@gonglei89 The easiest way to think of this is by simplifying it to a simple economy that just does two things: cleaning bathrooms and producing food.
Let's call it the Land of Urinalia, population: 10.
Let's call it the Land of Urinalia, population: 10.
@gonglei89 Historically 5 people did the work of maintaining bathrooms for everyone and 5 people produced food for everyone to eat.
@gonglei89 Then one day, 1 of them had an epiphany and invented a robot to do the bathroom-cleaning work.
He went to the 5 food-producers and said I will clean all the bathrooms in exchange for doubling my food rations.
He went to the 5 food-producers and said I will clean all the bathrooms in exchange for doubling my food rations.
@gonglei89 The food producers of course were ecstatic because now they only had to share 2 food rations to 1 person instead of 5 to 5 people before.
They could keep more food for themselves and are wealthier now, too.
They could keep more food for themselves and are wealthier now, too.
@gonglei89 But of course, the 4 others are not happy. They are out of a job and starving now.
They demand a share of the excess value creation or they will revolt. Nobody wants a revolution, everyone sits down to negotiate.
They demand a share of the excess value creation or they will revolt. Nobody wants a revolution, everyone sits down to negotiate.
@gonglei89 They accept a reduction in their rations from 1 unit to 3/4 of a unit.
In return they will sing & dance for the others in return for the food.
In return they will sing & dance for the others in return for the food.
@gonglei89 It is better work for them, because now they donβt need to clean toilets anymore.
So they are better off as well.
So they are better off as well.
@gonglei89 The 1 robot inventor is now getting more food than before.
The 5 food producers have the same clean bathrooms plus new entertainment.
And the 4 former janitors are doing a much easier job.
Society is better off.
The 5 food producers have the same clean bathrooms plus new entertainment.
And the 4 former janitors are doing a much easier job.
Society is better off.
@gonglei89 The key to all of this is making sure everyone is better off, in some way.
It comes down to how the gains from innovation are distributed.
It comes down to how the gains from innovation are distributed.
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