- Chapter 1: The History of Work
- 1.1 The History of Work
- 1.2 The Purpose and Meaning of Work
- 1.3 Gloom vs. Bloom of the Future of Work
- 1.4 Tackling the Challenge of Creating Meaningful Work
- 1.5 Tackling the Challenge of Largely Unrecognized Forms of Work
- 1.6 Tackling the Challenge of the New Roles of Governments and Their Respective PoliciesThis is the current section.
- 1.7 Charting a Roadmap for the Positive Future of Work
- 1.8 Conclusion
- 1.9 Assignment
1.6 Tackling the Challenge of the New Roles of Governments and Their Respective Policies
The concept of work, as we understand it today, has evolved significantly since the advent of the Industrial Revolution in the nineteenth and twentieth centuries. However, the twenty-first century is poised to usher in a dramatic transformation in the nature of work. For the first time in history, we are witnessing the digitalization of approximately 50 percent of all work, with highly advanced robots, IT programs, and intelligent entities taking over tasks that were once the domain of both machines and human labor. Looking further ahead, toward the middle of this century, many anticipate that over 50 percent of work will be conducted within virtual reality environments.
Many experts speculate that organizations will rely on only a minimal human workforce, as skilled robots and highly specialized artificial intelligence entities will handle the majority of tasks.1 Given that labor costs represent a significant portion of a business's expenses, the elimination of this cost factor could make organizations more economically sustainable. Furthermore, once the initial substantial investments in digital machines have been recouped, companies may enjoy substantial profits.
While this scenario may seem promising in terms of wealth generation, it raises critical questions. What about the people who will lose their jobs as a result of this transformation? Additionally, it's important to recognize that people need employment to afford to be consumers. Eventually, even the most profit-driven companies will realize that to maintain profitability, they require a consumer base capable of purchasing their products and services. This presents a complex and interconnected challenge for the future of work and the global economy.
Tackling the Challenge of Reinventing a New Economic System
The primary objective of an economy should be to ensure a decent life for a significant portion of the global population. This encompasses the creation of new products and services, the enhancement of quality of life, and the resolution of critical societal issues. It also involves providing meaningful opportunities for individuals who are willing and able to contribute to value creation for organizations, society, and future generations.
Given the transformative changes in the nature of work and the economy, there is a pressing need to redefine the fundamental question: "What is work?" Through this reimagining of work, we have the opportunity to reintegrate meaning into it, to the point where work may become a privilege.
The traditional definition of an economy, particularly in the context of who the consumer is, may no longer hold true. Current economic and social models may not be sustainable in this evolving landscape. Therefore, it is crucial to explore alternative models and frameworks, even those that are radically different.
As a result, we propose that the term economy should encompass all activities that contribute to the betterment of human existence, the development of our capabilities, and the facilitation of a decent standard of living. Work should be defined as any activity that has an impact on value creation in terms of economic and social values, as well as values for future generations. It's essential to recognize that all work has collateral effects on the environment, society, and individuals.
In essence, value creation is only meaningful when it positively influences the quality of life. Therefore, the concept of the economy should expand to encompass a broader spectrum of life-quality enhancing and sustaining values, extending beyond the materialistic values of today. The business paradigm is likely to shift toward permanent and sustainable transformation.
This shift brings forth the challenge of creating an economy that does not rely on the consumption of unnecessary items or artificially created needs. Instead, it should focus on dynamic value creation that satisfies the diverse expectations of multiple stakeholders, even if those expectations partially contradict each other. This redefined economic framework will contribute to a more balanced work-life equilibrium, allowing more time for building and nurturing partnerships, personal development, and the search for the meaning of life.
However, it is acknowledged that profit-maximizing companies may continue to produce goods and services for profit, emphasizing production efficiency and cost reduction, even if this leads to the depletion of their own markets. This pattern has been evident in the rush to outsource production to less developed regions, driven by a profit-centric capitalistic system fixated on growth. The consequence could be a world with significant production capacity but without the means to absorb the produced goods and services.
Several critical questions arise in this context. First, where will the money come from to purchase these products and services? Will most individuals rely on government subsidies for their sustenance, or will producers provide the necessary income? Second, what meaningful activities will people engage in when work as we know it is transformed? Lastly, who will fund the government through taxation if high profits are substantially taxed? These issues underscore the limitations of the current capitalistic system, which relies on a sufficient number of customers with disposable income to sustain itself.
Given these considerations, it becomes evident that the existing dominant economic model may not be viable in the scenarios proposed. While it is clear that the traditional communist economic model had its shortcomings, the capitalistic model also faces challenges in adapting to the changing dynamics of work and value creation. New economic paradigms and innovative approaches will be necessary to ensure the well-being and meaningful engagement of individuals in this evolving economic landscape.