Think of a society where there is a collective bank account and everyone shares their wealth. There are 100 people and there is 800 hours of work to be done. 100 hours of work in fast food. If you automate fast food then only 700 hours of work have to be done for an economy of the same size.
The real problem is fairness. Now that there is enough work for 88 people it would be unfair for the working people if those 12 people simply get to stop working. The remaining working members would go on strike. So we expect those 12 unemployed people to work regardless of whether there is enough work for everyone.
Globalization is another productivity booster that has the same effect.
The answer is to give people work, even if the work has to be created through artificial means. Infrastructure is a common example. You can just let these unemployed people build roads or houses and lay fiber for internet and so on. Infrastructure doesn't discriminate and tends to benefit everyone so ultimately even those who didn't lose their job will benefit. If that infrastructure results in a greater tax income in the future you can even finance it through debt.
I don't agree with this, but even if I did, we all know that in practice automation leads to a transfer of wealth from the working class to the very richest, that own the automated companies.
Think of a society where there is a collective bank account and everyone shares their wealth. There are 100 people and there is 800 hours of work to be done. 100 hours of work in fast food. If you automate fast food then only 700 hours of work have to be done for an economy of the same size.
The real problem is fairness. Now that there is enough work for 88 people it would be unfair for the working people if those 12 people simply get to stop working. The remaining working members would go on strike. So we expect those 12 unemployed people to work regardless of whether there is enough work for everyone.
Globalization is another productivity booster that has the same effect.
The answer is to give people work, even if the work has to be created through artificial means. Infrastructure is a common example. You can just let these unemployed people build roads or houses and lay fiber for internet and so on. Infrastructure doesn't discriminate and tends to benefit everyone so ultimately even those who didn't lose their job will benefit. If that infrastructure results in a greater tax income in the future you can even finance it through debt.