JFK and AI: Historical Lessons on Employment and Automation

JFK's Initiative Against Automation

In 1961, during his first year in office, John F. Kennedy delivered a poignant message to Congress, highlighting the dangers of mass unemployment during times of prosperity. He quickly acted by introducing the Manpower Development and Training Act of 1962 (MDTA), a bill aimed at training and retraining workers affected by automation and technological changes. Kennedy emphasized that innovation must include all workers to be considered true progress; otherwise, it risks marginalizing American employees in their own economy.

The MDTA was recognized as the first major workforce training legislation in nearly two decades. It emerged at a time when automation was rapidly increasing, leading to a rise in unemployment. Between February 1960 and May 1961, the unemployment rate in the United States rose from 4.8% to 7.1%. This period saw major innovations, such as General Motors installing Unimate, one of the first industrial robots capable of performing repetitive and dangerous tasks. Telecommunications also evolved with the automation of switching processes, eliminating the need for operators for long-distance calls. Additionally, the containerization of shipments reduced the need for dockworkers, and mainframes like the IBM System/360 began automating administrative tasks, rendering many office jobs obsolete.

A Parallel with the Current AI Era

Today, the United States is facing a similar crisis, this time fueled by artificial intelligence. More than half of the companies conducting layoffs cite AI as a primary factor. A Stanford study reveals that young workers aged 22 to 25 in AI-exposed sectors, such as software development and data analysis, have seen their employment decrease by 13% since the emergence of ChatGPT.

A report from Goldman Sachs, based on decades of data, shows that workers losing their jobs due to technological changes take longer to find new employment and earn 3% less when they do. Ten years after a job loss, their incomes remain 10 percentage points lower than their peers. These workers also accumulate less wealth, access homeownership later, and delay starting their families.

The MDTA aimed to prevent workers from being left behind in the age of machines. Without an update to this mission, the AI era could leave millions of Americans struggling to adapt to tools that may never help them catch up.

Private Initiatives Amid Public Neglect

In response to these upheavals, some AI companies are taking initiatives. On April 6, OpenAI released a manifesto titled “Industrial policy for the Intelligence Age.” This document marks a shift in perspective, likely in response to growing public concerns about AI. Rather than asking workers to adapt on their own, OpenAI proposes building a resilient society and calls for safeguards for safe AI.

The document suggests innovative ideas such as a four-day workweek and the creation of a “public wealth fund” to redistribute the benefits of AI to the population, an approach reminiscent of universal basic income. OpenAI clarifies that these proposals are not definitive solutions but a starting point for broader discussions on the impact of AI.

The Inevitable Impact on Low-Wage Workers

Without adequate vocational training, inequality among American workers will continue to grow. Those with the necessary skills for the future will advance, while others, often under-invested, will be left behind. An analysis of 1.3 billion job postings shows that positions requiring AI skills offer a salary premium of 28%, or an average additional $17,792 per year. A Brookings study identifies 6.1 million workers, of whom 86% are women, in administrative roles exposed to AI but with low adaptability, who are at risk of losing their jobs.

Without federal intervention similar to the MDTA, a “Great Divergence” could occur, where the top 1% of households, who already held 31.7% of American wealth by the end of 2025, would capture all productivity gains from AI. Under-invested workers in exposed sectors would see their bargaining power and wages decline.

To launch an MDTA for AI, the United States must seriously invest in upskilling workers. The Department of Labor highlights the enormous gap in our ability to retrain workers and shows how little the government takes this challenge seriously. Under Nixon, JFK's program was expanded with more funding to help workers adapt to new industries.

Despite promises from the private sector, governments must intervene with a robust program focused on the most at-risk workers before inequality worsens. We are preparing for a 21st-century technological revolution with an outdated bureaucratic approach, and the cost of this neglect is beginning to be felt.