William H. Davidow and Michael S. Malone echo an observation about robots replacing ever-more-capable workers and how the shift to automation will affect society. They even follow my example and use IQ as a proxy for generic capability -- though they ignore the gender implications.

Suppose, today, that the robots and smart machines of the Second Economy are only capable of doing the work of a person of average intelligence - that is, an IQ of 100. Imagine that the technology in those machines continues to improve at the current rate. Suppose further that this rate of technological progress raises the IQ of these machines by 1.5 points per year. By 2025 these machines will have an IQ greater than 90% of the U.S. population. That 15 point increase in IQ over ten years would put another 50 million jobs within reach of smart machines.

Impossible? In fact, the vanguard of those 115-point IQ machines is already here. In certain applications, the minds of highly educated MD's are no longer needed. In 2013, the FDA approved Johnson & Johnson's Sedasys machine, which delivers propofol to sedate patients without the need for an anesthesiologist. An emerging field in radiology is computer-aided diagnosis (CADx). And a recent study published by the Royal Society showed that computers performed more consistently in identifying radiolucency (the appearance of dark images) than radiologists almost by a factor of ten.

Politicians, economists, and scientists might debate these particular estimates, but to do so is to miss the larger point. Machine intelligence is already having a major effect on the value of work - and for major segments of the population, human value is now being set by the cost of equivalent machine intelligence.

The shift to automation will be a growing challenge for capitalism as the dependent class grows.

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