Capital is increasingly producing greater returns than labour, and market pressure is causing businesses to invest in capital as a result... but what does the economy do when labour cannot produce or earn, and hence cannot spend?
Capital is increasingly producing greater returns than labour, and market pressure is causing businesses to invest in capital as a result... but what does the economy do when labour cannot produce or earn, and hence cannot spend?
Given our economic crisis, the IMF for example is forcing governments to raise taxes to insurmountable levels. In our country, many companies have to resort to tax evasion just for survival and now the government is trying to shove new taxes down our throats (because hey, let's not target the big tax evationists, but rather the stupid fucks that paid their taxes until now).
So when the taxes you have to pay for producing goods or services exceed your other operational costs, what do you do? Well, governments aren't taxing the usage of robots yet. Bingo.
I think we should be glad that automation happens. Because it's better for a factory to remain in your own country, even if fully automated, then it is to be outsourced to China. Even an automated factory generates local jobs, either directly (engineers, cleaning people) or indirectly (connected industries).
The economy ceases to do anything for labour, and then people start to fight.