In Pittsburgh on Wednesday, Uber began to test its new self-driving cars. As a precaution, a safety engineer sits in the driver’s seat of each car in order to take control if necessary. Many people have met this new technology with curiosity, but some — especially current Uber drivers — worry about its effect on job security. According to a Sept. 4 Washington Post article, Pittsburgh mayor William Peduto claims drivers should not worry because “it’s not a question of whether there will be a change in jobs.” What do you think of Uber’s self-driving cars, and how do you think such technology, if successful, will affect society?

Prof. Sharon Thomas (IBS)

I think self-driving cars are inevitable, and Uber is not the only company investing in this technology. Uber could argue that anyone with a smartphone can create a ride-sharing app and that that market is not defensible. They are a company looking to make a profit, and they don’t owe the drivers long-term job security. The impact on society may be all positive: they will meet unmet demand (they will come in 60 seconds versus the 5-10 minutes a car or cab may take), they are safer than cars with drivers and they will reduce traffic (when the system is guided solely by navigation and new routes are taken). Less traffic means less auto emissions and cleaner air. I think that in the foreseeable future, the market for driverless cars is for ride-sharing users only. As the ultimate “ego-expressive” purchase, won’t consumers be reluctant to adopt this new type of car? Is your car still a reflection of your personality and status if you aren’t driving it? I know driverless cars are coming but I think it will be a slow adoption and may end up feeling like a perfectly normal technological evolution.

Prof. Sharon Thomas (IBS) is an Adjunct Professor in the Brandeis International Business School.

Prof. Dan Tortorice (ECON)

Since the Industrial Revolution, machines have been displacing workers. Uber’s new self-driving cars are a current example of this continual process. Fortunately, since this type of change is not new, we can be confident of its effects. First, living standards go up. Uber now produces rides with fewer resources (no driver!). This efficiency gain leads to lower prices for Uber rides and benefits all Uber customers. Second, displaced workers find new jobs eventually. No jobs are lost – but relocated. Drivers will find new jobs in new industries. To induce hiring, wages will fall in these sectors. Current Uber drivers and workers in these sectors may get paid less than before. But society as a whole benefits, as will these drivers too benefit from other technological advancements. And it is this cumulative effect of technological progress that has been the greatest poverty reduction program the world has ever known.

Prof. Dan Tortorice (ECON) is an Assistant Professor of Economics.

Lori Shapiro ’17

While self-driving cars are “smart” in the sense that they adhere to all driving regulations, at the end of the day, they are not humans. They do not have the ability to “think on their feet,” which could make driving around highly populated cities (where Uber is most popular) quite difficult or even dangerous. Also, even though the Pittsburgh mayor believes self-driving cars will not have an effect on jobs, I do not concur; as the technology becomes more advanced, the need for the safety engineer will be eliminated. Drivers will be required to look elsewhere for work, a scary thought, especially considering the current economic climate. However, these cars could drastically reduce the risk of car accidents, a positive which supersedes many of the negatives. Thus, the mass adoption of this revolutionary technology will rely on many factors, and while many obstacles stand in the way, it could ultimately have a massive impact on society.

Lori Shapiro ’17 is a Business Undergraduate Departmental Representative.

Rosa Azene ’18

Like most dramatic technological innovations, the whole idea of riding in a driverless automobile illuminates both excitement and skepticism. My main concern pertains to its potential adverse impact on the labor market of this industry. Unlike the recent statements of Pittsburgh mayor William Peduto, I believe the potential expansion of Uber’s self-driving cars will leave some current drivers structurally unemployed, at least in the short run. There is also a high chance of it forever changing our basic notion of owning and driving cars. However, looking forward, I see brighter long run results. If successful, this technology will open up more job opportunities with the development of new skills and industries, somewhat like what the growth of the internet is currently doing to our economy. There clearly is a trade-off in this new technology. Thus, I believe Uber — and other companies for that matter — should invest more on research and development to create a system where humans and machines can work more as complements instead of substitutes so as to bring about a net positive effect.

Roza Azene ’18 is an Economics Undergraduate Departmental Representative and a Brandeis Undergraduate Group Study tutor for Economics 80a, 82b and 83a.