Dilemma Technology and Labor

Efficiency and Low Average Cost

Variable CostWe had been arriving at 21 century, and now we are living in globalization and technology environment. If we look back at green revolution when agriculture and industry were starting to grow up, Technology was created to help human in their job. While human only has two hands, he couldn’t make more. This is the philosophy why technology was created. Technology has been playing many rules and important rules in all aspects. We need Technology. Sometimes, technology is described as a external factor, to help our hand, help our feed, help our mind to make more result in our job. When Adam and Eve worked as farmer, they need mattock, cow (to plow the farm) and irrigation. Mattock, cow and pipeline irrigation is technology. Cow is replaced by tractor; mattock is also replaced by tractor, ancient irrigation is replaced by modern pipeline irrigation and maybe lumber mill.
This is a stupid metropolis opinion, talking about Technology Vs Labor. Who get the benefits, Employee or employer?
To describe about technology and labor is very sensitive because labor without technology is meaningless and otherwise. The both still help each other. The point is how much percent technology is required and how we combine technology and labor percentage so we get lower Variable Cost (VC)

The graph above represents that company expects to produce more goods with lower VC, closer to zero.
At most companies, especially high technology companies, reducing the number of workers are best solution to help them run with lower VC. (We assume that special case companies still use high labor than technology like cigarette company, Textile Company, and handcraft company, so we ignore the companies to make our logic runs better).
Some experiences show us that while technology makes our life run better, many demonstrations from workers (employers) try strive for safety – permanent work when companies try to reduce workers and increase the technology. In this case, we see that workers love and need technology but they hate if technology replace them in company.
Macroeconomic also put in danger, when many companies try to replace workers with technologies. The direct impact is increase in unemployment. High unemployment makes government dizzy. The paradox is High Labor with high VC (Variable Cost) contra High Technology with lower VC.

While companies are private, government hasn’t direct authority to clear the problem (if high unemployment). Government just makes rules-labor protection right; for example, rules about fired, compensation and more). Government just plays their negotiations through persuasions. Labor force (Labor Union) has direct bargaining power, struggling, and strives through negotiations (peace action) and demonstration.
Only internal Companies Staffs can solve this problem. For example if he is nationalism or he has goodwill to help people escape from poverty. Keep in your mind that, Companies target is Profit, has no correlation with avoid unemployment. Government has this job.

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