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Economy

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DetlefK

(16,670 posts)
Wed Feb 22, 2017, 09:01 AM Feb 2017

Yes, automation will be a problem. [View all]

http://www.epi.org/publication/robots-or-automation-are-not-the-problem-too-little-worker-power-is/

This article tries to make an argument that it's not a problem.

Robots and automation allow us to increase efficiency by making more things for less money. When goods and services are cheaper, consumers can afford to buy more robot-made stuff, or have money left over to spend on other things. When consumers spend their leftover cash on additional goods and services, it creates jobs. These new jobs help compensate for the jobs lost to automation.

The counter-argument is fairly simple:
Imagine I have a robotic factory where I can produce and sell stuff for 1 cent a piece.
How many cars will you buy?
How many bathtubs?
How many washing-machines?
How many TVs?
How many Smartphones?
How many pants, how many shoes, how many jackets?
How much food?
How many decorative vases will you buy, how many carpets, how many paintings, how many statues, how many fragrances?
How many songs and apps will you download?

There is an upper limit on how much a person will buy, no matter how cheap it is. "Buying more robot-made stuff" ain't gonna happen if you don't need it. THERE IS AN UPPER LIMIT TO THE CONSUMPTION OF GOODS.

"Money left over to spend on other things." Like what??? Our appartments are already full of piss-cheap stuff!!! We cannot buy more because we cannot consume more!!!
The only way out is to spend your additional money not on goods but on services. Except that not only is our appartment full of goods, our time-schedule is already full of services. THERE IS AN UPPER LIMIT TO THE CONSUMPTION OF SERVICES.

When consumers spend their leftover cash on additional goods and services, it creates jobs.

Except that the consumption of such goods and services is limited per person => their production is limited => the number of creatable jobs is limited.

THE NUMBER OF POSSIBLE JOBS IS NOT INFINITE.
THE NUMBER OF ECONOMICALLY SENSIBLE GOODS AND SERVICES IS NOT INFINITE.
THE NUMBER OF CONSUMERS IS NOT INFINITE.
THE AMOUNT OF RESSOURCES IS NOT INFINITE.


The whole "don't worry about automation"-argument is based on the premise of infinite consumption.






We need to give the robot scare a rest. Robots are not leading to mass joblessness and are not the cause of wage stagnation or growing wage inequality. ... Instead, we should focus on policy choices that lead to things that truly threaten workers and their families like eroding labor standards, declining unionization, elevated unemployment, unbalanced globalization, and declining top tax rates.

Robots are not leading to mass joblessness yet because they cannot replace human workers yet. Right now, they are still on the level of tools: They need human overseers. But once they are so advanced that they no longer need human overseers, there is no longer a point in hiring any humans.
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