Bill Gates: People Don't Realize How Many Jobs Will Soon Be Replaced By Software Bots
Big changes are coming to the labor market that people and governments aren't prepared for, Bill Gates believes.Speaking at Washington, D.C., economic think tank The American Enterprise Institute on Thursday, Gates said that within 20 years, a lot of jobs will go away, replaced by software automation ("bots" in tech slang, though Gates used the term "software substitution").
This is what he said:
"Software substitution, whether it's for
drivers or waiters or nurses … it's progressing. ... Technology over
time will reduce demand for jobs, particularly at the lower end of skill
set. ... 20 years from now, labor demand for lots of skill sets will be substantially lower. I don’t think people have that in their mental model."
Gates believes that the tax codes are going to need to change to encourage companies to hire employees, including, perhaps, eliminating income and payroll taxes altogether. He's also not a fan of raising the minimum wage, fearing that it will discourage employers from hiring workers in the very categories of jobs that are most threatened by automation.
He explained:
"When people say we should raise the
minimum wage. I worry about what that does to job creation ...
potentially damping demand in the part of the labor spectrum that I’m
most worried about."