Do machines cause unemployment?
The belief that machines cause unemployment has been around for a long time. On the prairies, it usually bubbles quietly below the surface amidst the small talk about jobs or falling commodity prices. At first glance, the idea seems believable. People are constantly inventing new machines and technology which either increase a worker’s productivity, or replace the worker entirely. One piece of today’s farm equipment can easily do the work that required ten men a century ago. The casual observer can easily draw the conclusion that machines cause unemployment. But when examined closely, the myth leads to preposterous conclusions, as explained by economist Henry Hazlett in his work entitled, “Economics in One Easy Lesson”. Following, are excerpts from Hazlett’s observations. – – – – – – – – – Adam Smith, a Scottish economist who lived in the 1700’s, tells of a pin maker who, in the early days before technology, could only manufacture one pin a day. With the use of machinery however, he co
