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When a machine replaces the work of a man, that man (who had the ingenuity to create a machine, say a fishnet, and take a risk) can make his products to you a l
by legolandbridge 13y ago
When a machine replaces the work of a man, that man (who had the ingenuity to create a machine, say a fishnet, and take a risk) can make his products to you a lot cheaper than it otherwise would be if he had to hire tons of laborers. That is where you benefit. When the price of a car becomes reachable all of a sudden, or a tv, or plumbing, or common items like socks are $5 and not $100. The standard of living should rise through automation and increase productivity. Instead everyone is fighting for higher wages, higher protection, weaker currencies... and ever-rising prices across the board.
- aspensmonster 13y agoAnd what happens when enough work becomes mechanized or automated and enough people are out of jobs that it doesn't matter how low the resulting price of the product is? I call this the Wal-Mart effect. The idea is that you don't have to pay higher wages, or provide better benefits, or otherwise ensure that the increases in productivity track with increasing real wages. Because everyone can just shop at Wal-Mart! Ever-decreasing prices are not a panacea.