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Here's a curve showing how the proportion of the working force employed in agriculture has dropped from 70% to around 2% over 175 years [1]. So in other words,
by runeks 10y ago
Here's a curve showing how the proportion of the working force employed in agriculture has dropped from 70% to around 2% over 175 years [1]. So in other words, it went from almost everyone working in agriculture, to almost no one working in agriculture. This has happ
So how is this possible? It's possible because the very reason that fewer people work in agriculture is because each human is more productive, resulting in cheaper goods on the shelves, because each salary can produce more of the same good. In other words: when an employee becomes more productive, a company can sell its product at a lower price, and earn more money. It can use this money to hire more employees, to produce more goods, rather than result in a layoff. In a free-ish market (with healthy competition), competitors will force incumbents to lower their prices, in search for profits.
This has been seen countless times, in many different areas of industry (from pantyhose to, TVs to phones, cars etc.). All of these products have become significantly cheaper (relative to median income) over the past decades, and this has resulted in more people buying them, such that layoffs have become unnecessary because the increase in productivity is offset by an increase in demand.
So, it's relatively simple. 1) If the decrease in price does not cause an increase in demand, employees will have to be laid off. 2) If it causes an increase in demand, then the company can afford to hire, perhaps dramatically more. So, for example, if shoppers buy 5% more items because prices are reduced by 5% (because of automatic checkout), then the cashiers can work at the packaging facility, or the farm, or in transportation, needed to make 5% more goods available to consumers.
[1] https://cdn2.vox-cdn.com/assets/4565243/Ag_workforce.png https://cdn2.vox-cdn.com/assets/4565243/Ag_workforce.png