Economy News – Zero Hedge – New Study Says Robots Took All Of Detroit’s Jobs, Not Mexico

Zero Hedge – New Study Says Robots Took All Of Detroit’s Jobs, Not Mexico
by Tyler Durden Mar 28, 2017 10:40 PM
As Trump gets ready to renegotiate NAFTA and impose tariffs on companies looking to outsource production to Mexico, a new study from MIT and Boston University suggests that industrial robots, not Mexico, may be the bigger factor contributing to the high levels on unemployment in the Midwest.
Entitled “Robots and Jobs: Evidence From US Labor Markets,” the authors of the study found that the addition of 1 robot per 1,000 workers results in an 18-35 bps reduction in the employment-to-population ratio and 25-50bps reduction in wages.  Per Bloomberg:
One additional robot per thousand workers reduces the employment-to-population ratio by 0.18 percentage points to 0.34 percentage points and slashes wages by 0.25 percent to 0.5 percent, based on their analysis. To put that in context, the U.S. saw an increase of about one new industrial robot for every thousand workers between 1993 and 2007, based on the study.
“The employment effects of robots are most pronounced in manufacturing, and in particular, in industries most exposed to robots; in routine manual, blue collar, assembly and related occupations; and for workers with less than college education,” the authors write. “Interestingly, and perhaps surprisingly, we do not find positive and offsetting employment gains in any occupation or education groups.”
Worth noting: the authors estimate that robots may have increased the wage gap between the top 90th and bottom 10 percent by as much as 1 percentage point between 1990 and 2007. There’s also room for much broader robot adoption, which would make all of these effects much bigger.

Study – Robots and Jobs: Evidence from US Labor Markets
Daron Acemoglu, Pascual Restrepo
NBER Working Paper No. 23285
Issued in March 2017
As robots and other computer-assisted technologies take over tasks previously performed by labor, there is increasing concern about the future of jobs and wages. We analyze the effect of the increase in industrial robot usage between 1990 and 2007 on US local labor markets. Using a model in which robots compete against human labor in the production of different tasks, we show that robots may reduce employment and wages, and that the local labor market effects of robots can be estimated by regressing the change in employment and wages on the exposure to robots in each local labor market—defined from the national penetration of robots into each industry and the local distribution of employment across industries. Using this approach, we estimate large and robust negative effects of robots on employment and wages across commuting zones. We bolster this evidence by showing that the commuting zones most exposed to robots in the post-1990 era do not exhibit any differential trends before 1990. The impact of robots is distinct from the impact of imports from China and Mexico, the decline of routine jobs, offshoring, other types of IT capital, and the total capital stock (in fact, exposure to robots is only weakly correlated with these other variables). According to our estimates, one more robot per thousand workers reduces the employment to population ratio by about 0.18-0.34 percentage points and wages by 0.25-0.5 percent.

Zero Hedge – The Robots Win: Blackrock Bets On Computers Over Human Stock Pickers, Fires Dozens
by Tyler Durden Mar 28, 2017 6:53 PM
As part of a massive overhaul that has been hinted at in recent months, and was unviled on Tuesday, BlackRock announced a reorganization of its actively managed equities business that will include job losses, pricing changes and a greater emphasis on computer models that inform investments.
BlackRock’s new strategy centers on a view that has been facilitated by the not so stealthy central bank takeover of capital markets in recent years, according to which it is difficult for human beings to beat the market with traditional bets on large U.S. stocks. As a result, at least seven stock portfolio managers are among several dozen employees who are expected to go as part of the revamp.
Instead of handing their funds to other humans for investing purposes, for the first time BlackRock’s Main Street customers will be able to buy lower-cost quantitative stock funds that rely on data and computer systems to make predictions, an investment option previously available only to large institutional investors. This option also virtually assures that the next market crash will be unlike anything ever seen. Some existing funds will merge, get new investment mandates or close.
For now the overhaul is only taking place at Blackrock, and represents the most dramatic attempt to rejuvenate a unit that has long lagged rivals in performance. Clients have pulled their money from the actively managed stock business in three of the past four years even as BlackRock’s total assets climbed to a record $5.1 trillion, according to the WSJ. BlackRock had $275.1 billion in active equity assets under management at the end of December, down from $317.3 billion three years earlier.

Economy News – KWN – Greyerz – This May Crash Europe’s Financial System And Lead To The Next Global Crisis And Collapse

Zero Hedge – Minimum Wage Massacre: Wendy’s Unleashes 1,000 Robots To Counter Higher Labor Costs
by Tyler Durden Feb 28, 2017
Wendy’s chief information officer, David Trimm, said the kiosks are intended to appeal to younger customers and reduce labor costs. Kiosks also allow customers of the fast food giant to circumvent long lines during peak dining hours while increasing kitchen production.
As Dispatch.com reports, the Dublin-based burger giant started offering kiosks last year, and demand for the technology has been high from both customers and franchise owners.

KWN – Gerald Celente: Broadcast Interview – Available Now

KWN – ALERT: Legend Art Cashin Just Issued A Dire Warning
On the heels of another record breaking week for the Dow, legend Art Cashin just issued a dire warning.
Eric King:  “When you look at the stock market, Art, we keep hitting one record high after another on the Dow.  As the market continues to melt-up, do you sometimes step back and say, ‘I’ve seen this movie before and it doesn’t always have a good ending?’”
Art Cashin:  “Well, it’s funny you say that.  I wrote in my comments yesterday about the fact that the Dow being up nine consecutive record closes has only happened five times since 1897.  And in virtually all of those cases it didn’t end well.  It didn’t end badly immediately after the streak was broken but a year or so later there were problems.  The most recent time we’ve seen it they had 12 records in a row in early 1987, (laughter) and we all have some scars from what happened later in 1987.  It also happened in 1929.

