Fourth Industrial Revolution to Displace Millions and Create Hunger

As we witness many closures of small mom and pop shops in Canada, we can also notice that big multi billion dollar companies like Microsoft, McDonalds, Amazon, Walmart and many others lay off workers and management staff due to digital transformation or better known the fourth industrial revolution.

Many experts including former Bank of Canada Governor Mark Carney believe that the 4th industrial revolution could affect negatively Canadians, by melting incomes and displacing workers.

Industrial Revolutions in the Past

First Industrial Revolution (Late 18th to Mid-19th Century)

The First Industrial Revolution, beginning around the late 18th century, marked a significant departure from agrarian economies. It was characterized by the mechanization of manufacturing processes, powered by steam engines and watermills. Textile production, iron and coal mining, and transportation systems underwent revolutionary changes. The outcome was increased productivity, urbanization, and the emergence of factory-based production.

Economic Impact: The shift to mechanized manufacturing led to increased production efficiency, reduced costs, and a surge in economic growth. Factories became hubs of mass production, boosting trade and commerce.

Job Market: While factory jobs provided employment opportunities, the conditions were often harsh, and labor rights were limited. Skilled artisans were gradually replaced by machine operators, which led to a significant transformation in the workforce in other words lay offs were excruciating.

Wealth Distribution: The initial stages of the First Industrial Revolution saw a concentration of wealth among factory owners and industrialists, resulting in socio-economic disparities. However, over time, improvements in living standards and the growth of the middle class helped balance this distribution to some extent.

Second Industrial Revolution (Late 19th to Early 20th Century)

The Second Industrial Revolution, spanning the late 19th and early 20th centuries, was characterized by the advent of electricity, steel production, and the rise of mass production techniques. Innovations in communication and transportation, including the telegraph and the automobile, revolutionized industries further.

Economic Impact: The Second Industrial Revolution propelled economic growth to new heights, fostering innovation and technological progress. Advances in transportation and communication expanded global markets and interconnected economies.

Job Market: While the introduction of assembly lines and automation increased production efficiency, it also reduced the need for certain manual labor positions. However, it simultaneously created opportunities in engineering, management, and technical fields. In other words, massive layoffs were in place especially in labour force.

Wealth Distribution: The gap between the wealthy industrialists and the working class continued to widen, but the rise of labor movements and progressive policies gradually improved working conditions and labor rights.

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Third Industrial Revolution (Mid-20th Century to Present)

The Third Industrial Revolution, also known as the Digital Revolution or Robotics and CNC Revolution, emerged in the mid-20th century with the advent of computers, semiconductors, and automation. Information technology became central to production, communication, and commerce.

Economic Impact: Information technology revolutionized industries, enabling the automation of complex tasks and the growth of the service sector. Globalization and the rise of the internet transformed the way business was conducted, expanding markets and accelerating innovation.

Job Market: The Third Industrial Revolution led to the creation of new job roles in technology, data analysis, and digital marketing. However, it also raised concerns about job displacement due to automation, requiring continuous adaptation and upskilling.

Wealth Distribution: The digital era has brought both opportunities and challenges. While some tech entrepreneurs have amassed substantial wealth, the democratization of information and access to online markets have also enabled smaller businesses and individuals to generate income. Until COVID!

Fourth Industrial Revolution (Digital transformation, the age of AI)

And here we are in the middle of Fourth Industrial Revolution, new era where robots will not be programmed and repaired by humans, where automation will control processes, maintenance schedules, where automation or better to say AI will replace humans in banking sector, administration, management, media and many more every day aspects that are not quiet evident yet.

The main question here is:

What will the excess of humanity do after we get replaced by AI and Robots? What will happen to workforce out of work?

That is something even Elon Musk warned us about! AI will revolutionize the industry, our daily lives, but what will happen to us, how will this generation of blue collar and white collar alike do?

According Elon Musk, there must be some sort of basic human income paid out by the Government or many will basically starve.

READ MORE: Brain chip company Neuralink gets approval for human trials

Canadian Economy and Inflation in 2023

According to Statistics Canada on August 15.2023, Canada’s inflation rate defied a recent trend of slowing down last month and grew at a rate of 3.3% annually.

This was an increase from 2.8% the month before. Due mostly to what economists refer to as the base effect, gas costs were one of the main things driving up the inflation rate.

This news about the terrible 3.3% inflation in Canada for month of July has been spread all over every news outlet like wildfire! 3.3% seriously? We have 3.3% inflation in a healthy market like it was before COVID. 3.3% now in this crazy inflation, skyrocketing rents, skyrocketing housing market, skyrocketing car prices, high food prices, implemented carbon tax ……… What is Statistics Canada smoking or better to say what are they including in that statistic?

Whatever it is, it could not be the real inflation ordinary Canadians have to deal with on daily basis!

READ MORE: Vancouver is at rental price all time high

Break down of real inflation in Canada

Home prices in Canada are not on the negative trend, in contrary house prices in Canada have increased 10 times in some instances over the span of 20 years.

Average home prices back in 2000:

Toronto average house price was $243,255

Vancouver average house price was $218,240

Montreal average house price was $143,000

Average home prices back in 2023:

Toronto average house prices is $1,200,000.

Vancouver average house price is $1,295,000.

Montreal average house price is $551,000

Rental prices in Canada have exploded after COVID! As Vancouver tops the list of most expansive Canadian city to rent, Toronto, Montreal and Calgary are not far behind. If you want to live in Vancouver, you must pay in rent $2981 for one bedroom apartment! The real inflation of rental apartments are as high as 18.1% in Calgary and 15.7% in Toronto.

Food prices and gas prices are not far behind, as the new “saving the world tax” is implemented or better known carbon tax, gas prices have jumped and so will everything else! I did not see any delivery truck, delivery van, 18 wheeler, cargo plane, cargo ship and certainly did not see cargo train going across Canada that runs on electricity! Fuel fuelled by carbon tax will fuel all the transportation means and will indirectly increase all the prices that Canadians need to consume.

Certainly there will be some more wealthy Canadians who own Tesla and other electric vehicles that will laugh about carbon tax yet the majority will suffer.

Energy bills in general, not only gas costs, had a significant role in the inflation rate increasing. In the last year, the cost of power has increased by 11.7%. Sorry Tesla and EV owners, carbon tax increases electricity bill as well, go figure! Electricity has to come from somewhere doesn’t it? Big portion of electricity produced in Canada is due to coal and gas power plants! EV is not exempt from carbon tax and certainly is not emission free after all.

What AI does not replace and fourth industrial revolution does not effect, increasing costs of living and newly implemented taxes could certainly put tons of pressure on Canadian population and it already does as facts don’t lie.