economics of automation

automation of industry through the use of robotics and ai 

will decrease the cost of production of products and services 

so much that the price of products and services will be so cheap 

that the poorest people will be able to buy what they need 

if companies that automate a lot kicks too many personnel 

then the government will probably force those companies 

to not kick too many personnel to prevent mass unemployment 

but the companies that automate 

will produce cheaper 

and produce more 

and thereby earn more money 

so the companies will earn so much money from automation 

so that it will be a small cost for those companies to have personnel 

compared to the big money the companies will make from automation 

if companies kick too many personnel because of automation 

and that creates mass unemployment 

then people will have less money 

to buy products and services from companies 

so companies have a self interest in avoiding mass unemployment 

and mass unemployment can create economic chaos 

which could injure companies 

which companies wants to avoid because of self interest 

since companies will earn more money from automation 

then they will pay more taxes even if taxes are lowered 

and that money could be used to give unemployed people welfare 

or citizen salary or individual trust fund to live from 

since automation will decrease the cost of products and services 

then housing will be cheaper to build as long as the land is cheap 

and land is cheaper outside the cities 

and food, energy, infrastructure and transportation 

will become cheap because of automation 

so the government will only need to pay small money 

to unemployed people 

compared to the big money that the government will get from taxes 

that automated companies will pay 

companies that automate 

will produce cheaper 

and produce more 

and thereby earn more money 

so those companies will want to buy more land 

to build factories, warehouses, offices and housing on 

and there is a lot of land outside the cities 

and the government owns a lot of land 

so the government will earn a lot of money 

from selling land to companies that automate 

if companies in usa automates more 

to produce cheaper products and services 

in order to compete with companies in china 

then automation could create more jobs in usa 

and since salaries are likely to go up in china 

because of more developed economy in china 

then companies in china might need to automate more 

to avoid that too much production is outsourced from china 

to countries with lower salaries than china