2 ms·
The machine still has an equivalent annual cost to compare to the workers salaries. Some things that you now have to pay for with machine labor compared to huma
by fred_durst 12y ago
The machine still has an equivalent annual cost to compare to the workers salaries. Some things that you now have to pay for with machine labor compared to human labor below:
1. Up front payments: Parents and schools subsidized the manufacturing cost of human workers. With machine labor that cost is passed on to the buyer.
2. Energy: Employees feed themselves via their salary, or is often the case with subsidized food stamps. With machine labor the cost of energy falls entirely with the owner.
3. Replacement: If employees die or are otherwise unable to work do to catastrophic events, they can be replaced immediately with little on-boarding cost. If machines fail catastrophically the investment is lost(or needs to be backed up with insurance). Also, on-boarding the new machine requires specialized higher wage human labor.
4. Repair and modernization: As machines age they incure greater upkeep costs. They also become obsolete by newer machines. As employees age and become less capable of performing their duties, they can be let go, free of charge, for poor performance and replaced with a younger worker.
Much like was discovered with slavery and indentured servitude, ownership of labor and free labor can be fairly close in cost if you know how to really exploit workers effectively. Harvesting in agriculture is an interesting place to look at how competitive exploited human labor can be compared to machine automation.
- eru 12y ago> Harvesting in agriculture is an interesting place to look at how competitive exploited human labor can be compared to machine automation. Any business were machines having taking over, yet, is an example of that.
- fred_durst 12y agoAgriculture is unique in that farmers will vary their choice season to season based on what is cheaper. It shows that low skilled labor is still very competitive, simply because of how incredibly cheap it is. There is much more incentive to turn an $80K a year programming position into a $30K a year lower skilled position using point and click tools to achieve the same task as the margin differences are much much higher. EDIT: You must remember that machine automation is not infinitely and immediately scalable the way software automation is. With agriculture, automation providers can only manufacture enough to meet current demand and cannot simply lower prices increase volume and market share because they have real raw material floors to their costs.