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As they grow, large Indian businesses prefer to substitute machines for unskilled labor.
"They are not paid to hire people if demand isn't there and if they can substitute machines for people.
Innovation, and growth in output per person, creates investment opportunities even when shrinking populations reduce GDP growth to near zero.New technology can also make it easier to substitute machines for human workers.
The pessimistic argument is as follows: If machines costing $5 an hour can produce the same amount as workers costing $10 an hour, employers have an incentive to substitute machines for labour up to the point that the costs are equal – that is, when the wages of the workers have fallen to $5 an hour.
Similar(56)
This is not a task for counterinsurgents, but rather for an unapologetically high-tech military that substitutes machines for the bodies of young Americans.
Mr Piketty also argues that the return on capital can be propped up by technology, which could lead to new ways of substituting machines for people.A third category of criticism focuses on whether Mr Piketty overstates the extent to which the future is likely to resemble the past.
If the United States follows General Dunlap's advice and "substitutes machines for the bodies of young Americans," we will become more willing to go to war since our society will become even more divorced from war's visceral cost in human lives.
Challenges to substituting machines for workers in tasks requiring flexibility, judgment, and common sense remain immense".
If the firm has been laying off employees and substituting machines for labor, it would make sense there are fewer employees now than retirees.
How much employment can be destroyed by substituting machines for people is a measure of their success--always focused on producing at the lowest cost.
The result is the consumer populous is not able to get the money to buy the products and services produced as a result of substituting machines for people.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com