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How the Economy Actually Works - Dr. Yeva Nersisyan, Franklin and Marshall - DS Pod 270

The DemystifySci Podcast

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Automation's Impact Challenges Capitalism

The acceleration of automation through technologies like AI raises critical questions about the sustainability of a capitalist economy. As both blue-collar and white-collar jobs are increasingly threatened by automation, the fundamental structure of economy—primarily dependent on wage labor—faces upheaval. In a scenario where robots and AI handle most production, traditional income-generation through employment diminishes. This leads to a paradox where the absence of jobs results in the lack of income, thereby restricting consumer purchasing power. Consequently, the ongoing production may become purposeless if there are no buyers for the goods created. The shift towards automation not only threatens jobs across various sectors but also challenges the core functioning of capitalism as we know it.

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