The podcast delves into historical shifts in labor power, from the effects of the Black Death on European workers to the Luddites' rebellion against machines. It explores the rise of workers post-Black Death, resistance to industrialization, and the impact on living standards. The episode offers insights into labor economics, capital-labor substitution, and upcoming topics on finance.
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Quick takeaways
The Black Death pandemic in 1347 led to improved bargaining power for workers by creating a labor shortage and boosting wage rates.
The Luddites' rebellion against machines during the Industrial Revolution signifies the ongoing struggle between labor and technology, showcasing the impact of automation on job security.
Deep dives
Labor History Relevance to AI and Automation
As industries shift towards automation, the relevance of labor history becomes evident. The looming question of AI possibly taking over jobs raises concerns about the distribution of the value generated by work. Throughout history, a struggle persists between labor and ownership, where dramatic shifts occasionally empower workers. The narrative underscores the importance of understanding past labor dynamics amid current economic challenges.
Economic Shifts After the Black Death
The economic landscape post the Black Death illustrates a significant transformation due to the pandemic's impact on labor. With a substantial reduction in the workforce, a labor shortage led to increased bargaining power for workers. In regions like Florence, wage rates doubled, showcasing how crises like the Black Death could unexpectedly benefit the labor force by enabling them to demand better wages and working conditions.
The Rise and Fall of the Luddites
The Luddites' resistance against machine intrusion into their craft exemplifies a pivotal moment in labor history amidst industrialization. The Luddites' protests against job replacement with machines resonated with today's debate on technology's displacement of labor. Though their efforts were met with severe opposition and eventual defeat, their stand reflects the dynamic shifts in power relations between labor and advancing technologies.
Lessons Learned: Labor Demand and Capital-Labor Substitution
Summarizing the podcast episode, key lessons emphasize the economic dynamics of labor supply, demand, and the impact of capital-labor substitution. The concept of higher labor demand leading to increased wages, alongside automation displacing workers, highlights the complexities of labor economics. These discussions offer insights into the historical contexts of labor struggles and their implications for modern economic paradigms.
Who has the power? Workers or bosses? It changes through the ages, though it's usually the bosses. Today, we look at two key moments when the power of labor shifted, for better and worse, and we ask why then? What does history have to say about labor power right now?
We travel to Sicily, Italy in the year 1347, where the bubonic plague is about to strike. The horror known as the Black Death will remake European society in countless ways, but we'll focus on one silver lining: how economic conditions shifted for workers.
Then we head about 500 years into the future, to an English factory at the dawn of the Industrial Revolution, where textile workers take up arms against the machines taking their jobs and show how rapidly labor supply and demand can change. This is the famed tale of the Luddites, now a byword for knee jerk anti-technology, but the true story has nuance and a desperate but rational violent rebellion.
This series is hosted by Robert Smith and produced by Audrey Dilling. Our project manager is Devin Mellor. This episode was edited by Planet Money Executive Producer Alex Goldmark and fact-checked by Sofia Shchukina.