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- What is the capitalist answer to automation? 21 answers
Now we've learned the capitalist's answer to automation, what could be a democratic state's answer to it?
- automation means, same or more work can be done in less time
- state is faced with more unemployment
Police departments could hire more police. Hospitals could hire more nurses.
Currently, state already does not have enough money to do that, though the demand is quite high (nurses required by the aging population; more police required to face crimes of some unemployed).
Automation leads to higher wages which leads to more consumption of other things.
Yes, but for those limited number of people who retain their jobs replacing other jobs. So globally it is not clear to where more tax money should come from. On the contrary, more people available will push down the low wage market.
So possibly the state will have to deal with mass unemployment and low wages. Also, seizing industry because very little number of workers will produce everything so prices will decline and as well tax related to consumption. Sales volumes drop as well so also capitalists will pay less into the system.
What's the solution for the most of the population (being neither highly intellectual employees nor entrepreneurs)?
UPD the question is not duplicate because it searches for a state's answer unlike a capitalist's answer.