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Automation is to reduce cost per revenue, by reducing jobs per revenue. Which is not quite the same as an absolute desire to eliminate jobs. The result is ini
by Nevermark 3y ago
Automation is to reduce cost per revenue, by reducing jobs per revenue.
Which is not quite the same as an absolute desire to eliminate jobs.
The result is initially lower employee count, but in cases where the automation significantly impacts total costs, and therefore pricing, of an independently consumed product or service, with upwardly elastic demand: the lower cost & pricing will trigger growth that also creates a job growth effect.
But those are special conditions.
As I point out, and you do too, in most situations efficiencies reduce jobs and improve profits, more than they increase demand that would create more (or mitigate lost) jobs.
- xg15 3y agoYeah, that's essentially saying, "yep, your slice of the pie will become ever smaller, but that's fine, because what you get in absolute terms will stay the same - the pie just has to keep growing exponentially forever". It's obvious that this is not a sustainable solution. (And that's assuming the company fully passes the reduced labour costs on to the consumer and doesn't just pocket it as increased profit margins)