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You can only extract profit from the margin of efficiency your capital adds. If people can artisanally make ice cream for $1/cone, and a million-dollar factory
by mminer237 2y ago
You can only extract profit from the margin of efficiency your capital adds. If people can artisanally make ice cream for $1/cone, and a million-dollar factory can make it for 10¢/cone, you can extract some portion of that 90¢. If the efficiency gains aren't large enough or you don't pass enough of your gains on to the consumers, you'll just out-competed by the artisans. So it's unfortunately the biggest innovations that hurt workers and benefit consumers the most.