What happens to a capitalist country when the jobs become automated?
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21-12-2012, 12:09 PM (This post was last modified: 21-12-2012 12:17 PM by FZUMedia.)
RE: What happens to a capitalist country when the jobs become automated?
Let's say central planning lead to all farming tools to be prohibited to increase jobs in agriculture, you could only work in agriculture without any kind of tools, back to the medieval ages- you understand what impacts that would have to the quality of life to everyone? Sure many many more people will be employed, but now your corn cob is $10, and the people that would otherwise put their work somewhere else for capital growth will no longer happen. You have to look at the hidden costs, where this is being done in smaller ways right now. Understanding economics is looking at the whole picture, it's a complicated universe.

Sure, automation sucks for those that are getting laid off for it, but it adds to the over all wealth of nations the more automation there is, as you can clearly see in our agricultural systems, we now have 10x more food than the medieval era. Those farming jobs are not permanently lost, they just evolve alongside the market to other jobs where they are needed- assuming the minimum wage isn't too high and the government stays out of people's trading (which it obviously doesn't) is where the problem is- not the capitalist geniuses that seek to improve efficiency. There will always be need for human capital, but the market is not static, no job is safe by definition and nobody 'owes' you a job.

Hope this answers your concerns.
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RE: What happens to a capitalist country when the jobs become automated? - FZUMedia - 21-12-2012 12:09 PM
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