The shift to a tech economy that seems to devalue human capital requires adjustment in every aspect of society
Major job losses, higher inequality and deeper social isolation are on the horizon of our rapidly shifting economy that demands new skills for emerging technologies. The value of human capital is on the decline with robotics, automation, and artificial intelligence increasingly driving productivity.
California, long the home of technological advancement, can either cave to the brewing problems of displacement, disparity and disengagement, or place itself at the cutting edge of human innovation. Technology can be adapted to facilitate learning new skills and promoting a higher quality of life and more united communities if attention is focused on sustaining the value of human capital.
As I track the state’s finances with a close eye on how we can innovate and prepare for economic shifts, I am also monitoring the potential impact on job sectors such as agriculture, retail and hospitality. While these occupations may be more conducive to displacement, I believe the skills these jobs require, when paired with the right technology, can add value to the worker and to our economy.
For example, technological innovations could enable farmworkers, grocery store clerks, and food service workers to serve as the first line of defense against foodborne illness.
Sectors that hold particular promise for displaced workers are fields that benefit greatly from human touch such as health care and caregiving professions. Human touch and emotional intelligence are integral to fulfilling the care needs of children, people with disabilities, and older adults.
We are already seeing the benefits of using mobile technology, telemedicine and health apps. Imagine if technology could alert a caregiver when a patient is prone to fall or provide real-time patient information from caregiver to medical provider.
There are countless entrepreneurship opportunities — from caregiver gig apps to adaptive personal care products. Yet however useful, these advancements can never replace the genuine relationship between caregiver and patient, a personal connection pivotal to successful patient outcomes.
Like so many Americans, I am planning the care needs for my aging mother. I am also deeply troubled by recent events around the globe that have brought division, hatred and violence to a boiling point. I believe the economy has led us to this point.
The economy of a long-gone California era continues to define today’s inefficient tax structure. The economy is keeping families from realizing the dream my immigrant parents did of working hard and supporting six kids through college.
The economy has created jobs, yet not enough meaningful work to lift living standards. It has failed to sustain the basic human needs of identity, community, purpose, and acceptance.
As our economy evolves, policymakers must challenge themselves to adapt. We must support the private and public sectors to complete the work of bringing broadband to every corner of the state. We must ensure our schools incorporate computer science and entrepreneurial skills development at all levels of learning. We must support community colleges and create incentives for tech companies to invest in retraining of displaced workers. We must encourage labor sectors to develop the transition to new ways of work. We must push investors to support technology for the common good.
On Labor Day, we will honor the contributions of working men and women and the union struggles to improve economic conditions for working families. At the heart of the next economic disruption is how much we will continue to value our human capital. Boosted by technology, let us leverage our human capital so we all may be more productive, more valuable, and more fulfilled.
Betty T. Yee is State Controller, California’s chief financial officer, and chairs the Franchise Tax Board. She wrote this for The Mercury News.
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