2 ms·
Correct. This effect is known in economics since forever - new technology has - An "income effect". You use the thing more because it's cheaper - new usecases
by VHRanger 2y ago
Correct. This effect is known in economics since forever - new technology has
- An "income effect". You use the thing more because it's cheaper - new usecases come up
- A "substitution effect." You use other things more because of the savings.
I got into this on labor economics here [1] - you have counterintuitive examples with ATMs actually increasing the number of bank branches for several decades.
[1]: https://singlelunch.com/2019/10/21/the-economic-effects-of-automation-arent-what-you-think-they-are https://singlelunch.com/2019/10/21/the-economic-effects-of-a...