Quote:
Originally Posted by iggy_oi
I’m asking how the surplus created from job losses, assuming you’re referring to a surplus in capital, was previously split between wages, profits and lower prices. The surplus as I see it would result from the savings in wages alone. Those savings would then contribute to both increased profits and creating greater capacity for maintaining lower prices but I don’t see how you’re coming to the conclusion that it’s the other way around where either of those things are contributing to the surplus. They will both benefit from this surplus, but they don’t contribute to it.
|
I think I agree with you. The surplus is the savings in wages. What you do with that Increased Profits, increased wages, Increased Taxation, or lower prices is the societal decision that needs to be made.
If 100% of that surplus was used to cover job losses it would fund itself though provide no incentive for automation. Essentially a tax on automation giving money to the poor is not inflationary because the total money in the system remains constant.