Johninch
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zoobyshoe said:Who is going to pay for all this automation and who is going to but the products? If no one has a job no one will have any money. Your notions seem to dismiss any known economy. Basically nothing ever happens unless some human or group of humans makes a lot of money off it.
Our capitalist system has already started on the automation and labor saving path in order to protect profits and the result is a higher level of permanent unemployment is many advanced countries. The process is gradual. Large companies, who have the most "fat" in terms of excess labor, shed it at every opportunity and excuse.
In the 20 years leading up to my recent retirement, my financial job in a large pharmaceutical company was transformed by computerisation – productivity climbed tremendously, staffing was slashed and big bonuses were introduced to help this process. Make no mistake, the developed world is on track to produce more output at lower costs with less labor.
Social security in its various forms puts money into the pockets of the non-employed. It’s a constant struggle to keep pace with the economics of the underdeveloped world - China, Taiwan, Thailand, Indonesia, Korea and there are many Asian countries like India who have hardly started. It’s a rat race, and developed countries are going to have to automate a lot more, otherwise outsourcing will decimate western industry.
I don’t have the answer to growing unemployment and increasing social security costs – ask a sociologist. I’m only evaluating the current situation and where it is leading. Higher productivity through automation is the only way. Even China is starting to automate. How you distribute the profits is a social question.
A lot goes into taxes and pension funds which spread the money around. Since it’s not enough, we fill the gap by printing more. This is not the right way to go - it's a measure born of desperation. In Europe we don’t want to print so much money, with the result that certain economies are going down the drain. This is not a “known economy”, it’s a serious problem and a big challenge. But we won’t solve it by restricting automation in favour of jobs.
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