Crazy Eddie
Veteran Member
Which results in the same final revenue that you had before, Mister Fail Math.You're still not getting it. If you use the automation to increase productivity you end up with more goods on the market. The price isn't going to stay constant, your price per unit is going to have to drop considerably to sell that many...
Simple arithmetic, it's easy:
I can make 100 handmade widgets and I know I can sell them for $30 each. Total sales: $3,000.
I can make 1000 autocad widgets and I know I can sell them for $15 each, but I'm a retard and I sell them for $3 each anyway (listening to your advice, I guess). Total sales $3,000. *
I have no reason to cut jobs now. I'm making the same money I was making before. Automation means my workers are no longer spending all of their time making widgets and can now focus on things like customer service, sales, cleaning the front desk, taking phone calls, meeting with buyers in the big box stores now that we are making enough widgets to reach more markets.
So quantify exactly what you're predicting. What level of automation would cause the overproduction problem and resulting job losses you're predicting?
* And again, I'm only slashing my prices that by 90% because I'm a retard. If I'm NOT retarded, I can cut my prices in half and still produce a thousand of them, which means total revenue would be about $15,000.
This is false in two ways:The only way you can have a world where minimum wage doesn't cause job loss is where there's no automation options...
1) Minimum wage doesn't cause an increase in automation, it is one of MANY factors that raises the DEMAND for automation
2) "Increase in automation" isn't even the most common EFFECT of increasing the minimum wage, since most minimum wage jobs cannot be easily replaced by automation.
So TO the extent that raising the minimum wage can cause job losses under some circumstances, "increased automation" isn't far from the biggest reason for that.