Photo of an apparel factory with almost no humans — everything is automated with cutting edge technology. This isn’t in the US or China, it’s Bangladesh.
“Envoy Textiles Ltd (ETL) is one such denim fabrics manufacturer which is using robotic machinery to raise output and improve the quality of products.”
The non-human means of production (what economists term “capital”) will exponentially destroy jobs and in the process create a increasingly large labor pool who cannot participate productively in the economy and, as a result, devalue the worth of labor for masses of people.
Understanding that the basic principle of an economy is that the purpose of production is consumption, it is impossible to consume what has not been produced. Consequently — all things being equal — the only way to consume is to produce.
If you want to consume, then, you must either produce for your own consumption, or to exchange what you produce for what others produce that you wish to consume.
As capital advances, labor’s contribution becomes smaller. Obviously, then, as capital takes over more and more of the share of production, it becomes essential that people own capital as well as labor.
The solution that binary economist Louis Kelso developed was for people to purchase capital that pays for itself out of its own future profits. Instead of cutting consumption to save and then purchase capital, you first purchase capital, increase production, and then save.
The promise to pay tomorrow for what you purchase today can be embodied in a contract, and the contract can be used as money to purchase the capital. The only requirement is that all the parties to the contract are reasonably assured that everyone keeps all the promises that were made. In this way capital can pay for itself without the new owner first having to save, as a matter of fact, is virtually impossible for the vast majority of people.
Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice.
Support the Capital Homestead Act (aka Economic Democracy Act) at http://www.cesj.org/learn/capital-homesteading/, http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-a-plan-for-getting-ownership-income-and-power-to-every-citizen/, http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-summary/ and http://www.cesj.org/learn/capital-homesteading/ch-vehicles/.