1/4
people are often confused about the impact of automation on employment and the consumption balance. One argument is that automation and robots will reduce the number of workers needed, and so also reduce the consumption share of GDP.
scmp.com/economy/china-… via @scmpnews
people are often confused about the impact of automation on employment and the consumption balance. One argument is that automation and robots will reduce the number of workers needed, and so also reduce the consumption share of GDP.
scmp.com/economy/china-… via @scmpnews
2/4
One of the experts cited here makes this point: "Automation helps upgrade manufacturing and the supply chain, but it does little to help domestic consumption and the ageing problem.”
One of the experts cited here makes this point: "Automation helps upgrade manufacturing and the supply chain, but it does little to help domestic consumption and the ageing problem.”
3/4
This isn't really true. Automation and robots increase the productivity of workers, and if wages keep pace with this increase in workers' productivity, employment and consumption will rise in line with production.
This isn't really true. Automation and robots increase the productivity of workers, and if wages keep pace with this increase in workers' productivity, employment and consumption will rise in line with production.
4/4
That's because in that case workers who are replaced by robots will find new jobs servicing the higher consumption of the remaining workers. Automation is always a good thing if the associated rise in productivity is matched by rising wages.
That's because in that case workers who are replaced by robots will find new jobs servicing the higher consumption of the remaining workers. Automation is always a good thing if the associated rise in productivity is matched by rising wages.
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