J.D. Vance recently claimed ATMs didn't eliminate bank teller jobs, citing increased employment since their invention. This popular economic parable suggests technology often complements rather than replaces human workers. However, the story contains a critical flaw: bank teller employment has actually declined sharply since 2000, contradicting Vance's assertion that we have 'more bank tellers today than when ATMs were created.'

While ATMs automated routine transactions, they didn't eliminate the need for human tellers because banking workflows remained centered around human-shaped roles. Tellers handled complex tasks, customer service issues, and transactions that machines couldn't manage. The real disruption came from an entirely different technology: the iPhone. Mobile banking apps fundamentally changed how customers interact with banks, making many teller functions obsolete by enabling check deposits, balance checks, and transfers through smartphones.

The lesson isn't about ATMs versus tellers, but about complementarity versus paradigm shifts. When technology automates tasks within existing workflows, humans often remain necessary due to frictions and bottlenecks. But when new technologies create entirely different paradigms—like mobile banking replacing physical branch visits—the old roles become irrelevant. This distinction matters for understanding AI's future impact on employment.