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I think this here is the key. Automation (not globalisation) has removed many entry level and low so jobs. At the same time we have artificial scarcity through

I think this here is the key. Automation (not globalisation) has removed many entry level and low so jobs. At the same time we have artificial scarcity through regulations in the housing market to keep neighborhood character and see the cost of required services that cannot be automated easily like health care and education go up and up. Instead of increasing wealth redistribution to compensate for the wealth centralization from automation, we reduce mechanisms that transfer wealth to supposedly cut cost and because regulation is local but capital is global.

danuker 4y ago
> education I argue it can be automated. I have learned more from ML MOOCs than from my Romanian college.
- ajmurmann 4y ago
  100% agree that we could, but social dynamics seem to prevent it from happening.
kneebonian 4y ago
I'd argue it's the other way all of the things you listed, healthcare, education, and housing are hugely subsidized by the governemnt. Healthcare through medica(r|d)e, education through pell grants and loans, and homes through the tax breaks associated. These things all together result in the massive increase in cost of these things, because the government is redistributing wealth from others to those industries.
- ajmurmann 4y ago
  It's an interesting dynamic. Because of rising cost, consumption of the services gets subsidized in ways that distort the market. In addition lots of regulations and controls are put in place which further drive up cost. Interesting paper on this: https://www.niskanencenter.org/cost-disease-socialism-how-subsidizing-costs-while-restricting-supply-drives-americas-fiscal-imbalance/ https://www.niskanencenter.org/cost-disease-socialism-how-su...
- jimbokun 4y ago
  I agree with you 100%, and its seems very difficult to explain this to people in terms of politics. The intuition is that grants and loans make education more affordable, but in the medium to long term they just inflate the cost of tuition for everyone. Similarly for healthcare and housing. Feel like we either need to socialize these sectors of the economy, or go full free market. But a system half way in between doesn't work. (My personal preference would be to largely socialize healthcare and education, while pushing for more free market reforms for housing, to encourage new development and increase the housing supply.)

danuker 4y ago

> education I argue it can be automated. I have learned more from ML MOOCs than from my Romanian college.

ajmurmann 4y ago
100% agree that we could, but social dynamics seem to prevent it from happening.

kneebonian 4y ago

I'd argue it's the other way all of the things you listed, healthcare, education, and housing are hugely subsidized by the governemnt. Healthcare through medica(r|d)e, education through pell grants and loans, and homes through the tax breaks associated. These things all together result in the massive increase in cost of these things, because the government is redistributing wealth from others to those industries.

ajmurmann 4y ago
It's an interesting dynamic. Because of rising cost, consumption of the services gets subsidized in ways that distort the market. In addition lots of regulations and controls are put in place which further drive up cost. Interesting paper on this: https://www.niskanencenter.org/cost-disease-socialism-how-subsidizing-costs-while-restricting-supply-drives-americas-fiscal-imbalance/ https://www.niskanencenter.org/cost-disease-socialism-how-su...
jimbokun 4y ago
I agree with you 100%, and its seems very difficult to explain this to people in terms of politics. The intuition is that grants and loans make education more affordable, but in the medium to long term they just inflate the cost of tuition for everyone. Similarly for healthcare and housing. Feel like we either need to socialize these sectors of the economy, or go full free market. But a system half way in between doesn't work. (My personal preference would be to largely socialize healthcare and education, while pushing for more free market reforms for housing, to encourage new development and increase the housing supply.)