The Economic Paradox of Full Automation: Collapsing Wages but Rising Living Standards
By
colesantiago
Crackling crust, pillowy middle. The kind of bagel that earns a second cup of coffee.
Summary
The article explores the economic paradox of full automation, arguing that while automation will likely cause wages to collapse below subsistence levels, it will simultaneously make most people vastly better off through sharply rising standards of living, rapid medical progress, and an explosion in available goods and services. The authors examine how technological progress could lead to a post-work society where basic needs are met through abundance rather than wages, challenging conventional economic thinking about labor and value.
Key quotes
· 3 pulledEconomic theory suggests that full automation will cause wages to collapse, potentially below subsistence level: the bare minimum needed to sustain human life.
Yet the full automation of the economy will probably also make most people vastly better off. Plummeting wages will coincide with sharply rising standards of living, rapid medical progress, and an explosion in the variety of goods and services that people can choose from.
It's natural to feel anxious as we approach the inevitable automation of all human labor.
You might also wanna read
Silicon Valley A.I. Insiders Fear Mass Job Automation Will Create a Permanent Underclass
The article discusses growing concern within Silicon Valley's A.I. industry that advanced artificial intelligence will soon automate many jo
nytimes.com·1d ago
AI boosts individual worker speed but economy-wide productivity lags — parallels to pre-Internet era suggest a hidden boom may be underway
The article examines a paradox in the U.S. economy in 2026: economic expansion continues despite slowing job growth, suggesting rising produ
fortune.com·2d ago
Silicon Valley A.I. Leaders Fear Mass Job Automation Will Create a Permanent Underclass
The article discusses growing concern within Silicon Valley's A.I. industry that advanced artificial intelligence will soon automate many jo
nytimes.com·1d ago
Silicon Valley A.I. Leaders Fear Mass Job Automation Will Create a Permanent Underclass
The article discusses growing concern within Silicon Valley's A.I. industry that advanced artificial intelligence will soon automate many jo
nytimes.com·1d ago
Silicon Valley's A.I. Builders Fear Mass Job Automation Will Create a Permanent Underclass
The article discusses growing concern within Silicon Valley's A.I. industry that advanced artificial intelligence will soon automate many jo
nytimes.com·4d ago
Why the tech industry's push for automation misunderstands what people actually want
The article presents an opinionated analysis of what the author calls "software brain" — a worldview that reduces everything to algorithms,
theverge.com·1mo ago