Computer technology has been the greatest labor saving invention in human history.  So why has the USA gone bankrupt since the introduction of computers?  Actually America’s bankruptcy has little to do with computers, but it does raise a question about efficiency and it’s relation to computers.

The internet and computer technology convinced many Americans that it was our salvation; we could manufacture things cheaper and reduce labor costs that were not competitive with other developing nations, plus the internet opened the door to transforming our economy from a manufacturing based economy to an information economy.  I believe it was Al Gore who made a statement to that effect.  The same Al Gore who invented the internet (he says).

I think people overlooked the fact that those technologies existed worldwide; if America was uncompetitive with its labor costs before computers, it would be even more uncompetitive after.  Labor is labor, whether you’re digging a ditch or building and applying computers.  Americans demonstrated the height of conceit in believing their superior intellect with new technologies would power them to overcome competition from emerging industrial nations.

History has demonstrated the folly of those assumptions; the US distroyed any intent to be competitive in world markets involving manufacturing companies, they were considered dirty, antiquated and spoiling our environment.  The destruction was accomplished by politicians of both parties by their efforts to tax and regulate manufacturing companies out of existence.  Labor unions backed by liberal politicians applied the finishing touches.

The hoped for surge in information services has been somewhat disappointing; it has created a lot of interactive business all over the world and many millionaires, but little wealth for the US.  In fact computer technology has been a negative for America; jobs eliminated by the advent of computers have resulted in those people who were replaced by computers moving to unproductive areas of the economy.

Computers can reduce labor requirements but not necessarily increase efficiency when you measure the total effect on our labor force and economy.  I’ll attempt to show some examples by showing examples before and after computers. 

Government agencies had excess employees, many more than needed to perform whatever their mission required before computers, so naturally adding computers would reduce that need.  Wrong!  Government adds to its payroll on an ongoing basis, with or without computers.  Employees can sleep or daydream looking at computers just the same as when they shuffled papers; the big inefficiency is they still shuffle papers.

Way back before computers your family doctor, I guess today they are called GPs (General Practitioners) or PPs (Personal Physicians) usually had one person as a receptionist doubling as a bookkeeper; I said it was way back.  I just wanted to compare that time with today, considering the ability of computers to save labor.  The specialization in medicine has created many kinds of doctors and few have their own practice.

Analyzing my monthly statement from Medicare gives me a peek into why healthcare is such a large portion of our economy.  As I read through that statement I can only speculate as to how many people staring into their computers and still shuffling papers were required to generate that statement.

Everyone agrees that we have the best system of healthcare in the world but few people ask whether the country can afford it.  Computer technology by itself doesn’t appear to have solved that.  Medicine, like manufacturing, has improved tremendously by the use of computer technology, but computers haven’t helped that much in the administration of medicine.  However one must ask, where will the people work when we improve that situation and some are fired?

Everyone talks about inefficiencies in government and US healthcare but I haven’t seen any answers that make any sense.  Some advocate national healthcare, I guess so we can duplicate the inefficiencies of other government agencies.  Others think the private sector can better manage retirement and healthcare issues for Americans.  I agree with the second opinion but it leaves out a very important component; productivity in America.

If the majority of Americans are employed providing services (as we are now) we cannot afford the luxury of massive government services, or the best healthcare in the world; not until the majority of Americans are employed in a job that produces wealth.  The most stupid economist in the world will have trouble arguing against that economic law, however, even while I write this, many in Washington are trying to make that argument.

As I contemplate the miracle of computers I must admit that typing this opinion peace is much easier on this computer than the Underwood typewriter I learned to type with in high school; that machine would not correct my spelling and help with my bad grammar.

Computer technology is here, we can allow it to help us be more productive but it will not cure the human inefficiencies and lack of productivity that existed before we had computers.

 This opinion article was produced by Geezil, the Headmaster of the GeezilSchool of Hard Knocks.  http://www.geezilschool.net