Robots

Apropos of absolutely nothing…

Ryan Avent delves into the subject of automation and robotic labor undermining low-skilled workers:

But this is silly. Why? Machine and robotic resources aren’t free; they’re resource constrained just like everything else is resource constrained. We have the tecnological know-how to replace millions of human workers with machines right now, but we don’t because the expense of building, programming, operating, and maintaining the machines is too great. It’s not worth it. As demand for human labour falls, the price of human labour will also fall making the hiring of humans more attractive. Meanwhile, as demand for robot labour increases, the price of robot labour will also increase (since the stuff robots are made of is scarce), making the use of a robot for any given task less attractive. There will then be some market equilibrium which will, in all likelihood, involve plenty of employment for low skilled workers.

That’s all well and good, but I’d still stock up on Old Glory Robot Insurance if I were you.

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