1 thought on “Will robots and Artificial Intelligence ‘steal’ our jobs?”

  1. Posted 20/09/2016 at 09:38 | Permalink

    This really won’t be a problem. We are spending a greater proportion of our income on services largely because the cost of manufactured goods and food, etc. is falling compared to our income largely due to greater automation.

    However, these services generally haven’t fallen in price to the same extent because they are more labour intensive. This limits our consumption of them. But let us suppose that technology could double the productivity of restaurant staff (so that a restaurant would only need half the number of staff). As staff are probably the largest cost in running a restaurant, prices would fall – and this would drive greater use of restaurants by the public, thus increasing the number of restaurants. The impact on employment might not be great and even if it is, the lower cost of restaurants would leave us with more money to spend on expensive services provided by people (e.g. personal trainers). So whenever technology replaces people it does so because it cuts costs and therefore prices, thus freeing up money to be spent on other things which will employ people.

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