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Surely as more and more people are displaced from the middle class aggregate demand for goods will fall -- the jobless or those working for low wages in warehou
by aschearer 14y ago
Surely as more and more people are displaced from the middle class aggregate demand for goods will fall -- the jobless or those working for low wages in warehouses will not have enough money to upgrade their phones, computers, televisions, etc. every couple of years. Wouldn't the fall in demand lead to a corresponding drop in investment in automation? If fewer and fewer people can afford to purchase an iPad does Apple still build automation to produce twice as many per hour? It seems to me that the pace of technological advancement is linked to consumer demand and that hollowing out the middle class will in turn retard the advance of automation.
TLDR: Capitalists deploy capitol in order to make a profit. To do so requires a customer to sell to. If we shrink the middle class enough will there still be enough customers to justify investing capitol in automation?
- eli_gottlieb 14y agoThis is the underlying cause of the Great Recession, according to an increasing number of credible economists (ie: Paul Krugman took up this view recently).