Reply to post: Re: Errrm

Basic income after automation? That’s not how capitalism works

David Paul Morgan
Coat

Re: Errrm

there's a phrase in economics - something called 'inferior' goods?

anyway, certain products become so inexpensive to make, that, theoretically, at zero 'cost' goods should tend to 'infinite consumption'. clearly, if bread is 'zero' there's only so much you can 'consume'.

For TV's, as an example, the key here was the technology and the patents. When europe switched to colour, Philips, Thorn et.al. kept hold of the PAL patents, allowing Europe to keep its manufacturing base. Hence, Philips, Ferguson (Thomson, JVC [J2T]) and (yes!) Sony TV's made in europe. (at one time, Sony near Bridgend made most of their Trinitrons for the euro market here). However, come flatscreen and HD, all the TV's are made in China and Korea.

Once a 'good' becomes a commodity, then yes, you can own 2, 3 or 4 at low cost, but they quickly reach saturation point. But, 'robots', to quote Henry Ford, don't buy cars - people do.

I've forgotten my point now...

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