Amazon Prime Air

Re:Amazon Prime Air by makomk on Monday December 02, 2013 @02:07AM (#6832237)

Higher productivity through mechanisation also leads to businesses being far more capital-intensive and less reliant on humans, which means a large proportion of the money coming in from those lower prices goes to members of the capital owning class - who, in general, don't spend nearly as much of it - which, in turn, means that spending power amongst the people who do actually spend will decrease faster than prices.

[ Parent | on HN ]

Re:Amazon Prime Air by brc on Monday December 02, 2013 @05:41AM (#6832932)

Well, no, that's not what I am saying at all. The beneficiaries of lower prices are the end customers, not the owners of the business. Most people live on (relatively) fixed incomes - a gradual lowering of prices for things that they buy simultaneously increases their quality of life by leaving a larger share of income for other purchases.

This is easily tested by most people - inflation adjusted, owning a device with the power of an iPhone is absurdly cheap by historical standards.

I would also argue that businesses are becoming less capital intensive in general. Sure, specific types of business require multi-billion investments, but many other businesses are launchable now with essentially 'zero down'. That's a combination of automation allowing previously labor intensive tasks, and of automation lowering the cost of capital goods. You can start a startup now with just a single laptop and some open-source software, the capital requirements are essentially nil. Ironically it is Amazon itself which carries credit for some of this - by automating virtualised computing resources, it has lowered the price of those resources and allowed more people to start businesses.

I'm surprised I have to post that on HN, but it's true.

[ Parent | on HN ]

Re:Amazon Prime Air by aparadja on Monday December 02, 2013 @03:19AM (#6832469)

Higher adoption of mechanisation leads to better availablity and lower prices for the machines, though.

I might be wrong, but think I see a trend where the barriers of entry for many businesses are becoming lower and lower. For example: 3d printers, UAV drones, computers, sewing machines, craft beer equipment. They are all easily obtainable by a private person without outside money.

Also, while some equipment is still too expensive for a layman, a huge amount of manufacturing processes are now offered as a service. Better automation makes it viable to produce small batches of custom products. It is because of this mechanisation trend that I'm now able to send a 3d file to some company in UK and get a few hundred custom injection moulded parts delivered by mail.

[ Parent | on HN ]