The real problem is how demand curve behaves when the price is approaching zero (which is what you eventually get as productivity increases).<p>Traditional economics assume that if the price of an egg is $1 you&#x27;ll eat one a day. If the price drops to 1c, you&#x27;ll eat 100 a day. But: Would you?<p>In other words, at some point we are going to live in the world where consumption cannot catch up with the production. What then? Surely, economy would collapse: Goods won&#x27;t be purchased and people producing them would be fired. Those fired would not have money to buy goods. The demand would decrease. More people will be fired. And so on until last human being dies of hunger.<p>I would even argue that in developed world we&#x27;ve already reached the limit and the economy is kept afloat only by desperate measures such as whipping up the consumption using ads, lowering the productivity by employing large numbers of paper pushers and so on.