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Originally Posted by rustyp
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And that's a good thing. Like your Turbotax example competition is usually good for the consumer. I am no longer a hostage to available appointment times and saved hundreds of dollars to boot. This new real estate rule will ultimately be good for the consumer. How do I know? The responses here by agents defending what they do for their princely salaries. If they truly believe there will be no impact why would they keep justifying to us what they do - post after post? 3D checkers - king me!
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really, so as machines replace people, what ends up is the modern version of the medieval times. fewer jobs paying into social security, fewer paying into taxes to support the infrastructure. The US will just keep having to borrow debt to support the country.
Medieval times was land and labor producing crops and managing animals.
Modern times is technology and near zero labor. . .
The US government is spending a trillion more every three months. Because the US has outsourced production for cheaper goods in place of jobs.
Here is a WSJ article which is behind a paywall, but let me paste a short paraphrase, as I can't see it either.
wsj.com
"The message will also mark an evolution for Yellen—and the end of a bygone era in U.S. economic thinking about China. Like other economists of her generation, Yellen, 77 years old, said the surge in Chinese exports at the start of the 21st century had seemed like a positive development, providing low-cost goods to global consumers. But the inexpensive exports also helped hollow out the U.S. manufacturing base in what became known as the China shock, leaving Americans out of work and fueling a political backlash to globalization."
The article quotes Yellen as saying: “People like me grew up with the view: If people send you cheap goods, you should send a thank-you note. That’s what standard economics basically says,” she said. “I would never ever again say, ‘Send a thank-you note.’ ”
interpretation from Michael Pettis:
This does indeed mark an astonishing discovery for "standard economics". People are not just consumers. They are also producers, and the extent to which they can consume does not depend on how cheap consumer products are, but rather on how much they produce. In the end, you can only sustainably consume an amount equal to what you produce. Economists are learning that cheap goods delivered through massive trade deficits do not increase consumption. They mainly increase debt. which is where we are now. increasing at $1 trillion every three months, because we love cheap things enough to throw away the golden goose of production
Michael Pettis wrote this article 5 years ago and its proving out today that the debt won't stop because we no longer produce enough. Machines and robots replacing people will just make this worse
Why U.S. Debt Must Continue to Rise - Carnegie Endowment for International Peace
retired finance guy