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> Having high unemployment means cheaper labour But fewer consumers of your products who are also earning less which means you can’t make up for it via higher
by nyokodo 4y ago
> Having high unemployment means cheaper labour
But fewer consumers of your products who are also earning less which means you can’t make up for it via higher prices. Taken to the hyped extreme AI means total economic destruction for labor and capital. In fact, unless it achieves self generation and maintenance of all supporting infrastructure and industrial inputs before this occurs then it’s the end of AI.
- twelve40 4y ago> fewer consumers of your products who are also earning less This is a consequence of potentially collective, uncoordinated action. It's possible that every individual company says "it makes no sense to be paying this much for labor, i'm getting cheap AI/robots" and fires a ton of people everyone else be damned, and then runs into lower demand later because everyone else is doing it. So everyone acts in their immediate interest to be collectively worse off, not unlike... a bank run!