Workingman wrote:So, we are going to have fewer people making things, meaning fewer people earning money to buy those things.
This is emotion talking not analysis.
People don't want to work in factories on production lines. I don't blame them I've done my stint at that. Very shortly bots are going to come in and be able to do the job with higher precision and less cost.
Did you really think that employers were going to accept over £20k minimum wage with depressed selling prices forever? Or that the minimum wage continues to rise?
Pretty soon they will have a choice. £25k each year for each human for an 8 hour day, 5 days a week if you are lucky; or $30k per robot, sunk cost plus maintenance, with a run time of 6 hours and a charge time of less than 2 hours working 7 days a week. After 3 years, even with replacing the bots every 3 years, they're in profit.
Let's face facts, the UK economy is 90% services anyway. Not manufacturing. If we want to move into manufacturing then we're going to suck bots in anyway.
The service economy will be driven by bot serviced manufacturing money and will provide jobs for humans. Things will change as they have changed. Ford gave us the production line in 1912. The only touch point between a Ford production line in 1913 and one in 2023 is that the vehicle progresses down the line and is worked on in stations where materials are brought to the station to be assembled on the vehicle. Human content? Over 90% reduction.
The last bastion of humans in the manufacturing space is now being removed. We have already seen way more disruption by autonomy than we will see with the last few humans being ejected by far more advanced bots.
The size of our economy is bound by the number of people who are able to work and be active in the economy. With bots this constraint is removed. The cost of producing a lot of things in the UK is prohibitive due to human costs. Replacing humans with Bots means the eventual size of the economy is bound by other constraints and the limits are a lot higher.
As the economy grows exponentially the ability to pay humans more in the service industry grows.
There is a net positive here but everyone wants to think of it in terms of "today". But it won't be "today" when these bots come on stream. It will be a whole different economy with a whole different value base. But I understand that we have started to produce a society who reject change as undesirable. OK change hurts in the short term. But change requires adjustment and once adjustment has happened, then things carry on.
Time to accept and move on.