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Will Automation Lead to Economic Collapse?

Most of the agriculture and industrial jobs are already phased out by machines. Over 70% of jobs and labor is currently to find in the service sector, but also this sector is being phased out and replaced by automation which means decreased purchasing power of the general public. Just take a look at this: http://www.thefiscaltimes.com/Articles/2012/08/20/Will-Robots-Cause-Mass-Unemployment-in-China.aspx#page1

Let's make an example as well. What exactly happens when people get automated by machines? They loose their jobs and need welfare to support themselves until they get a new job, if they ever do. But, where does welfare come from? It comes from tax payers. And do people on welfare pay taxes? They don't. So, what happens when everybody is on welfare due to automation and nobody pays taxes? This example is the reality in Michigan and the government there have been on the brink of shutting down due this exact issue. And we are beginning to see this never-ending spiral go out of control in the rest of the world. The trends are definitely there, but where's the solutions?

Is an economic collapse, in fact, an imminent event and a mathematical certainty, looking at the trends in Michigan and China? And is there a way out of this, looking at it in an economical perspective?


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  • Sep 10 2012: For me personally, Indonesia is developing country and mostly the land use in Indonesia are agriculture, forest and palm estate. Indonesia got economics recession at 1997 because the government was trying to change from agriculture system into industry system. The government did not prepare well for the basic need such as the human resources. Indonesia is wealthy country for their natural resources, unfortunately the human resources really need to be more workout, so it will make them more competent. I mean that for the developing country like Indonesia, the automation will lead to economic collapse if the basic need are not strong enough. Thank you.
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      Sep 10 2012: forced automation decided not by the people but a central board or person. the question poses itself: automation is the problem or central decision making?
      • Sep 10 2012: Based on my country experience, automation lead the economics in to reccession. But I am still considering about the automation, if Indonesia can implement the system because the weather in Indonesia is becoming drought and the farmers feel loss becauase their farmland doesnt give a contribution anymore. So... fifty-fifty...

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