Productivity boom or profit boom. I know all too well that technology creates jobs but it destroys them too.
The problem is that Micheal who used to drive a bus is faced with quite a challenge getting a job as a BI analyst for a marketing firm locally and he’s not too happy about alternatives such as a QC analyst in a factory that makes RFID chips - because those jobs are in Brazil or Vietnam.
I fear this boom will make the squeezed middle smaller and smaller until they cannot be taxed enough to pay for the public service and the unemployed any more.
Not so much these days, the new tech is often cheaper than decommissioning and reinstalling the old tech, or simply installing the new stuff.
Gone are the days when stuff was built to last decades, even commercial grade stuff has a far shorter life than their predecessors.
Just watched, recommended viewing. There are definitely big changes ahead in cars, energy and the labour force.
To take the really cynical view about the youtube above would be that yay cars are going to be so cheap that more and more money will be pumped into asset bubbles to the point where nobody can afford a car the only difference then being that you cant just hop in a car at any time and have less freedom to do as you please
Its not an entirely crazy scenario…look what happened when we shifted to dual incomes per family. We didnt get twice as rich, we put twice as much into mortgages!
Throw in the end of human manufacturing and automation of even admin/reporting. Who even needs expert advisors when you have business intelligence/data mining etc
The system for the last few decades in the US (and now in Australia), for example, has simply accumulated wealth in smaller and smaller circles while the real wage decreases.
Humans are in an unfair position against robots and software. Humans have to be paid and in a lot of Western Countries the Company also has to pay national insurance contributions per employee. Robots only pay tax when they are purchased and on the energy and parts they use.
The crunch will come when Western Governments see a reduction in their tax take, which in the Globalised era of the freeflow of captial is increasingly from income tax. We’re already there.
The Corporations get their wealth from the means of production. The Governments get theirs from its labour force which is under threat.
As corporations have demanded the same rights as people, I think we should move to taxing corporations with personal rates of tax - do away entirely with the distinction between personal and business rates…
I hadn’t fully grasped before that Uber’s loss making with human drivers isn’t necessarily to drive out the non-Uber current competition and raise the price later. It is to get a huge customer base with the plan to replace their costly drivers with driver-less.
We have seen manual factory jobs move to low cost countries and big pressure on non-regulated fields with “off-shoring”. The protected professions (law, medicine, pharmacy, architecture) with legal protection towards professional bodies have been relatively un-hit so far…
Exactly, and if they break the law they should be prosecuted like people. Someone is killed by the company by them releasing a knowlingly dangerous product the Company becomes the property of the State for 30 years like flesh human beings and all profits it generates goes to the Government and/or the affected parties.