Timmy elsewhere

At the ASI.


On the rise of the robots

3 thoughts on “Timmy elsewhere”

  1. Tim, re Points 3) & 4):

    “3) The assumption is that capital will become more productive in a robot world. That’s why we’ll have to tax the snot out of capital. And capital will indeed become more productive: which is why its value will fall. Yes, you read that right. When something becomes more productive this is equivalent to stating that we’ve made more of it. Thus more productive capital means we have more capital and the price of something that becomes in greater supply falls, not rises.

    4) The last time we mechanised a significant area of life was probably farming back in the 1920s and 30s. Agriculture become significantly more productive. What happened to the price of land? Yup, it sank like a stone and the farmers have been on the public teat ever since.”

    Excellent. Thank you.
    This is somewhat counter-intuitive, but when you work your way through the mechanics, it does make sense. Again, thank you.

  2. Pingback: Rise of the Machines: Innovation leads to gales of “creative destruction” | motorcitytimes.com

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