The AI Unemployment Anti-FAQ (2013)
The problem with this explaination is that it focuses on the technical aspect and not on the economical one : how is the value created shared among the people in the economy?<p>Technological progress allows concentration of power in the one who holds the capital, as he will be the main one to benefit from a more efficient capital : with the new machine you can make 15 buns whereas you made less with the new one. The employee is not paid more : the capitalist earns the cost saved.<p>Problem is that the capitalist doesn&#x27;t spend 100% of his income : he will consume some, invest some and save the rest in unproductive accounts or stocks. He may produce 50% more hot dogs, but the demand will not follow.<p>Economics theory says that in this case prices may go down, but that would mean a lowering of the capitalist&#x27;s profits. He may in this case reduce quality in order to lower the prices while preserving his margins.<p>Hence we see here 3 things : accumation of capital in a few hands, an era of deflation and low yields due to low demand and high monetary stock needed to be invested, and a reduction of quality of the product.<p>The last one is counter intuitive but may be seen in reality : buildings have reached the point where it&#x27;s commodity, replaced every 30 years, clothes are worthless and the quality of food has been decreasing for the last 30 years (at least in my country, France).<p>If we get richer everyday, why can&#x27;t we make buildings that are aesthical, solid and durable anymore? Why is quality food reserved only for rich people?