Tag Archives: inflation

WHAT IS LIKELY WHEN ROBOTS AND COMPUTER SOFTWARE STARTS TO CONTROL MOST THINGS???

When computer automation takes over most jobs, who will be in a position to consume products and services without earned income? Well, obviously those maintaining the technology will be in the forefront with more than decent wages but the vast majority will be on some form of government welfare and on a fixed income.

Politically this is a little scary because the overwhelming majority will always vote for more welfare money and this could enslave the remaining elite working class and make them slaves supporting the welfare class. I would strongly suggest that we reduce the votes of those on welfare to a fraction of one vote so that the vote of the minority working class has more clout. Of course this will need a constitutional amendment which is probably highly unlikely to pass.

The robots will be the new dominant workers and it makes sense that they will eventually be taxed to fund all the humans which they have replaced and now will be living on welfare. A guaranteed annual minimum wage without working has already been proposed so effectively most will not be working but just spending money given by the government. The political and social ramifications are revolutionary but the financial ramifications are revolutionary also where financial growth is going to be dependent on an increase in robot productivity and not human productivity.

There will be no credit for those on welfare so spending and their income will only rise if their government benefits will. Inflation will be less of a problem because there will be over production. Monopolistic production may be in the hands of relatively few so prices and inflation may rise because of product price increases in the monopolistic economy.

Most humans will no longer own their own cars, own homes, and recreational vehicles but will be renting them if they save up enough money. They will be riding around in hired driverless vehicles, living in apartments, having few if any offspring, and spending most of their time at home. They will be eating, drinking, doing drugs, having sex, and spending most of their time online in search of entertainment or if smart, seeking further useful educational advancement.

For some, not having to work sounds like utopia but for others it is a kind of dystopia or permanent retirement from life with all its possible adventures, anxieties, stresses, and tragedies. Was human kind meant to live in retirement mode or will it cause a dramatic increase in health problems, addictions, and mental illness? Only time will tell.

Small businesses will dramatically decrease because the initial capital investment in them will be huge and the probability of failure extremely high. Specialty internet small businesses may still thrive but employed workers for these enterprises will probably be minimal.

Actually what I have outlined so far is a likely scenario if a country is self sustaining  or self supporting and produces everything that it consumes. Realistically we are in a competitive worldwide environment of relatively free trade and the threat of financial national bankruptcy is a greater threat than is that of robotization. If you just keep spending and producing very little for consumption or export bankruptcy is inevitable.

Other countries are becoming more competitive and are producing products more cheaply than we could ever hope to. The United States will have relatively cheap products from around the world but the budget deficit will grow by leaps and bounds.

International banks, corporations, and institutions have more political clout than that of any one nation. Wealth is being spread worldwide and the United States unfortunately is on a never ending slide in standard of living. A more likely scenario is that the United States will just become another third world nation with relatively few in a wealthy upper class and the vast majority will be in a relatively poor lower class as far as income is concerned.

Unless made in the United States has a rebirth and there are things which the world needs from the United States, besides food, energy, and military protection, the United States will continue its almost inevitable economic slide downwards on into the foreseeable future.

Much more could be written about automation such as bot content creators for almost everything we see and read, bot actors, bot musicians, bot teachers, bot nannies, bot sexual partners, drone deliveries, etc. No human field is safe from robotization or a symbiosis between humans and machines. How fast this trend will continue is debatable but this kind of change is inevitable to the detriment of future generations of average not exceptional humans. If you are part of the technological revolution then you will do just fine. If not, your life may seem rather meaningless without a job that you can derive satisfaction and purpose from.

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WHY THE GUARANTEED NATIONAL INCOME WILL WORK IN THE SHORT DURATION BUT NOT IN THE LONG DURATION!!!

The guaranteed national income is just a short duration welfare payment which will increase the national debt in the short duration but all the benefits of the initial stimulus will in the long duration lead to the same problems without a cure.

Yes, initially spending will increase in the nation and businesses both small and large will make greater profits and there will be more investment and expansion in the economy with more jobs and perhaps a slight increase in salaries.

In the long duration prices will increase and cause more inflation reducing the purchasing power of the extra income. In the long duration the purchasing power of the national income will become less and less and investment and jobs will decrease again to levels even lower than those at the outset. Even salaries may not increase but perhaps even decrease when businesses slow down again.

It would be much smarter to make small welfare payments to everyone on a yearly basis and gradually increase the welfare payments to keep pace with inflation so that the purchasing power of the dollar would remain constant and the stimulus to the economy would be constant year after year. Yes, the national debt will continue to increase and the economy will essentially be in a no growth mode again.

In the mean time big business will profit buying up more small businesses and putting them out of business and impacting the employment rate by making it higher.

The guaranteed national income just means that more humans will be on welfare often being non contributing members of society and parasites on the economy. There will be many more humans in poverty and the difference between the rich and poor will just be bigger with a continuing decreasing middle class.

Big business and robotization will put many humans out of work in the near future so you could argue that at least all the unemployed and destitute will be able to survive on a guaranteed national income adjusted to inflation on a yearly basis. Ultimately this may indeed be a compassionate solution in the modern age of little work for the unskilled and non usefully educated population. Since the welfare overhead is 70% for administrative fees for the current system, that money could be used instead to go directly to welfare recipients without the bureaucratic overhead.

