Re:Adam Smith did not mean what he is often made to say (1998)
by jbay808 on Sunday March 13, 2022 @02:16PM
(#30664155)
> What's changed: automation creating value automatically, different from rent-seeking.
In today's inflation-targeting macroeconomic framework, automation causes a decrease in the price of goods and labour, which would have a deflationary impact. To prevent structural deflation, interest rates are reduced, which increases the value of assets such as stocks, bonds, and real estate.
So I think automation can also support rent-seeking, although more indirectly.
In today's inflation-targeting macroeconomic framework, automation causes a decrease in the price of goods and labour, which would have a deflationary impact. To prevent structural deflation, interest rates are reduced, which increases the value of assets such as stocks, bonds, and real estate.
So I think automation can also support rent-seeking, although more indirectly.