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> robots cost the same to operate in the US and they do in China Nope. Labor, land, resources are all typically cheaper in china. It's also close to other ma
by mises 8y ago
> robots cost the same to operate in the US and they do in China
Nope. Labor, land, resources are all typically cheaper in china. It's also close to other manufacturing. I've read on this elsewhere; it's called "economies of proximity" or some such (I can't recall exactly). But it means you don't have to ship inputs or outputs as far.
- owens99 8y agoLabor? We are talking about automation. What I am saying, in your words, is automation will shift the "economies of proximity" equation to make more sense back in the USA.
- chimpburger 8y agoNot everything will be automated simultaneously. In order to build a factory that is completely automated there is still human labor in building the factory itself, building infrastructure, mining and transporting materials, etc.
- mises 8y agoBut here's the possible issue: Chinese factories start industrializing. They stay near the others. Because everyone's still in China, the next generation will be built there. This is a big part of the reason why America winning the "AI arms race" is so important.