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12.10.2015
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Process pipework and fabrication Mechanical, pneumatic, electrical and process engineering. MoreGillian Tett The Taliban v the squash champion Pawnbrokers can teach banks Can China turn green? This can be seen in the financial sector, Head argues, pointing out that digitisation enabled some companies to create the subprime mortgage business. But the real foretaste of the future a€“ and digital hell a€“ is with companies such as Walmart and Amazon, he claims.
Unlike those early Luddites who simply smashed up 19th-century weaving machines, Head does not want to ban bar codes. Thus, he admires a€?Germanya€™s culture of co-determination and labour-management partnershipa€?, for example, or a€?the John Lewis Partnership in the United Kingdom, employee owned and the best high-quality retail chain in the countrya€?, or a€?exceptional [US companies] like Lincoln Electrica€?.
If you want to be cheerful it is possible to hope that this howl of rage is simply a passing phase. Either way, the key point is this: we have barely begun to understand the full implications of this second, digitised economy.
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In the next two to three decades, western digital networks would end up performing functions equal to the size of the a€?reala€? US economy.


But it also raises a crucial question: as those digital networks swell in size, what are flesh-and-blood workers going to do in this future world?
It is impacting the world of medicine, where healthcare providers are told what drugs to prescribe according to computer systems. While the word a€?Amazona€? is apt to conjure up delight for consumers, given its wonderfully efficient shopping experience, people working inside the companya€™s warehouses live in a world of electronic surveillance, low wages and physically demanding work.
But what is perhaps most interesting of all about Heada€™s view is that while he writes from an indignant, leftwing perspective, even he cannot find any answers. Instead, he wants a€?higher-paying, higher-skilled jobs, with the component CBS technologies used to supplement rather than replace employee expertisea€? in a new corporate culture which treats workers with dignity (or at least more attention than those robots).
But he also warns that a€?it would be delusional to think that, in the United States, the domain of these alternative work cultures will expand spontaneouslya€?. Thus, while a€?the progressive response to the harshness of 19th-century capitalism was fuelled by a growing awareness of what was going on behind factory walls, CBS are by comparison invisiblea€?. When millions of people lost their agricultural jobs in earlier centuries, nobody foresaw these labourers would find factory work. Or, to put it another way, if you looked at all the work being done by electronic supply chains, robots, communications systems a€“ and the humble bar code a€“ then the digital economy would a€?surpass the physical economy in sizea€?, Arthur wrote, on the basis of productivity and output calculations.
Last month Simon Head, an academic who teaches at Oxford University and New York University, plunged into this debate with a book entitled Mindless: Why Smarter Machines are Making Dumber Humans. For the dirty secret of these digital networks a€“ or a€?computer business systemsa€?, as he calls them, using corporate jargon a€“ is that humans do not know how to fight back.
And, of course, the rise of Amazon has also been deeply painful for many independent retailers, suppliers and writers. But while he cites a few a€?case histories where alternative, employee-friendly cultures have taken roota€?, he also admits a€?these are not easily replicated elsewherea€?.
But it is also possible to imagine a darker future: as the French economist Thomas Piketty writes in another thought-provoking book, Capital in the Twenty-First Century, it is not clear what could halt this digitisation trend a€“ and the growing inequality it generates.
Starting, perhaps, on the next occasion you swipe a bar code a€“ or place an order on Amazon a€“ with such deceptive, seductive ease.


These networks keep displacing jobs that used to be performed by the middle classes, tossing them out of work or into thankless, monotonous drudgery, even as a tiny elite of skilled managers (or business owners) gets wealthier.
As a result, income inequality keeps growing and digital systems increasingly dictate what we all do, overriding human common sense.
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