The Coming Automation AbundanceSubmitted by chrome on Tue, 07/16/2013 - 08:37
Despite the dangers that automation in technology seem to pose to abundance from employment threats, automation is in fact causing abundance.
Look at recent history and prices have fallen. (all prices listed in 2013 dollars)
-Computers ($14000 to $300)
-Cell Phones ($12000 to $100)
-Movies ($50 to <$1)
-Music ($30 to <$1)
-GPS device ($400 to <$1)
It has gotten to the point where even people on welfare can afford the above things.
So if prices are falling does that mean wages fall too?
Well look at the above industries. How much did employees get paid when the prices were high and how much now? The same.
Why? Because their costs dropped and competition ensured that the savings were passed on to the consumer. It's about margin in business not raw selling price.
Thanks to automation, no product will be spared from dramatic price drops, including food and shelter. Houses can be 3D printed and robots can work farms.
Now, solar cells have just passed oil in $ per watt. Being based on semiconductors subject to Moore's Law, even the energy to do all the work for us is about to become close to free.
There's just one pitfall.
What if gov was selling the computers all along at the nominal 1990 price of $3000. Since nobody competes with gov why would the price ever have dropped. It wouldn't have.
We are on the verge of a near vacation for humanity, if only competition can be preserved.
So if someone tells you that Austrian economics is bad because it results in falling prices, tell them they don't know what they are talking about.
It is the way for us to conquer our basic needs leaving our only challenge left to be what our imaginations allow, thru art and space exploration.
The new dawn of mankind.