My solution to the welfare problem is very different and has some strings attached so that the incentive to work is not totally eliminated. You can read my book CHANGES IN WELFARE LAWS to get an alternate viewpoint.

If you liked this evergreen truth blog then read more of them, about 4300 so far, or read one or more of my evergreen truth books, especially EVERGREEN TRUTH, rays of truth in a human world filled with myths and deceptions.

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UPDATED NEW QUOTE BY ULDIS SPROGIS 1040!!!

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If you liked this evergreen truth blog then read more of them, about 4100 so far, or read one or more of my evergreen truth books, especially EVERGREEN TRUTH, rays of truth in a human world filled with myths and deceptions.

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UPDATED NEW QUOTE BY ULDIS SPROGIS 928!!!

fotorcreated

If you liked this evergreen truth blog then read more of them, about 3900 so far, or read one or more of my evergreen truth books, especially EVERGREEN TRUTH, rays of truth in a human world filled with myths and deceptions.

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UPDATED NEW QUOTE BY ULDIS SPROGIS 319!!!

FotorCreated

If you liked this evergreen truth blog then read more of them, about 3200 so far, or read one or more of my evergreen truth books, especially EVERGREEN TRUTH, rays of truth in a human world filled with myths and deceptions.

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THE TRUTH ABOUT DEBT+

Debt_Ceiling

When an individual or small business has too much debt they either enter very hard financial times or declare bankruptcy and start all over from scratch. When a large business has too much debt they frequently undergo a Chapter 11 reorganization bankruptcy proceeding which forgives some debt and refinances other debt and permits them to function as an ongoing business enterprise though sometimes reduced in size.

When the government has too much debt this sometimes leads to hyperinflation and a collapse of the currency and usually a new currency is instituted with new and usually stronger financial rules are instituted which limit the supply of money pumped into the economy by said government.

Money is still not fleeing the United States government but it may once the debt to GDP ratio is to too high which can result in some dire consequences.

Today with money being an international commodity largely backed by the US dollar and with international competition there is no incentive to balance the budget and be a sound currency since this usually means a higher currency value and becoming less competitive in international trade. 

The international money supply and rules encourage governments to go into ever and ever larger debt which inflates the global currency and causes inflation since governments inflate their currencies vainly hoping that their debt obligations will decrease with time.

Monetary discipline is necessary for a long duration healthy world economy and current profligacy of most governments ensures that a day of reckoning will come with a global depression. Will there be a Chapter 11 reorganization for all the governments in the world and who will be in charge of this reorganization?

What the world desperately needs is a sound inflation free worldwide currency which maintains its value over time. Will the nations of the world agree to this? I strongly doubt it because there is not political unity with similar financial rules which is what is necessary for a worldwide currency to be instituted.

Austerity measures are frequently necessary to repay debt and unfortunately this is not a very popular political alternative for most democracies. A financial crisis is what is needed to stop profligate spending and there may be one just around the corner because free or counterfeit money has its limits in the real world.

 

If you liked this evergreen truth blog then read more of them, about 1300 so far, or read one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

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THE TRUTH ABOUT THE ECONOMY+

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Very rich humans tend to be hoarders of money and even though they invest most of it it is not usually heavily invested in tangible assets which help to create jobs for poor humans or the middle class. The problem with the economy is that when hoarding continues, inflation continues, and great personal debt takes also takes more money out of the economy there is not enough money in circulation since the average working human has less to spend than before.

The result is deflation where prices fall and jobs are lost and there is even less money being spent. Deflation originates in inflation of the money supply which makes prices higher and humans less able to afford products produced. In effect they have less money to spend each year and this causes deflationary pressures. This causes a fall in prices from oversupply of products and less profit.

To avoid this kind of deflationary pressure the government artificially pumps counterfeit money into the economy trying to stem this natural economic deflationary consequence thus going into ever greater debt. Because the economy is not given time to correct itself with deflation an unnatural economic bubble is created of false value and not only is there inflation or decrease in the value of currency on the world market which causes higher prices in foreign goods but financial insolvency or bankruptcy threatens at some point in the future.

Trying to avoid a great depression by pumping money into circulation this just makes the possibility of an even greater depression in the near future. In the meantime the concentration of money power in the hands of fewer and fewer humans continues and it becomes even more pronounced during any major depression.

The system is rigged in favor of big money and big banks which keeps getting bigger all the time and there is in the end less money for the middle class whose jobs are also being decimated by technology or computer software. The only ones who benefit in the end are government workers, the highly skilled, the very rich, and those on welfare with guaranteed annual income called entitlements.

Pretty soon there will be a wealthy elite at the top, a highly skilled small working elite middle class, and the rest will be on welfare. I anticipate all this radical change and have devised a just system to replace the old corrupt one. Of course you will have to read all my evergreen truth blogs and books to get all the vital details.

Inflation encourages short term investment and wild speculation in the stock market and does not really encourage good long term investment and speculation. Liquidity crises and counterfeit money pumping is symptomatic of the theoretical “growth” mentality which is not healthy for an economy in the long duration. Short term profits are encouraged and ultimately a sick economy and looming bankruptcy is the result.

If you liked this evergreen truth blog then read more of them, about 1200 so far, or read one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

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