Thursday, Nov 12, 2015

The elephant in the room for housing, the low wage or no-wage automated economy

Guardian: Robots threaten 15m UK jobs, says Bank of England's chief economist

Automation threatens of all existing jobs in the UK and the “third machine age” will hollow out the labour market as never before, widening the gap between rich and poor. The third industrial evolution will intensify the trends seen in the first two and widen the distribution of wages thus resulting in a disproportionate share of labour’s income, “the space remaining for uniquely human skills could shrink further”. Labour’s share of the pie could fall even more dramatically and faster than in the past. “On this view, the tree would be so thoroughly hollowed-out that it may no longer be able to support itself.” Haldane suggests that increasing automation may already be depressing wage growth, explaining why inflation has consistently undershot the government’s 2% target.

Posted by enuii @ 07:27 PM (4548 views)
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1. Eddielomax said...

And in other news we need more immigrants to care for our aging population..

If we stopped all immigration tomorrow we would probably still have a surplus of manpower, but in today's centrally planned economy government has decided that care for the elderly and other such occupations must be paid less and the solution is importing cheap labor.

Friday, November 13, 2015 03:42PM Report Comment

2. libertas said...

Actually, what is driving this is the taxation of labour, which makes robots artificially economically viable. We can only compete if productivity from robots is taxed or, if human labour tax is reduced. It should be almost eliminated from non-skilled jobs, pushing it to consumption taxes.

This is the reality, for if automation was driving real productivity, our housing stock would not be in a total state and we would be building enough houses to meet demand.

Friday, November 13, 2015 11:42PM Report Comment

3. Pricedoutmouse said...

@1 Nonsense, it's not just the taxes. Robots aren't paid salaries either. It's only the people that install and service them that need those. Real productivity doesn't mean more houses would be built. Real productivity just means more profits for CEOs.

Saturday, November 14, 2015 07:42PM Report Comment

4. mombers said...

@Libertas, what's the difference between a consumption tax and a production tax? I don't think you're going to solve the problem of high tax on labour by taxing consumption...

Saturday, November 14, 2015 09:45PM Report Comment

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