Some people believe labor-saving technological change is bad for the workers because it throws them out of work. This is the Luddite fallacy, one of the silliest ideas to ever come along in the long tradition of silly ideas in economics. Seeing why it's silly is a good way to illustrate further Solow's logic.The original Luddites were hosiery and lace workers in Nottingham, England, in 1811. They smashed knitting machines that embodied new labor-saving technology as a protest against unemployment (theirs), publicizing their actions in circulars mysteriously signed "King Ludd." Smashing machines was understandable protection of self-interest for the hosiery workers. They had skills specific to the old technology and knew their skills would not be worth much with the new technology. English government officials, after careful study, addressed the Luddites' concern by hanging fourteen of them in January 1813.The intellectual silliness came later, when some thinkers generalized the Luddites' plight into the Luddite fallacy: that an economy-wide technical breakthrough enabling production of the same amount of goods with fewer workers will result in an economy with - fewer workers. Somehow it never occurs to believers in Luddism that there's another alternative: produce more goods with the same number of workers. Labor-saving technology is another term for output-per-worker-increasing technology. All of the incentives of a market economy point toward increasing investment and output rather than decreasing employment; otherwise some extremely dumb factory owners are foregoing profit opportunities. With more output for the same number of workers, there is more income for each worker.Of course, there could very well be some unemployment of workers who know only the old technology - like the original Luddites - and this unemployment will be excruciating to its victims. But workers as a whole are better off with more powerful output-producing technology available to them. Luddites confuse the shift of employment from old to new technologies with an overall decline in employment. The former happens; the latter doesn't. Economies experiencing technical progress, like Germany, the United Kingdom, and the United States, do not show any long-run trend toward increasing unemployment; they do show a long-run trend toward increasing income per worker.Solow's logic had made clear that labor-saving technical advance was the only way that output per worker could keep increasing in the long run. The neo-Luddites, with unintentional irony, denigrate the only way that workers' incomes can keep increasing in the long-run: labor-saving technological progress.The Luddite fallacy is very much alive today. Just check out such a respectable document as the annual Human Development Report of the United Nations Development Program. The 1996 Human Development Report frets about "jobless growth" in many countries. The authors say "jobless growth" happens whenever the rate of employment growth is not as high as the rate of output growth, which leads to "very low incomes" for millions of workers. The 1993 Human Development Report expressed the same concern about this "problem" of jobless growth, which was especially severe in developing countries between 1960 and 1973: "GDP growth rates were fairly high, but employment growth rates were less than half this." Similarly, a study of Vietnam in 2000 lamented the slow growth of manufacturing employment relative to manufacturing output. The authors of all these reports forget that having GDP rise faster than employment is called growth of income per worker, which happens to be the only way that workers "very low incomes" can increase.
Once there were three tribes. The Optimists, whose patron saints were Drake and Sagan, believed in a universe crawling with gentle intelligence—spiritual brethren vaster and more enlightened than we, a great galactic siblinghood into whose ranks we would someday ascend. Surely, said the Optimists, space travel implies enlightenment, for it requires the control of great destructive energies. Any race which can't rise above its own brutal instincts will wipe itself out long before it learns to bridge the interstellar gulf.Across from the Optimists sat the Pessimists, who genuflected before graven images of Saint Fermi and a host of lesser lightweights. The Pessimists envisioned a lonely universe full of dead rocks and prokaryotic slime. The odds are just too low, they insisted. Too many rogues, too much radiation, too much eccentricity in too many orbits. It is a surpassing miracle that even one Earth exists; to hope for many is to abandon reason and embrace religious mania. After all, the universe is fourteen billion years old: if the galaxy were alive with intelligence, wouldn't it be here by now?Equidistant to the other two tribes sat the Historians. They didn't have too many thoughts on the probable prevalence of intelligent, spacefaring extraterrestrials— but if there are any, they said, they're not just going to be smart. They're going to be mean.It might seem almost too obvious a conclusion. What is Human history, if not an ongoing succession of greater technologies grinding lesser ones beneath their boots? But the subject wasn't merely Human history, or the unfair advantage that tools gave to any given side; the oppressed snatch up advanced weaponry as readily as the oppressor, given half a chance. No, the real issue was how those tools got there in the first place. The real issue was what tools are for.To the Historians, tools existed for only one reason: to force the universe into unnatural shapes. They treated nature as an enemy, they were by definition a rebellion against the way things were. Technology is a stunted thing in benign environments, it never thrived in any culture gripped by belief in natural harmony. Why invent fusion reactors if your climate is comfortable, if your food is abundant? Why build fortresses if you have no enemies? Why force change upon a world which poses no threat?Human civilization had a lot of branches, not so long ago. Even into the twenty-first century, a few isolated tribes had barely developed stone tools. Some settled down with agriculture. Others weren't content until they had ended nature itself, still others until they'd built cities in space.We all rested eventually, though. Each new technology trampled lesser ones, climbed to some complacent asymptote, and stopped—until my own mother packed herself away like a larva in honeycomb, softened by machinery, robbed of incentive by her own contentment.But history never said that everyone had to stop where we did. It only suggested that those who had stopped no longer struggled for existence. There could be other, more hellish worlds where the best Human technology would crumble, where the environment was still the enemy, where the only survivors were those who fought back with sharper tools and stronger empires. The threats contained in those environments would not be simple ones. Harsh weather and natural disasters either kill you or they don't, and once conquered—or adapted to— they lose their relevance. No, the only environmental factors that continued to matter were those that fought back, that countered new strategies with newer ones, that forced their enemies to scale ever-greater heights just to stay alive. Ultimately, the only enemy that mattered was an intelligent one.And if the best toys do end up in the hands of those who've never forgotten that life itself is an act of war against intelligent opponents, what does that say about a race whose machines travel between the stars?
The Pirates' most advanced and widely discussed technological innovation is an online system called LiquidFeedback, which allows the party to better understand what its members think about issues of the day. Here is how it works: Any member of the party can register (with the optino of using a pseudonym) with LiquidFeedback and propose that the Pirates should do x. If more than 10 percent of other members find this proposal intriguing, it passes to the next stage, in which party members can vote for or against it.After the proposal has been submitted, and before it has moved to the voting stage, other party members can launch counterproposals on a similar subject or make suggestions about how to improve the original one. What's interesting is that party members can transfer their votes to those they consider more knowledgeable about a given subject; thus, someone recognized as an expert on transportation policy might end up casting ten votes rather than one. To prevent some such experts from accumulating and abusing power, transferred votes can be recalled to their original "ownders." The votes cast in LiquidFeedback are not bniding; they simply inform party officials about the views of the grass roots. Big policy proposals are still discussed and voted upon at the party congress. LiquidFeedback thus aims to provide the intellectual inputs to the Pirates' work; the outputs are still determined by rather conventional means.This all sounds great in theory...but the reality is much grimmer. In one German region, reports Der Spiegel, the Pirates used LiquidFeedback to gather general opinions on only two issues, while only twenty votes were cast in the controversial law on circumcision.