Friday 29 April 2016

Robots or Humans?

There is a new automation-driven industrial revolution in China. If the cost of using robots over time is cheaper than hiring human labours, firms are definitely willing to use more robots than human labours. This raises some concerns about the unemployment caused by such structural reforms. People may stand as the public interest to suggest that the government should stop or slow down such transformation. I don't agree with such opinion. Such transformation is definitely good for the economy. As such transformation matches the will of the market, it can help to cut the costs of the suppliers and the prices for the demanders. Therefore, such transformation will be driven by the market force inevitably. The only concern is about the widening wealth gap. Therefore, the government should set up a welfare structure before such transformation is completed.

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