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Do you mean that production costs (prices) go down with automation or that the selling price to consumers goes down? If you meant the latter this is wrong. Th
by sykick 7y ago
Do you mean that production costs (prices) go down with automation or that the selling price to consumers goes down? If you meant the latter this is wrong. The selling price depends on the pricing power that the producer has. Consider for example monopolistic pricing power, cartel pricing power, and regulatory capture.
- beerandt 7y agoAlso, for marginal prices to approach 0, you need a true commodity. Even if this happens for most other needs / products, housing isn't a commodity, and I expect won't ever be. It will generally be demand driven in terms of relative housing costs, and if you're of the mindset that inequality in and of itself is the problem, the lowest tier housing will never be enough, no matter how sufficient. Which will just lead to a larger part of newly disposable income being spent on housing. We already know people pay based on what they can afford.