Switch Theme:

Domino's experimenting with autonomous cars for driverless pizza delivery  [RSS] Share on facebook Share on Twitter Submit to Reddit
»
Author Message
Advert


Forum adverts like this one are shown to any user who is not logged in. Join us by filling out a tiny 3 field form and you will get your own, free, dakka user account which gives a good range of benefits to you:
  • No adverts like this in the forums anymore.
  • Times and dates in your local timezone.
  • Full tracking of what you have read so you can skip to your first unread post, easily see what has changed since you last logged in, and easily see what is new at a glance.
  • Email notifications for threads you want to watch closely.
  • Being a part of the oldest wargaming community on the net.
If you are already a member then feel free to login now.




Made in au
The Dread Evil Lord Varlak





 Grey Templar wrote:
And where does that money come from?

I guarantee that you could not make it by taxing the few people who would still be working and making wages in this hypothetical situation. And since all your government functions would have to be funded by taxing the few working people, you'd have even less $$$ than you might have otherwise.


Of course you can make it by taxing the remaining workers. When productivity and wages shift to a smaller remaining workforce those workers command a greater income. So those workers can still be ahead of where they were before, and still ahead of those without a job.

Consider an economy of 10 workers, they produce $1,000 of stuff, and they all get an equal share, $100 each. Then tech changes mean only half as many hours are needed to produce as much stuff, and resource limits means the surplus labour can't go in to any new areas of work.

Option 1 - The remaining 5 workers each claim $200. The 5 unemployed workers starve to death.
Option 2 - The remaining five workers each claim $200, but each pays $80 in tax, leaving them with $120 each so they're better off than they were before. The 5 unemployed workers each get $80, so they're not as well off as before, but they're not starving.
Option 3 - All 10 workers agree to work half as many hours as they used to. Everyone gets $100 like they used to, but they work half as many hours.

It's the problem that Post-Scarcity has.


This isn't about post-scarcity. That's long distant, and possibly will never happen. But the actual problem being discussed here, permanent surplus labour, could be upon us within a generation, and early parts of it could have already happened.

What you're doing is walking up to the Wright Brothers and asking them why the Concorde failed.

It's self-defeating on multiple counts. 1st, it can never come into existence because the transitional system between a Capitalist system and a Post-Scarcity system will immediately, and without exception, fail. The social turmoil will simply result in a regression back to ordinary economic systems.


You're assuming that social and economic changes are built around conscious decisions to move from one structure to another. This is wrong-headed. Most major social and economic changes occur through unguided processes, mostly tech development that flows through the rest of the economy in unguided and often unpredictable ways, driving economic and social changes which drive further changes. No-one decided to have an industrial revolution. No-one decided to end the age of mercantilism. These things were the product of unguided forces.

The real way to look at this is to see what changes are coming, and try to answer as best as possible how we should react, and how we will react. We are approaching an age where the default form of capitalism - increase productivity, put surplus labour in to new forms of production by drawing in more natural resources, thereby increasing total production - is coming up against a hard barrier, because the resources are coming to a point of full exploitation. If that barrier is hit, which is more likely than not, then there will be changes

The 2nd pitfall is that, in a theoretical Post-Scarcity society which has somehow actually come into existence, this society requires a complex governing system to simply dole out the resources, but no individual person has any motivation to contribute to it's function. Nobody will want to do maintenance on the army of robots which actually do the manual labor, after all he doesn't get paid. Everybody gets the same "compensation". He has no motivation to do anything other than entertain himself. He'll always get fed and have the same luxuries as everybody else.


At no point was it ever said that everyone had to be paid the same. That's something you have invented out of nothing. Read what is actually being written.

I mean, it's just so frustrating that this complaint comes up every time this issue is raised. This idea that surplus labour can't be addressed because then everyone would be paid the same and there'd be no incentive to work. But right now we have transfer payments where government taxes workers and pays unemployed, parents, low income workers etc. This system maintains an incentive to work by having workers still have considerably more than people get on transfer payments.

So the problem of removing the work incentive not only has an obvious solution, but it's a solution we use right now in every modern economy. And yet this 'problem' is still guaranteed to come up every time this issue is mentioned. Why? What is going on to produce this baseless reflex response?


Automatically Appended Next Post:
 Grey Templar wrote:
Sure, but just saying "society will reshape!" isn't some magic wand you can use here.


No, but accepting the reality that society will reshape is simple reality. The question is how it will change, and how much we can direct that change.

As such, the line you've attempted here, which seems to accept the predicted future economic conditions, but refused to accept that society will adapt to new economic realities is not a viable approach.

This message was edited 4 times. Last update was at 2017/09/05 05:41:01


“We may observe that the government in a civilized country is much more expensive than in a barbarous one; and when we say that one government is more expensive than another, it is the same as if we said that that one country is farther advanced in improvement than another. To say that the government is expensive and the people not oppressed is to say that the people are rich.”

Adam Smith, who must have been some kind of leftie or something. 
   
Made in gb
Wolf Guard Bodyguard in Terminator Armor




 sebster wrote:


Of course you can make it by taxing the remaining workers. When productivity and wages shift to a smaller remaining workforce those workers command a greater income. So those workers can still be ahead of where they were before, and still ahead of those without a job.

Consider an economy of 10 workers, they produce $1,000 of stuff, and they all get an equal share, $100 each. Then tech changes mean only half as many hours are needed to produce as much stuff, and resource limits means the surplus labour can't go in to any new areas of work.