Thomas Dishaw – Barclays bank goes down over the weekend, millions unable to access cash or use credit cards
A server crash on Barclays network Saturday gave many customers an unwanted glimpse into the chaotic future of a cashless, automated society. The crash left many unable to access their funds, unable to use internet or telephone banking and caused many cash machines to go down as a result of hardware failure.
Customers noted that their debit cards were declined even for small purchases like a 17p banana. Many took to social media to express frustration over the inability to withdraw money from in ATMs or be able to pay for purchases in shops and pubs around the world. Some reported being stranded because they could not access funds to buy tickets to return home. Others expressed desperation of not being able to feed themselves or their families.
Panic set in when Barclay’s admitted they had not idea how long it would take to fix the issue, even speculating that it could take until Monday. The bank released a statement saying it was “working to fix” a problem and advised customers to use other banks’ cash machines. It added that telephone banking and in-branch payments were also affected and apologized “for any inconvenience.” Barclays also reiterated the fact that no customer will lose out financially because of the hardware crash and any relevant fees would be reimbursed as soon as possible, another concern that some users called out.
There is still no word how many of Barclay’s 15 million card customers were affected by the outage. There is no doubt this experience echoes the fears and concerns many still have of completely cashless societies. Becoming dependent on cards leaves us vulnerable to situations like this. And the increase of automation results in fewer bank branches where you can go in and manually withdraw money from your account.
Globalists have indoctrinated many of us to believe that electronic currency is more convenient and easier to access than paper currency. But the advantage for cash remains that it is tangible and can be used to trade goods at face value, whereas we see in this scenario that if the value on your debit or credit card cannot be accessed, it doesn’t exist.

KWN – Greyerz – This May Crash Europe’s Financial System And Lead To The Next Global Crisis And Collapse
With continued uncertainty around the globe, today the man who has become legendary for his predictions on QE, historic moves in currencies, spoke with King World News about why Target2 may crash Europe’s financial system and lead to the next global crisis and collapse.
100 Years Of Massive Credit Expansion
To own gold is not climbing a wall of worry. For anyone who understands the problems that the world is now facing, physical gold ownership gives peace of mind and the best insurance that money can buy. So why are less than 0.5% of world financial assets invested in gold and gold stocks? There are several reasons for this. Firstly, 100 years of massive credit expansion and money printing have mainly inflated the asset classes that investors understand, be it stocks, bonds or property. Also, financial repression, which in layman’s terms means manipulation, has totally distorted most financial markets. With the help of derivatives, governments, central banks, investment banks and hedge funds can create false markets in most investment areas. If a market is massive and global, like currencies, they are very hard to manipulate, except if several major sovereign states collude. But in a small market like gold and silver, it is extremely easy to manipulate prices. Even more so when a lot of it is done with the assistance and blessing of governments…

Slavery in the Chocolate Industry

Although slavery is no longer legal there are still millions of people living in slavery today. One place and industry where slaves still exist is the cocoa industry. This documentary takes a deeper look at that industry with disturbing and challenging eyes.

Robots help counter soaring labor costs

Robots help counter soaring labor costs

By WEI TIAN in Shanghai ( China Daily )Updated: 20131114 00:43:59

Zhejiang province is to invest 500 billion yuan ($82 billion) over the next five years to encourage manufacturers to adopt more robots to overcome the short supply and high cost of labor. 

The program is underway and will help at least 5,000 companies a year, a source with the investment division of the Zhejiang Economic and Information Commission told China Daily, without giving details. 

Replacing humans with robots is the most effective way to tackle the labor shortage and rising labor costs, the commission said.

From 2005 to 2012, average labor costs in Zhejiang, a hub for private manufacturing enterprises, almost tripled from 14,847 yuan to 41,370 yuan a year, with an annual increase of nearly 16 percent.

In a survey conducted by the commission in May, 75 percent of respondents said rising costs were the main reason for switching to robots.

As factories used more robots, the proportion of surveyed enterprises with labor shortages dropped from 80 percent last year to 56.4 percent. The survey was based on replies from 515 enterprises that have introduced robot workers.

More than 60 percent of the enterprises surveyed have reduced production line employees by at least 10 percent, while 16 percent of the firms have cut their production jobs by more than 30 percent. Meanwhile, robot workers have helped these factories improve productivity by more than 10 percent.

If such a strategy is adopted by large enterprises throughout the province, the labor shortage will be reduced by 700,000 workers, saving 29 billion yuan in labor costs a year, the commission said.

Li Gang, president of the robotics sector in China at ABB, a leading supplier of industrial robots, said China has become a “world factory”, but with increasing awareness of health and safety the manufacturing sector faces challenges in the workplace.

“Replacing workers with robots in dangerous and unhealthy working environments and using them for more creative jobs will be an inevitable choice for China’s manufacturing sector,” Li said.

He was speaking at a forum during the 15th China International Industry Fair in Shanghai last week. 

Li said robot sales in China accounted for 21 percent of the world’s total in 2012, and he estimates that the country will become the largest robot market in the next year or two.

Experts ruled out the possibility of robots triggering job losses.