#020: Send help: 70 million U.S. jobs to disappear in 5-10 years due to automation

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Likelihood of specific job becoming automated

Likelihood of specific job becoming automated

Major cities affected by automation

Major cities affected by automation

We are rapidly moving into a highly competitive world. Our schools did not prepare us for this new paradigm. This new “way of doing things”. 

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Our school system taught us to follow the leader. We learned how to become dependent on a system that told us what to do. But the new world is automating repetitive jobs and removing all the friction between the customer and what they want. 

Like Blockbuster, department stores like Sears and JC Penny aren’t able to keep their doors open anymore.

Like Blockbuster, department stores like Sears and JC Penny aren’t able to keep their doors open anymore.

GM announced that 14,000 employees will be cut to focus more on autonomous self driving electric cars.

GM announced that 14,000 employees will be cut to focus more on autonomous self driving electric cars.

Amazon went from being less than 10% of total ratail just 10 years ago to being larger than 8 of the largest department stores combined.

Amazon went from being less than 10% of total ratail just 10 years ago to being larger than 8 of the largest department stores combined.


What does all this mean? 

Contrary to popular belief, in the manufacturing industry, TECHNOLOGY is causing more job loss in than INTERNATIONAL TRADE (China, Mexico, etc).

Contrary to popular belief, in the manufacturing industry, TECHNOLOGY is causing more job loss in than INTERNATIONAL TRADE (China, Mexico, etc).

1. We are in a digital revolution. We have to produce 10x more than we consume. 

2. The old way of doing things no longer works.

The formula was simple before for the corporation. These are the companies that we went to school for. The formula was if you have enough money, you bought influence and you ran a lot of ads. The TV, newspaper, and radio ads are not as effective as they used to be.

If GM, JC Penny, and Sears needed sales, they would just run ads. Now the cost of ads are higher than what they get in return in sales. 

People don’t want to be fed, they are using their phones as a remote to choose what they want. 

In manufacturing: Thanks to technology, 5 people are producing the output of 25 people now. 

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Efficiency from the digital revolution requires less people to produce the same $1 million in output.

Efficiency from the digital revolution requires less people to produce the same $1 million in output.

3. We need to learn the skills of this new paradigm. The future requires thinkers with skills with repetitive jobs getting replaced by an algorithm. 

FOCUSING ON SKILLS

We are shifting from careers of being average to projects that require BUILDING NEW SKILLS that make us stand out. Skills that set you up to produce 10x more than you consume. 

The people who ignore this are no different than the people who were enjoying a cup of wine while the Titanic sank. 

As Seth Godin says:  

“If people don’t miss you when you’re gone, then you’re not doing things that matter. “

@helloswat