A 鈥榬obot tax鈥� might help navigate job losses associated with automation
Automation is a threat to many different jobs, and some have called for a 鈥榬obot tax鈥� that could help offset some of the effects of the associated job losses. But this type of solution risks stifling innovation writes Assistant Professor Sanjith Gopalakrishnan in Canadian Manufacturing. Gopalakrishnan points to the Indian state of Kerala as a cautionary tale. It had one of the world鈥檚 first democratically elected communist governments, which implemented a system called nokku kooli. Literally translated as 鈥榳ages for looking on鈥�, nokku kooli paid worker unions when industrial equipment was used in place of human labour鈥攅ven if no actual work was performed. The system proved to impede investment and was ultimately abolished in 2018. Tax automation could have similar long-term effects, Gopalakrishnan argues, but might also help some of the short-term pain associated with job losses.
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