Abstract
This paper provides a critical assessment of Alfred Kahler's pioneering contribution to the analysis of the impact of automation on workers in his 1932 dissertation thesis Die Theorie der Arbeiterfreisetzung durch die Maschine (The theory of the displacement of the worker by the machine). Kahler's analysis is shown to be an elaboration on Ricardo's and Marx's approach to the analysis of the labour displacement and compensation process. It is also shown that the arithmetical 'circulation schemes' developed by Kahler can be interpreted as an early formulation of a closed (static) input-output model. In addition, the paper also examines Kahler's rudimentary discussion of the associated price model and of the choice of technique problem.
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