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Zero profit Thought Model
Profit is a measure of productivity improvement due to technology. Businesses compete by improving on the process of delivering a product.
Automation allows the labor content of products to be reduced. This process reduces the need for labor while at the same time increasing the skill level of the jobs which produce the automation process.
If the automation produces profit, it decreases the cost of labor by definition.
Reducing the cost of labor reduces the money available in the economy to produce demand.
The economy needs demand to create the need for production.
Carried to extreme, automation will reduce the cost of the labor content of products in the economy while simultaneously reducing the money to purchase the products.