those in the middle get screwed.

Health Care: there is a publicly funded system that (theoretically) cares for the very poor, those better off can afford to buy into the system, and those in the middle get screwed.

The group in the middle getting screwed is a lot bigger, but the difference isn't as big as you think.
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