And Ford’s technological innovations, culminating in the construction of the massive River Rouge plant—one that employed more than 90,000 workers at its peak—brought visitors from around the world to marvel at the might and ingenuity of American industry.90,000 then,.. 3,000 today? Again, who's going to buy those Teslas?
More on the rise of the robot from Balkinization: The River of Purchasing Power Dries Up at Detroit
This rise of [robotized manufacturing] violates the deal that the capitalists made with American consumers after the great Depression, which is that they would provide people with well-paying jobs and the workers in turn would buy the commodities the factories produced, in a cycle of consumerism. If the goods can be produced without many workers, and if the workers then end up suffering long-term unemployment (as Detroit does), then who will buy the consumer goods? Capitalism can survive one Detroit, but what if we are heading toward having quite a few of them?and
Imagine that the mass market consists of a “river” of consumer purchasing power. Along the banks of this river are located industries of all types. When an industry sells a product or service to consumers in the market, it pumps purchasing power from the river. An industry also pumps purchasing power back into the river in two primary ways: first it pays salaries and wages to workers, and second as technology advances, the prices that the industry charges fall and this results in more money in consumers’ pockets. . .Add to this an elite corporate-political class taking and holding as much from the river as they can and there just isn't much left over for the rest of us.
...
At some point, the industries on the banks of our river will become too capital intensive (the machines they employ will begin to run themselves). Once this happens, they will collectively begin to pump more purchasing power from the river than they return to it. The river will begin to run dry. . . .
No comments:
Post a Comment