The more complicated situation, which we are presently experiencing, is that where a 3rd world country with a massive population is given the technology to essentially overnight (ok, one decade) be able to perform manufacturing for virtually the entire planet, at labor rates that make robots look expensive, not to mention they are capable of far more diverse tasks.
I think society has the ability to adapt and diversify fast enough to keep up with our technical innovation, but I don't see any way that we can adapt fast enough to handle the ultra-rapid industrialization of China, especially considering their seeming willingness to work 70 hour weeks for wages that are miniscule compared to the value of their output.
I just don't see how China can manufacture basically everything for us (there is still more that hasn't been outsourced, but will), we outsource whatever information based services we can to India, and we sit here and cut each others hair and build each other beautiful houses, while they live in shacks and share one bathroom between 20 people in workers dorms.
And what do we send them? Pieces of paper with ink on them. Which they use to buy our government bonds.
If overseas workers don't start charging more for their labor, thereby being able to actually consume some of their output, I don't see how there is a happy end to this story in the medium term.
I think society has the ability to adapt and diversify fast enough to keep up with our technical innovation, but I don't see any way that we can adapt fast enough to handle the ultra-rapid industrialization of China, especially considering their seeming willingness to work 70 hour weeks for wages that are miniscule compared to the value of their output.
I just don't see how China can manufacture basically everything for us (there is still more that hasn't been outsourced, but will), we outsource whatever information based services we can to India, and we sit here and cut each others hair and build each other beautiful houses, while they live in shacks and share one bathroom between 20 people in workers dorms.
And what do we send them? Pieces of paper with ink on them. Which they use to buy our government bonds.
If overseas workers don't start charging more for their labor, thereby being able to actually consume some of their output, I don't see how there is a happy end to this story in the medium term.