Astorre
Pierre-Normand
Athena
Your "if tomorrow everyone gets $1M, bread costs $1M" example could be instructive. As a thought experiment, it shows that nominal money isn't the same thing as real resources. But it's also an "extreme event-style" scenario: overnight, universal, unconditioned, with no or little matching change in the background neo-liberal free-market structures. Real policy proposals that aim to keep people solvent in an automated economy don’t have to look like that. Inflation depends on system-level constraints: whether the transfer is financed by taxes vs new money, whether the economy has slack or is supply-constrained, whether production can expand, whether rents/monopoly pricing dominate, etc. So "handing out money" isn’t automatically self-defeating (and often isn't in social democracies) It’s a collective design question about how purchasing power is distributed relative to real productive capacity. — Pierre-Normand
.Yes, Alaska pays its citizens an annual Permanent Fund Dividend (PFD) from oil revenue, not a "royalist tax," but a share of state mineral royalties, providing yearly checks to eligible residents (including children) ranging from a few hundred to over $2,000, funded by oil extraction, and used as a model for Universal Basic Income.
BC
if we simply start handing out money to people simply for living, inflation will instantly reduce this money to nothing. — Astorre
Athena
But the fact is that the working class has not seized control of the economy in order to protect itself. — BC
Sure, a million bucks for everyone all at once would be intensely inflationary, but that's not likely to be the case. — BC
Philosophim
BC
Janus
3. How will a market economy cope with this challenge? After all, if we simply start handing out money to people simply for living, inflation will instantly reduce this money to nothing. Prices will simply rise. For example, if tomorrow everyone had one million dollars, then a loaf of bread would cost a million dollars. — Astorre
Ecurb
In the end, it doesn't matter, since when we take over Canada, all of Vancouver will be ours, and maybe Minnesota and Manitoba will be merged. We'll lose our little chimney up there. — BC
BC
Astorre
1. Humans remain needed as consumers, but not as producers. Given that the population of our planet is much higher today than in previous times, the problem is intensifying. So, how should people earn their living? Perhaps they can fill a niche in services? But even this is not infinite and will eventually be automated over time. — Astorre
BC
We need to replace the autocratic industrial order with a democratic order and return to education for democracy. — Athena
BC
And finally, humans themselves. What should they do? What should they do? Even in everyday life, machines already do our laundry, robot vacuums, and so on. — Astorre
Astorre
I am grateful that I don't have to do my laundry by hand, beating it on rocks in the river. — BC
Janus
In my opinion, this is a classic view, but it doesn't fully take into account all economic factors. For example, the explosive growth of the US stock market and the rise in stock indices, as well as real estate, over the past five years wasn't due to a sudden shortage of stocks or real estate. It's simply that a huge amount of dollars were printed, and the excess ended up there. — Astorre
Astorre
Astorre
L'éléphant
It's been suggested that one solution is to provide a combination of government services and universal basic income for those that have been displaced by AI. Many workers just cannot retrain or transition fast enough to other field of work either due to age or abilities or economic reasons.1. Humans remain needed as consumers, but not as producers. Given that the population of our planet is much higher today than in previous times, the problem is intensifying. So, how should people earn their living? Perhaps they can fill a niche in services? But even this is not infinite and will eventually be automated over time. — Astorre
3. How will a market economy cope with this challenge? After all, if we simply start handing out money to people simply for living, inflation will instantly reduce this money to nothing. Prices will simply rise. For example, if tomorrow everyone had one million dollars, then a loaf of bread would cost a million dollars. — Astorre
Astorre
Would it?
Are you saying that competition for business would also disappear?
You just don't hand out money -- like during Covid. Yes, that's a good example of just handing out money. Let's use that as a lesson. — L'éléphant
And here's another thing to illustrate this dynamic: let's take a small town. Let's say, for example, that bread is produced by drones or fully automated systems. Then investing in such machines, owning real estate for production, or developing a business will only be profitable if this creates better conditions than simply receiving free money from the state. Otherwise, you can do nothing—the benefits will come anyway. This means that bread (or any other commodity) will be quite expensive relative to the "free allowance" because entrepreneurs or capital owners will demand high margins to motivate themselves to take risks and make efforts. Ultimately, the basic income may only cover the bare minimum, while real prices will rise, eroding purchasing power. This isn't pure inflation due to shortages, but rather a market distortion due to a lack of incentives for production and competition. — Astorre
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