20 NOV 2018 by ideonexus
The Economic and Cultural Divide in America
For most of the last century, wages in poorer parts of America rose faster than wages in richer places, as inventions were put to work in the hinterlands. After Henry Ford invented the Model T, for example, workers on assembly lines all over the Midwest built it.
Now it’s just the opposite. Bright young people from all over America, typically with college degrees, are streaming into the talent hubs of America—where the sum of their capacities is far greater than they’d be separately.
...04 JAN 2012 by ideonexus
Shifting From Labor to Capital Reduces Demands
Finally, it’s easy to see how a shift in income from labor to capital would lead to a similar reduction in overall demand. Capitalists tend to save more of each marginal dollar than laborers. In the short run, a transfer from laborers to capitalists reduces total consumption, and thus total GDP. This phenomenon is summarized in a classic though possibly apocryphal story: Ford CEO Henry Ford II and United Automobile Workers president Walter Reuther are jointly touring a modern auto plant. Fo...Folksonomies: employment automation
Folksonomies: employment automation
Because the workers automated out of jobs can't buy things.