Why the Massive Wealth of the 1% Could Ruin the Economy

costs being reduced = the cost of the production of those goods and services (much of that cost also shows up as demand e.g. the masseuses massage chair, or the nuclear hardened wrenches used to assemble submarines.)

If labor costs are entirely removed from the cost of production ( the cost of production is reduced to the raw materials + power + design of the goods to be produced ), then in conventional economic thinking, the aggregate demand for goods and services will also tend to a minimum.

Since almost no goods will be in demand in this new economy, it's unlikely that there will be any great shift towards employing the labor force that used to do basic assembly in the production of designs for new goods.

So. Quiz time.

What will happen to the millions of human beings who are not employable in this new economy?

Will they:

a. quietly dry up into dust and accept being swept into the dustbin of history?

b. form a chaotic seething, resentful mass of violence and petty crime that will make every effort to continue feeding themselves even if they are no longer economically viable entities?

c. form a peaceful agrarian commune on otherwise useless spare real estate and sell quaint handcrafts to the few lucky humans who happen to be born into the ownership of mines, powerplants and other assets employed by the new economy?

e. all of the above and some other solutions not mentioned as well?

Your answer should be provided by how you live through the next twenty years; this exam is final.