• 4 Posts
  • 689 Comments
Joined 1 year ago
cake
Cake day: June 13th, 2023

help-circle












  • I think the underlying dynamic there is that automation in one industry led to cheaper goods, which led to consumer savings, which led to greater demand, which led to increased employment in other industries that eventually absorbed the displaced workers.

    The differences with the current situation are that, firstly, decades of corporate consolidation have reduced competition and enabled automators to channel most of the savings to corporate profits instead of lower prices; and secondly, the fact that automation is affecting the whole economy at once instead of a specific industry means that an economy-wide increase in demand doesn’t cause a corresponding increase in the demand for labor.