offshoring and automation are two distinct problems. automation is just capital deepening, it raises workers' productivity and wages. offshoring effectively expands the labor supply, it lowers US workers' wages
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My initial point was to give an explanation that in a toy model where even though automation didn't increase marginal productivity (hence the market-clearing price) of labor that automation would still increase real wages - not to deny that both effects happen.
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Both effects of automation result in higher real wages - increased marginal productivity as well as increased purchasing power.
End of conversation
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