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I actually agree that automation is a great way to become profitable. I would suggest your modified statement (not enough labor at profitable prices) is true f
by maerF0x0 8y ago
I actually agree that automation is a great way to become profitable. I would suggest your modified statement (not enough labor at profitable prices) is true for every extinct industry. We probably could have produced an extra $1B of hand produced typewriters this year, but no one wants to make them by hand for $1 an hour and no one wants to buy them.
Saying there is $3B of produce that could have been produced, ignores the fact that it would have been produced at a loss (after labor costs sufficient to incentivize workers) and there may not of even been a market for the over supply.
If there is an actual unmet market need the price curve will move upward meaning employers can pay workers more to fulfill the unmet need. To me this looks like a lack of a market for $3B of produce...
- ijpoijpoihpiuoh 8y agoI don't really understand your reply. "A lack of a market for $3B of produce" is also equivalent to saying, "A lack of market for $3B of produce at the prices required to make production profitable." The claim about automation allowing the meeting of that need simply means that the speaker believes automation will reduce prices enough to make targeting this need profitable.