Wednesday, June 15, 2011

where businesses are putting their money

The post Man vs. Machine on the NYTimes blog Economix is closely related to my ongoing discussion of Martin Ford's The Lights in the Tunnel, and lends support to his contention that economists are wrong in their off-handed dismissal of the possibility that automation/AI/robotics may produce permanently high unemployment, resulting in the collapse of the economy, unless something is done to preserve consumer spending power despite unemployment.

The comparison between change in spending on equipment and software versus change in spending on payroll and benefits is particularly telling. Employee compensation is growing, but at about one tenth the pace.

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