Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?
Indefinite, low inflation - inclusive of wages - is the expected and normal outcome of a continued functioning capitalist system. Inclusive of wages is key here, so the federal minimum wage is failing. Certain aspects of the economy are seeing runaway inflation even while CPI isn't as high as you might expect.
Outside of some really important key metrics (cough housing cough), spending power trends upwards over time at median wages. Prices are supposed to scale infinitely higher - slowly - and so are wages.
Realistically, why would they want to do that? An unemployed person doesn't pay taxes, doesn't buy your shit, doesn't act upon ads they see, they generate very little to no income.
You're assuming those types are sane and logical, given the wild speculation and clear assumptions we've been seeing for the last decade or so, I'm not sure that is the case.
Logically it doesn't make sense to put the vast majority out of work, if you actually cared about society as a whole, however I've seen very little evidence the AI crowd particularly care about society nor about the well-being of humanity.
I have seen plenty of evidence of personal greed and narcissistic personalities which is probably a more likely answer than anything more altruistic.
I agree shits fucked but turn everyone into serfs isn't the answer the tech bros think it is.
You claim that tech bros are insane, that they operate on wild assumptions and clear speculations, yet you yourself do exactly the same things and have a clear misunderstanding of basic economics. Cheers. Good chat.
They have cut labor as much as they can for the last 30+ years. I think lower prices will be just fine for actual workers. The parasite stocks must go up forever crowd will have a hard time accepting it, but they are like 1% of the population.
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u/StuartMcNight 8h ago
Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?