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The wages aren't "lost", the "saved" money will still be paid to somebody to do something.
by winstonewert 9y ago
The wages aren't "lost", the "saved" money will still be paid to somebody to do something.
- toomuchtodo 9y agoProfits kept by shareholders.
- winstonewert 9y agoand spent by them as well.
- toomuchtodo 9y agoMaybe. Depends on tax law at the time. Going to need social safety net money, we might as well tax automation.
- kansface 9y agoOur tax code needs reform, but taxing gains in productivity is a perverse incentive.
- toomuchtodo 9y ago> but taxing gains in productivity is a perverse incentive. Not at all. The end goal should not be productivity onto itself. If those gains are being scooped up by a sliver of the population, we change the rules to benefit all. One person, one vote. As automation automates away more jobs, the cohort of people without jobs grows, forcing regulations (through democracy) to change to move towards a citizen's dividend funded by a tax on automation. The system will reach equilibrium, or there will be a revolution. If you don't want your automation lifting the tide of all boats, someone else will come along and build it.
- djrogers 9y agoThat mindset only works without the reality of globalization.
- toomuchtodo 9y agoEvents like Brexit and Donald Trump are only the start. If economic conditions gets worse for the disadvantaged, it gets worse for everyone. Clearly, democracy can override your usual globalization proponents (see: "Okay, The Trans Pacific Partnership Is Dead. What was it?" | https://www.washingtonpost.com/news/monkey-cage/wp/2017/01/23/okay-the-trans-pacific-partnership-is-dead-what-was-it/ https://www.washingtonpost.com/news/monkey-cage/wp/2017/01/2...)
- kuschku 9y agoSpent by them in other countries, where they patriotically only spend it locally. That’s the problem of the modern globalized world, all the profits end up spent in the US.
- robotresearcher 9y agoRich people spend much less of their money on stuff than poor people do. Another thousand to a millionaire goes on the pile. Another thousand to a single mom goes on kids' shoes and car repairs.
- winstonewert 9y agoNobody throws their money into a pile. Rich people predominantly invest their money which is still paying people to perform work, just like repairing shoes and cars.
- deleted 9y ago[deleted]
- robotresearcher 9y agoYes. They invest it. Not spend it as you claimed above. And while both keep money moving, they have very different effects on the spender/investor.
- winstonewert 9y agoYes, "spent" was the wrong word. All I'm saying is that the money will be moving, and still providing employment.
- djrogers 9y agoShareholders aren’t all ‘rich people’ - pension funds, insurance funds, and regular old retiremt funds all hold a lot of stock.
- Mz 9y agoPeople who have no hope of ever retiring from their low wage job that they live in fear of losing to automation might count anyone with a pension plan/retirement fund access (and even insurance) as rich.
- s73ver_ 9y agoThey're lost to those who would have earned them.
- simonh 9y agoTypically the gains would be shared through lower prices to customers and higher profits. Lower costs might also increase demand for services and goods, growing the industry and increasing employment elsewhere in companies, though that latter is likely to be a relatively small effect.
- winstonewert 9y agoIts not about lower costs or growing the industry. If we save $1 billion dollars in automating one industry, we are just going to spend that $1 billion dollars elsewhere, growing some other industry.
- simonh 9y agoThat's right, it frees up $1bn for other uses. This is why automation, ever since the industrial revolution, hasn't lead to persistent mass unemployment. The capital freed up by more efficient industry was used to create new industries and jobs that didn't even exist before. There have been some painful adjustments, but the more flexible an economy is the more rapidly it adjusts. Historically this has been a US strength.