by What happens as the few workers we see in these videos below are no longer needed? And, even more importantly, when middle class and professional jobs get hit by the same trend through AI and more sophisticated software?Capitalism has both a supply-side and demand-side. As more and more work is done by machines or software, the relationship between aggregate demand growth and private sector employment growth will start to break down – or at the very least become very weak. Eventually, a government will not be able to stimulate aggregate demand as an effective solution to unemployment, because this will tend to cause more use of machines, not human beings.The solution to this is obvious: governments need to do much more to manage the demand-side. They need to find economically and socially useful work that can still be done by human beings and also move towards a guaranteed basic income. If you want income above the guaranteed basic level, you will still need to do some work of value to human society and civilisation (e.g., science, medical and technology research, helping development in the third world, human social services etc.).
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Lord Keynes considers the following as important: automation, demand-side, future, guaranteed basic income, robotics
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Capitalism has both a supply-side and demand-side. As more and more work is done by machines or software, the relationship between aggregate demand growth and private sector employment growth will start to break down – or at the very least become very weak. Eventually, a government will not be able to stimulate aggregate demand as an effective solution to unemployment, because this will tend to cause more use of machines, not human beings.
The solution to this is obvious: governments need to do much more to manage the demand-side. They need to find economically and socially useful work that can still be done by human beings and also move towards a guaranteed basic income. If you want income above the guaranteed basic level, you will still need to do some work of value to human society and civilisation (e.g., science, medical and technology research, helping development in the third world, human social services etc.).