How will Self-Driving Cars Impact the Economy

I recently returned from my first media day at the Chicago Auto Show. There were many beautiful new designs and product launches. I must say, the autonomous car craze caught my attention. Whether level one or level four, it's fascinating to this former car dealer how consumers will react to "losing control." The consumers I interviewed seemed excited about the possibilities.

The development of self-driving cars has triggered a great deal of excitement. Not only are autonomous vehicles designed to create a safer roadway, but they also promise to boost society's productivity. You will no longer be burdened with the task of driving your car. Despite the many potential benefits of driverless cars, some people are still quite sceptical. Here are the fundamental ways that autonomous cars could impact the national economy.

Replacing Humans on Assembly Lines

The mere thought of humans being replaced by advanced technology scares a lot of people. According to experts, robotic machines will be given the task of building self-driving cars. This could cause thousands of people to lose their jobs. Over time, the entire automotive industry could be altered forever. Even the most skilled human worker will have a hard time competing with robots. I have toured many automobile factories in Detroit. Although the assembly lines are heavily robotic, it will even become more prevalent.

Commercial Trucking

Today, there are millions of commercial truck drivers in the United States. Even during the most recent economic depression, the demand for truck drivers remained high. New vehicle technology could drastically change the future. Automakers such as Telsa have already started to design self-driving trucks. The average commercial driver currently earns roughly $42,000. If self-driving trucks gain popularity, human drivers could become a thing of the past. The unemployment rate is bound to experience a significant increase. From food to fuel, fully autonomous tractor-trailers could be used for transporting a variety of things. Companies will no longer feel the need to pay a human driver to do the same job. When interviewing several executives in the trucking industry, I was told that they believe that the autonomous truck is only five years away. There are two large hurdles. First is the insurance. Insurance companies rate the driver today. What if there is no driver? Also, the executives I interviewed believed that the highways would need lanes dedicated solely to autonomous trucks. Given the slow pace that Texas has built IH 35, the only interstate through Texas to Mexico, I think that five years is ambitious.

Service Drivers at Risk

The emergence of companies such as Uber and Lyft has made it easier for people to commute. When driverless vehicles become widespread, a lot of transit workers will be out of a job. From picking up school children to carrying passengers around town and to other destinations, autonomous vehicle technology will allow computers to control virtually every aspect of transportation. Many traditional drivers will be forced to take a back seat to modern technology.

Potential Economic Benefits

You can’t overlook the potential advantages of self-driving cars. One of the main benefits of autonomous vehicles is the reduction in the number of car accidents. With the help of advanced sensors, these vehicles will be able to anticipate a crash before it happens. Improved time management is another potential perk of having a driverless car at home. Instead of worrying about navigating the road, you can spend valuable time answering emails. Many experts also believe that autonomous vehicle technology will reduce fuel costs. Because driverless vehicles will be so intelligent, they will quickly be able to determine the most efficient route to your destination.

Last week, Elon Musk launched a convertible Tesla into space. Isn't anything possible? I challenge you to stay curious and informed about the disruption that is not only affecting the automotive industry but every aspect of our lives.

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