Last week I participated in a panel on “Freedom and Abundance” with Bri Wolf at an I.H.S. Symposium on “The Future of Liberalism.” As a small part of my presentation (and also in my Openness book), I claim that innovative dynamism creates more jobs than it destroys, and that the new jobs are generally better jobs than the old jobs.
After the panel Bri asked me how I respond to David Graeber’s book Bullshit Jobs. I vaguely remembered hearing of the book, and told her I would look into it. What follows is my brief, quick, edited response.
Graeber claimed that a large number of jobs in the for-profit sector are purposeless, demoralizing “bullshit” jobs. I do think that there are some bullshit jobs, but think that they are much more common in the government and non-profit sectors than in the for-profit sector. There are some in the for-profit sector, but I would argue that the number is diminishing, and many of them are due to labor unions and government regulations, that protect bullshit jobs from being eliminated.
Where innovative dynamism is allowed to function unbound, the trend is toward more meaningful jobs. Two of the important technological innovations of the last several decades have been computers and the internet. Erik Brynjolfsson and co-authors wrote a few papers showing that an important effect has been to flatten the hierarchy at a great many firms. This eliminates much of the middle management that Graeber identifies as one main location of bullshit jobs.
I also looked the book up on Wikipedia and noticed that a couple of empirical papers have been written that raise doubts about some of the claims in the book.
The book seems to have gotten enough attention to justify a longer more serious critique than I am giving it in this blog entry. But I humor myself that I have bigger fish to fry, namely my mission to see if I can help nudge the healthcare mess more toward being a system of innovative dynamism.
Some of Erik Brynjolfsson’s relevant co-authored articles, alluded to above, are:
Bresnahan, Timothy F., Erik Brynjolfsson, and Lorin M. Hitt. “Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence.” Quarterly Journal of Economics 117, no. 1 (2002): 339-76.
Brynjolfsson, Erik, and Lorin M. Hitt. “Beyond Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000): 23-48.
Brynjolfsson, Erik, and Lorin M. Hitt. “Computing Productivity: Firm-Level Evidence.” Review of Economics and Statistics 85, no. 4 (Nov. 2003): 793-808.
David Graeber’s book is:
Graeber, David. Bullshit Jobs: A Theory. New York: Simon & Schuster, 2018.
My book is:
Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.