The idea is that $500 is not a fixed cost. First technology came for labor (ex. farming that used to take man-years of labour now takes hours and will soon require effectively 0 man -units), now its even coming for capital as well (a small lump of clever sand can perform what millions of dollars of capital equipment used to do). The only real fixed cost in the long run is going to be the natural resources required to produce things, which are here already. All that remains to us is to decided how to distribute these amongst ourselves.

Most of our political effort right now seems to be spent maintaining an ugly clot of laws and regulations attempting to artificially maintain that hypothetical $500 "cost" and not answering that deeper question.