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I downvoted you. My problem with what you said is that you acknowledged that technology creates surplus, but didn't acknowledge that many of the efficiency gain

I downvoted you. My problem with what you said is that you acknowledged that technology creates surplus, but didn't acknowledge that many of the efficiency gains aren't going to the consumer, but to the owners of the company.

ryanworl 10y ago
Technology creates massive consumer surplus. I'm not sure if you don't know what that means, but it means exactly the opposite of what you said. For example: Apple sells an iPhone for about $750. This phone contains the equivalent of (roughly) $3,000 of disparate technology from the 1990s, including a cell phone, camera, tape recorder, etc. Not only does it contain all of that for less money, all of that is better quality than what was available for that $3,000 back in the 1990s. That is deflation and consumer surplus in action. The consumer can spend a fraction of what they would've in 1990 for a better product. Another example: Apps on the App Store. Everyone expects everything for free because there is so much competition enabled by technology. The marginal cost is roughly zero, so most apps are free. If most of the gains were being kept by the producer, apps would cost a lot of money.
- dukeluke 10y ago
  My previous post was poorly worded. Technology has automated so many jobs that the oversaturated labor pool means wages are dipping. Cheaper goods don't mean much when you can't afford a house or car. Meanwhile, the investors are reaping the benefits of this efficiency with insane returns, and the CEOs are running off with millions. When we're living in the richest country in the world with a GDP per capita of over $50k, the idea that there are those unemployed or making $8k/yr while others are making millions or billions per year is ridiculous.
RangerScience 10y ago
That's not a good thing to down-vote for, but props for explanation. Down vote for trolls and other destructive posts, not just because you have a problem or disagreement with what's expressed. OP is legitimately trying to contribute to the conversation.

ryanworl 10y ago

Technology creates massive consumer surplus. I'm not sure if you don't know what that means, but it means exactly the opposite of what you said. For example: Apple sells an iPhone for about $750. This phone contains the equivalent of (roughly) $3,000 of disparate technology from the 1990s, including a cell phone, camera, tape recorder, etc. Not only does it contain all of that for less money, all of that is better quality than what was available for that $3,000 back in the 1990s. That is deflation and consumer surplus in action. The consumer can spend a fraction of what they would've in 1990 for a better product. Another example: Apps on the App Store. Everyone expects everything for free because there is so much competition enabled by technology. The marginal cost is roughly zero, so most apps are free. If most of the gains were being kept by the producer, apps would cost a lot of money.

dukeluke 10y ago
My previous post was poorly worded. Technology has automated so many jobs that the oversaturated labor pool means wages are dipping. Cheaper goods don't mean much when you can't afford a house or car. Meanwhile, the investors are reaping the benefits of this efficiency with insane returns, and the CEOs are running off with millions. When we're living in the richest country in the world with a GDP per capita of over $50k, the idea that there are those unemployed or making $8k/yr while others are making millions or billions per year is ridiculous.

RangerScience 10y ago

That's not a good thing to down-vote for, but props for explanation. Down vote for trolls and other destructive posts, not just because you have a problem or disagreement with what's expressed. OP is legitimately trying to contribute to the conversation.