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That doesn’t match real world outcomes though. Quantity demanded goes down. Wages go down. Mostly because automation isn’t making that person more valuable, it
by oneoff786 5y ago
That doesn’t match real world outcomes though. Quantity demanded goes down. Wages go down.
Mostly because automation isn’t making that person more valuable, it’s just removing it from that persons role. Skilled labor becomes unskilled labor. Supply goes way up. Clerks are a great example.
They used to do a lot for a store and had to know all the products. Now a clerk is just a last mile button presser. They don’t add much value at all. They’re not doing 4x the work. They’re doing 0.1x the work. Trying to say “but the value couldn’t be captured without that guy” is wishful thinking.
- Talanes 5y ago> They used to do a lot for a store and had to know all the products. Now a clerk is just a last mile button presser. They don’t add much value at all. They’re not doing 4x the work. They’re doing 0.1x the work. Trying to say “but the value couldn’t be captured without that guy” is wishful thinking. Not to detract from your overall point, which is absolutely correct, but having been a grocery clerk there's a slightly different phenomenon in play there. Having a clerk who knows the products well is a big help, but you really only need one available at a time. So rather than make acquiring that knowledge an actual part of the job, they rely on scale to have enough workers who learn it through their own initiative.
- zozbot234 5y ago> Skilled labor becomes unskilled labor. Which is bad for skilled labor (wrt. that set of skills) but good for unskilled labor.
- diordiderot 5y agoIt's not good for unskilled labor because they get paid even less than unskilled labor as prices rise and wages stagnate.