Tag Archives: EPA

Bits and Pieces – 20170307, Tuesday

Commentary: One of the biggest problems facing us is the loss of jobs due to RAAI. Not only will we not be able to cope with the surplus labour but the double whammy of increased entitlement payouts and decreased revenue from income and sales taxes will lead to collapse in government finances. But there are other social implications as well: When Factory Jobs Vanish, Men Become Less Desirable Partners. This is another tear in our social structure.

Now view this 6-minute video also at the end of the article:

Automation is introduced to cut labour costs by displacing workers or increasing productivity. That is, automation enables an increase in production without hiring more workers. A company will do this to gain a competitive advantage or maintain one. Since competition is the dominant force in most markets, automation will only increase, particularly as its costs continue to drop while labour costs rise. When all humans have been displaced, the process will go on by replacing older robots with newer, more efficient ones. We are entering a future where there will be far fewer jobs, particularly well-paying ones. Simply put, we already have too many people in our societies.

Bits and Pieces – 20170124, Tuesday

Commentary: If Trump achieves half or maybe a quarter of what he wants to he will go down as a “great” American president. I suspect a significant piece of what he would want is impossible, not because of political obstacles but because some things will not be possible.

A lot of jobs that went offshore don’t exist anymore and can’t come back. Companies on-shoring will build new plants populated with robots and highly automated assembly lines. They would have done so anyway for economic reasons and this trend had started before Trump.

His trade policies may backfire. Raising tax barriers and tariff walls will start trade wars – may already have done so – so the imports will be cut but so will the exports. How this will affect the balance of trade is a question. In fact the trade deficits were the only way the US dollar could become the world reserve currency. Trump cannot control the currency – at least not for long. Any attempt to declare China a currency manipulator will lead to the depreciation of the yuan and strengthen the dollar, affecting exports and negating the effect of tariffs on imports.

He has a deeply divided country and he can’t fix this because the divide is to a large part caused by people who hate him and this he can’t change. Read: Trump: America for the Americans! He has inherited trillion dollar deficits and a 20 trillion dollar debt that goes as high as 200 trillion with unfunded liabilities included. The only fix for this is to press the reset button and the reset will be global.

This is going to be a wild ride.

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