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Wait, what can robots do to increase the size of the pie as it were. The size of the pie represents the market. And the size of the global market is fed by the

Wait, what can robots do to increase the size of the pie as it were. The size of the pie represents the market. And the size of the global market is fed by the population of the earth. So while the population may be growing at some steady pace, it has nothing to do with automation except in cases where demand currently.overshadows supply. "Currently" is the key word here. No, automation is simply a tool for those who can afford it to cut out a large expense from their manufacturing process and increase profit. Not saying there's anything wrong with it. It's just you have to consider if nobody is left working and earning a decent living for themselves, then the size of the market starts to shrink.

colomon 12y ago
Are you implying that the only reason we appear to be more wealthy than, say, 18th century folks is because there are more people now?!?
rthomas6 12y ago
When a competitive industry cuts a large expense out of their manufacturing process, they increase profit and make cheaper goods. That's why Amazon is so successful, because they used technology to trim costs. Amazon also has small profit margins; they make up for small profit margins with high volume, which they get because of their low prices and convenience. To assume the size of the market is fed by the size of the population is to assume that human appetites for goods and services are finite. That is most definitely NOT the case. Some people want 100 fancy cars that they put in a garage or other ridiculous things. The size of the pie is what is available for consumption that people happen to want. Robots increase the size of the pie by making goods cheaper and more plentiful. That means people can consume more with the same amount of money... their money is worth more, so they're richer in real terms. For instance, if fancy cars were $10 each, you would be richer even though you have the same amount of money.

colomon 12y ago

Are you implying that the only reason we appear to be more wealthy than, say, 18th century folks is because there are more people now?!?

rthomas6 12y ago

When a competitive industry cuts a large expense out of their manufacturing process, they increase profit and make cheaper goods. That's why Amazon is so successful, because they used technology to trim costs. Amazon also has small profit margins; they make up for small profit margins with high volume, which they get because of their low prices and convenience. To assume the size of the market is fed by the size of the population is to assume that human appetites for goods and services are finite. That is most definitely NOT the case. Some people want 100 fancy cars that they put in a garage or other ridiculous things. The size of the pie is what is available for consumption that people happen to want. Robots increase the size of the pie by making goods cheaper and more plentiful. That means people can consume more with the same amount of money... their money is worth more, so they're richer in real terms. For instance, if fancy cars were $10 each, you would be richer even though you have the same amount of money.