Option 1 - The remaining 5 workers each claim $200. The 5 unemployed workers starve to death.
Option 2 - The remaining five workers each claim $200, but each pays $80 in tax, leaving them with $120 each so they're better off than they were before. The 5 unemployed workers each get $80, so they're not as well off as before, but they're not starving.
Option 3 - All 10 workers agree to work half as many hours as they used to. Everyone gets $100 like they used to, but they work half as many hours.



Except this is not how it works in a capitalist system. The 5 remaining workers will not get an increase to $200. They will not get an increase at all, but will be told they're lucky to still be employed. And since there's 2 guys for every job, how about a wage reduction to "keep the business competitive"? Because Joe who just got fired will be happy to take any work for $80 instead of the $100 he used to have and you're still getting, because he has mortgage/insurance/car payments to make, and a wife and child(ren) to feed. And if we don't reduce our wages, our competitor will, and will undercut our price, and we'll go out of business so nobody has a job anymore.
   
Made in gb
Fixture of Dakka






 -Loki- wrote:
while Dominos are... I think $8au?


That's the flip side of complaining about expensive GW minis; a large Dominos pizza here is fourteen quid for a cheese & tomato.
   
Made in us
Decrepit Dakkanaut






Springfield, VA

Bran Dawri wrote:
 sebster wrote:


Of course you can make it by taxing the remaining workers. When productivity and wages shift to a smaller remaining workforce those workers command a greater income. So those workers can still be ahead of where they were before, and still ahead of those without a job.

Consider an economy of 10 workers, they produce $1,000 of stuff, and they all get an equal share, $100 each. Then tech changes mean only half as many hours are needed to produce as much stuff, and resource limits means the surplus labour can't go in to any new areas of work.

Option 1 - The remaining 5 workers each claim $200. The 5 unemployed workers starve to death.
Option 2 - The remaining five workers each claim $200, but each pays $80 in tax, leaving them with $120 each so they're better off than they were before. The 5 unemployed workers each get $80, so they're not as well off as before, but they're not starving.
Option 3 - All 10 workers agree to work half as many hours as they used to. Everyone gets $100 like they used to, but they work half as many hours.



Except this is not how it works in a capitalist system. The 5 remaining workers will not get an increase to $200. They will not get an increase at all, but will be told they're lucky to still be employed. And since there's 2 guys for every job, how about a wage reduction to "keep the business competitive"? Because Joe who just got fired will be happy to take any work for $80 instead of the $100 he used to have and you're still getting, because he has mortgage/insurance/car payments to make, and a wife and child(ren) to feed. And if we don't reduce our wages, our competitor will, and will undercut our price, and we'll go out of business so nobody has a job anymore.


This is exactly right. Capitalism will either come down, or people will starve. When the 10 workers get reduced to 5, the company gets to keep 500 dollars for the investors/CEO/stuff, and the other 5 keep working for $100 each, and are probably happy to be employed while the other 5 starve to death.

That, or other companies will pay the other newly-unemployed 5 only $80, or even $50 for the same work, dropping the first 5 to the same level if their company wants to stay competitive, which still puts money into the pockets of the investors or CEOs (10 workers at $50 each is still 500 dollars savings to go into the profits).
   
Made in us
Secret Force Behind the Rise of the Tau




USA

 sebster wrote:
And yet this 'problem' is still guaranteed to come up every time this issue is mentioned. Why? What is going on to produce this baseless reflex response?


Because political ideology demands it, but most people are fully capable of realizing reality doesn't conform to it so they end up trapped in an ideological box that basic reason tells them doesn't hold up, but political identity demands they maintain.

This message was edited 1 time. Last update was at 2017/09/05 19:42:41


   
Made in au
The Dread Evil Lord Varlak





Bran Dawri wrote:
Except this is not how it works in a capitalist system. The 5 remaining workers will not get an increase to $200.


It was an abstract system that didn't differentiate management/ownership and labour. You can make the 1, 2 or all 5 of remaining employees owners and managers if you want, it doesn't matter. The point of the example was to show how when total production remained the same, then a tax and redistribution can offset the impact of some workers being cut out of the system.

You are right that there's nothing saying that the redistribution will happen for sure. But note the question I was responding to - Grey Templar guaranteed that you could not make the money by taxing the remained. So I showed him that it wasn't only possible, it was very simple.

Whether or not it actually happens then becomes a political issue, not an economic one. Note that I laid out a whole bunch of possible outcomes, including ones where a whole lot of people get shut out of the new economy permanently. Which path on that route we take is then a political question.


Automatically Appended Next Post:
 LordofHats wrote:
Because political ideology demands it, but most people are fully capable of realizing reality doesn't conform to it so they end up trapped in an ideological box that basic reason tells them doesn't hold up, but political identity demands they maintain.


I think that sums it up pretty well. Economic debates seem to be driven more by self-identification than, you know, actual economics.

Which is understandable up to a point, I guess, but it gets very frustrating when people dress up their political ideology with pretend economics, and declare that's how things must be.

This message was edited 2 times. Last update was at 2017/09/07 02:03:59


“We may observe that the government in a civilized country is much more expensive than in a barbarous one; and when we say that one government is more expensive than another, it is the same as if we said that that one country is farther advanced in improvement than another. To say that the government is expensive and the people not oppressed is to say that the people are rich.”

Adam Smith, who must have been some kind of leftie or something. 
   
 
Forum Index » Off-Topic Forum
Go to: