Thursday, April 02, 2026

When Humanoid Robots Come to a Small-Town Factory

Two-legged robots have taken over a job in a South Carolina auto parts plant. That’s just the start.

By John Keilman of The WSJ

Right after this post I repost a blog entry from 2016 called Automation Can Actually Create More Jobs. Then after that are links to other posts on jobs, robots & automation.   

Excerpts:

[A robot carries] "a 25-pound basket of bearing components . . . and walks it over to a conveyor that will send it through an industrial washing machine."

"A year ago, a person did this job.  Now it belongs to a humanoid robot called Digit that was built for grunt work."

"Schaeffler, a global manufacturer that makes parts for cars and airplanes, said it plans to deploy more of the robots in the coming months."

"Agility [an Oregon-based startup] wouldn’t give Digit’s price tag, but over the life of a robot, the costs work out to $10 to $25 an hour, depending on whether a company buys or rents it. Damion Shelton, Agility’s co-founder, has said it could eventually fall to $2 or $3 an hour. Entry-level positions at Schaeffler’s Cheraw plant, which isn’t unionized, start at $20 an hour." 

Automation Can Actually Create More Jobs

Evidence shows increased productivity leads to more wealth, cheaper goods, greater spending power and ultimately, more jobs

By Christopher Mims of the WSJ.

There are four types of unemployment: seasonal, structural, frictional and cyclical.

Structural unemployment is unemployment caused by a mismatch between the skills of job seekers and the requirements of available jobs.

One example of this is when you are replaced by a machine, like bank tellers who were replaced by ATMs. Another example is when there is a fall in demand for your product, so you get laid off, like with typewriters since people now use computers. A third example is geographical, when the jobs are not in your region of the country.

But automation may not be a problem, even in the case of ATMs. Excerpts from the article:
"Since the 1970s, when automated teller machines arrived, the number of bank tellers in America has more than doubled. James Bessen, an economist who teaches at Boston University School of Law, points to that seeming paradox amid new concerns that automation is “stealing” human jobs. To the contrary, he says, jobs and automation often grow hand in hand."

"Sometimes, of course, machines really do replace humans, as in agriculture and manufacturing"

"a long trail of empirical evidence shows that the increased productivity brought about by automation and invention ultimately leads to more wealth, cheaper goods, increased consumer spending power and ultimately, more jobs.

In the case of bank tellers, the spread of ATMs meant bank branches could be smaller, and therefore, cheaper. Banks opened more branches, and in total employed more tellers, Mr. Bessen says.

Some individuals are uprooted and suffer. In 1900, 40% of U.S. workers toiled in agriculture; today, that figure is less than 2%. Manufacturing employment in industrialized countries has declined in recent decades, as fewer people make more goods. But society, on the whole, has come out ahead.
It’s true that technology alters the quality, as well as the quantity, of jobs"

[a study] "found big increases in both low-paying and high-paying jobs. There are more barbers and barkeepers. But there also are more accountants and nurses, reflecting the rising complexity of the modern economy.

Paradoxically, says Mr. Stewart, many of the fields most transformed by technology have produced the biggest increases in employment, from medicine to management consulting. “What we saw was that machines and people were highly complementary,” he says.

Such bifurcated labor markets have ill effects. Disappearing factory jobs have largely been replaced by jobs in the service sector, where highly skilled workers, like doctors and computer programmers, are paid more, while many others see to the comfort and health of the affluent. In the middle, wages have stagnated, helping spawn our current age of populism.

“The era of mass manufacturing employment in the 1960s and 1970s was a good thing,” says Dr. Autor. “It created a lot of good jobs, it needed a lot of hands and eyes, and required some skills but not an enormous skill set. The work was relatively high value added.” But, he adds, that era is for the most part behind us."

"For all the recent advances in artificial intelligence, such techniques are largely applied to narrow areas, such as recognizing images and processing speech. Humans can do all these things and more, which allows us to transition to new kinds of work."

"the problem is not “mass unemployment, it’s transitioning people from one job to another.”"

"Near the end of the 19th century, America’s agricultural states faced the prospect of mass unemployment as farms automated.

In response, they created the “high school movement,” which required everyone to stay in school until age 16. It was hugely expensive, both because of the new schools and teachers, but also because these young people could no longer work on the farm. But it better prepared workers for 20th century factory jobs" 

Related posts:

AI startups are literally paying people to fold their laundry (or perform similar chores) (2025)

"Companies such as EncordMicro1, and Scale AI have launched paid “data collection” programs aimed at generating real-world video datasets for robotic learning." 

America’s Newest Auto Plant Is Full of Robots. It Still Needs the Human Touch: Hyundai’s sprawling complex in Georgia illustrates advanced manufacturing’s balance between people and machines (2025) 

No, AI Robots Won’t Take All Our Jobs: Instead, they will boost productivity, lower prices and spur the evolution of the labor market (2025) (it also has links to 14 other related posts from before 2024)

IBM CEO Says AI Has Replaced Hundreds of Workers but Created New Programming, Sales Jobs: The tech company promises higher total employment as it reinvests resources toward roles like software development (2025)

Technological Disruption in the Labor Market (2025)

Why AI Might Not Take All Our Jobs—if We Act Quickly (2025)

Some good news on productivity (2025) (AI is mentioned)

Some economics of A.I. (2025) 

The AI-Generated Population Is Here, and They’re Ready to Work (2024)

Two recent articles on robots and human workers (2024)

Self-service kiosks at McDonald’s are not reducing employment (2024) 

Robots writing science fiction (2024)

Amazon’s New Robotic Warehouse Will Rely Heavily on Human Workers (2024) 

Wednesday, April 01, 2026

Will AI data centers cause economies of scale in the power industry?

See The Electric Grid Needs Huge Upgrades. No One Knows Who Will Pay for Them: Utilities around the U.S. are set to spend tens of billions of dollars on high-voltage lines, largely to meet demand from data centers by Katherine Blunt and Jennifer Hiller of The WSJ.

Economies of scale is when more capital is built (like a larger factory for more extensive grid system) that allows for more output (see related post below on the Model-T). The increase in quantity is larger than the increase in total cost (in percentage terms). So the average cost falls.

Excerpts:

"The AI build-out is driving up electricity costs in some places, an issue that has angered politicians and spurred intervention by the Trump administration. The White House this month announced that seven of the nation’s largest tech companies had agreed to pay for all the costs associated with powering new data centers."

"the prices utilities charge to customers. That is overseen by state regulators, who have in recent years approved rate increases as utilities make investments not only to support data centers but also to upgrade the grid to withstand more extreme weather and replace parts that are decades old."

"Transmission spending, though, poses challenges for utilities and regulators in determining how costs should be divided. In many places, some transmission costs will be shared among customers other than tech companies because the upgrades may benefit the broader system.

“Data center developers have said they want to pay their fair share, but the question is, what does fair mean?” said Timothy Fox, managing director at ClearView Energy Partners. “Cost allocation for transmission has always been a very complex and difficult question. It’s an imperfect science.”

The utility industry argues that adding data centers has the potential to lower costs for other customers, as they could spread shared costs over a greater volume of electricity sales. That has been the case in some places such as North Dakota." (this is where the economies of scales comes in)

"Brent Bennett, a director at the conservative Texas Public Policy Foundation, said the costs could fall more heavily on residential customers than on the companies that are creating the new demand. His organization has estimated that the average ratepayer will pay somewhere between about $150 and $225 a year for the transmission projects that have been recently approved."

Related post:

Jeopardy and the inflation adjusted price of a 1908 Ford Model T (2023)

This site, Ford Model T Original Prices, from FordModelT.net run by Mitchell Taylor shows all the prices of the different body styles for the Model T from 1909 to 1927 (as well as drawings of some them).

The cheapest in 1909 was the Runabout with a price of $825. The price generally kept falling and by 1925 a buyer only paid $260. That is a drop of about 68%.

But, adjusting for inflation, what would you have to pay in 1925 for something that cost $825 in 1909? Prices were 93% higher in 1925 than in 1909. So if the price of the Runabout had just kept up with inflation, it would have been $1,592 in 1925. Yet it was only $260. That means the price actually fell about 84%, adjusted for inflation.