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I have a theory that automation can be reframed as an imbalance between natural resources and labor. Economy at large is either constrained by available supply
by js8 6y ago
I have a theory that automation can be reframed as an imbalance between natural resources and labor. Economy at large is either constrained by available supply of labor or supply of natural resources. The automation causes the labor constraint to disappear, and economy is then only constrained by supply of natural resources.
So we can see effects of this imbalance elsewhere in the world, in some poor countries, where there is too much available labor and not enough natural resources (or accumulated capital that can extract those).
In such countries, additional jobs are created, but they are of the type that requires very little additional resource input, typically service jobs. This creates huge inequality, where large amounts of people are either left out or are lucky enough to cater for the small minority.
Similar with automation, I suspect that while it is true that "jobs" can be created as much as needed (there is always a place for another person to be some kind of special servant to the rich capital owners), the inequality in society is going to rise (unless people themselves rise and revolt against such system).
- lm28469 6y ago> I have a theory that automation can be reframed as an imbalance between natural resources and labor. Economy at large is either constrained by available supply of labor or supply of natural resources. The automation causes the labor constraint to disappear, and economy is then only constrained by supply of natural resources. At some point we'll have to get out of this mental framework. Is the only mission of humanity on this earth to consume as much and as many natural ressources to produce more for "the economy" ? What's the end goal ? Automate everything and consume everything as quickly as we can ? What do we do when we're done ?
- js8 6y agoYeah, I agree, when I write "economy" I mean "capitalist economy". However, I think it is a really difficult to accomplish, people are almost always trying to up one another, and that drives this process.
- hoseja 6y agoThe only mission is to produce enough so that the guy next door can't come and take it. The guy next door of course does the same. The end goal lies in infinity because the Red Queen's race can't be stopped. If you stop you will be overtaken and destroyed. This is all followed by the heat death.
- pydry 6y agoThis is depressing if true since countries that have a surplus of natural resources relative to labor are clusterfucks almost without exception. India is a growing democracy. Libya is just a mess. Norway is the only country I can think of that escaped this trap. It's a pretty terrifying notion that the countriesof the world are hurtling towards a Libya future.
- js8 6y agoIf you have actual abundance of natural resources, they are just not being extracted, you can get out of the trap temporarily by putting people to work on creating/maintaining the capital required for the extraction. The supply of labor is then the constraint for economic growth. This is what many communist countries (USSR, China) actually did during their own development. But eventually this capital accumulation will end and you will face the resource constraint, which is actually (somewhat counterintuitively) worse for the labor. People should want the economy to be constrained by labor supply.
- pydry 6y agoAll things are possible if you have honest and effective governance. The problem is that the honest and effective governance breaks down because warring factions are usually fighting over resource control.
- rakejake 6y agoIndia is a resource poor and labour rich country unlike Libya and Norway.
- pydry 6y ago& by comparison to Libya it's doing ok.
- imtringued 6y agoThe problem with building a country around resource exports is that it becomes highly profitable to import basic needs like food. Domestic production cannot compete because there is an excess of foreign currency in the country and using that currency on food is better than simply accumulating it. I'm not exactly sure how to counteract this. A potential solution would be to introduce tariffs on consumer goods like food and a government program that subsidizes local food production with the tax income from the tariffs.