Unleashing creative potential: Reallocating workforce for genuine advancements
In a time of global population decline and shifting economic landscapes, a call for new thinking and disruption is echoing across Europe. The author argues that the continent is in need of a paradigm shift, particularly in the realm of employment and regulation, to tackle issues such as debt and deficits.
The European Union (EU) has taken the lead in regulating technological tools like artificial intelligence (AI), with the EU AI Act coming into force in stages starting from February 2025. This law, aimed at ensuring trustworthy, safe, and transparent use of AI, is designed to prevent misuse and control risks. However, concerns have been raised by over half of surveyed companies that innovation and efficiency in AI applications may be restricted, potentially slowing technological progress. The EU, on the other hand, emphasises the protection of public trust and ethical standards.
The private sector in Europe is grappling with excessive and arbitrary taxes, exaggerated compliance burdens, and overregulation. The growing bureaucracy has forced businesses to increase unproductive overheads, leaving them with less capital for investment. This, in turn, impacts productivity and competitiveness. The public sector, in many European countries, is often better paid than the private sector, leading to an expansion of the public sector and a subsequent growth in bureaucracy. This expansion has diverted talent from the real economy, with the growing bureaucracy requiring additional talent to manage, advise, and feed it.
In the past, a prosperous economy's primary function was job creation, with employment available for the youth and retirement in the sixties. However, in the present, the imminent and long-term decline in the global population necessitates a shift in focus. The author suggests that in a time of declining population, job elimination can be as important as job creation, leading to a turbulent and creative destruction of inefficient jobs, freeing people to do more productive work.
The growing bureaucracy has also affected other professions, such as lawyers and auditors, who have had to redirect their efforts from bringing useful advice to society, to administering compliance to regulations. This shift away from their core functions has led to confusion among ordinary citizens, who believe that the chaotic regulatory environment increases their security.
In an era when everyone talks about "sustainability," the realization of the scarcity of humans is often overlooked, leading to a waste of talent and human resources. By better allocating employment and eliminating unnecessary positions and rules, problems such as debt and deficits can be solved. The author suggests that streamlining Byzantine tax rules can leave businesses more capital for investment, increasing productivity and competitiveness.
The author argues that technology can help in this endeavour, and that sustainability in human endeavors is necessary. However, Europe is experiencing a widespread fear of technologies that support work, leading to the issuance of regulations limiting their use. The author contends that this fear must be addressed to ensure that Europe remains competitive and innovative in the global economy.
As the world grapples with the long-term decline in the global population, Europe is at a crossroads. The choices made now will determine the continent's future prosperity and competitiveness. The call for new thinking and disruption cannot be ignored.
Read also:
- Overcoming Yielding Regulations Hurdles in Indian Export Sector for EU Markets
- Maximizing Business Agility and Efficiency through Hybrid Cloud: Unveiling the Advantages
- Shaping production and consumption tendencies via cosmetic certification
- Increased Investment in AI, Machine Learning, Internet of Things, and Quantum Computing to Propel Growth in the Digital Economy (2020 Budget)
