Name something you could be happy doing every day. Imagine if your favorite hobby, or most intense intellectual interest, could be your full-time job. And imagine if full time meant spending just a few hours per day on your work.
That is the future with automation. Here’s how it works:
The Economics of Automation: Automation lowers the overall cost of goods and services by increasing efficiency. Robots can often perform tasks quicker than humans, and work around the clock. One estimate says by 2025, robots can decrease the cost of labor in the U.S. by 22%. And that estimate is accounting for only automating 25% of jobs that could be automated.
This reduces the costs to consumers, which allows your money to stimulate other sectors of the economy.
The money a company saves through automation can likewise be invested elsewhere. By definition, this is a more productive use of those funds. Because of automation, the same amount of resources can produce more wealth.
Even if the company gives the shareholders the extra profits, this stimulates the economy wherever the investors choose to spend the money.
And even if they bank the money instead, this lowers the cost of borrowing money, which means more people can afford debt like home loans and business loans.
But what about the workers that got laid off?
Remember that automation increases overall efficiency, so the economy as a whole is left in a better position with more wealth. That said, workers in particular industries will be displaced when their jobs are automated. That is why it is important to have a diverse skill set and be adaptable to change. That is what the failing public school system shouldbe focusing on. They are stuck in a factory mindset.