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
-
This Tweet is unavailable.
-
-
This Tweet is unavailable.
-
Replying to @laikasrefectory @QuasLacrimas and
Automation raises real wages by cutting the market clearing price of goods produced. There are problems with the modern world but "wages are too low to buy stuff" isn't even close to one of them. The problem is the breakdown of society and only elite wages buy you out of that.
1 reply 0 retweets 1 like -
Replying to @CovfefeAnon @laikasrefectory and
that’s not even true tho. it raises the marginal productivity of workers collectively and thus changes the demand schedule for wage labor (ie increases workers’ bargaining power)
1 reply 0 retweets 2 likes -
Replying to @QuasLacrimas @laikasrefectory and
It does both; even in cases where marginal productivity doesn't go up, purchasing power goes up. Cellists in string quartets have had zero increase in marginal productivity in live gigs yet still can afford much more stuff.
1 reply 0 retweets 1 like -
Replying to @CovfefeAnon @laikasrefectory and
that’s because the demand schedule for laborers who could potentially play cello includes both cello-labor and other skilled labor in sectors where productivity did rise a lot
2 replies 0 retweets 3 likes -
Replying to @QuasLacrimas @laikasrefectory and
Mea culpa - I was looking for a quick example where productivity hadn't increased yet real wages still went up due to dropping costs. What happened with cellists is that the market clearing level is at a lower quantity and higher price (downward sloping demand curves).
1 reply 0 retweets 2 likes
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.
-
-
Replying to @CovfefeAnon @QuasLacrimas and
Both effects of automation result in higher real wages - increased marginal productivity as well as increased purchasing power.
0 replies 0 retweets 1 likeThanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.