This is the lump of labor fallacy. The error you are making is assuming that there is a fixed quantity of work that needs to be performed. When you multiply the productivity of every practitioner of a trade, they can lower their prices. This enables more people to afford those services. There’s a reason people don’t own just 2 or 3 sets of clothes anymore.
When you multiply the productivity of every practitioner of a trade, they can lower their prices.
I’m sorry, but that’s some hilarious Ayn Rand thinking. Prices didn’t go down in grocery stores that added self-checkout, they just made more profit. Companies these days are perfectly comfortable keeping the price the same (or raising them) and just cutting their overhead.
Don’t get me wrong, if there are things they could get more profit by selling more, then they likely would. But I think those items are few and far between. Everything else they just make more money with less workers.
This is the lump of labor fallacy. The error you are making is assuming that there is a fixed quantity of work that needs to be performed. When you multiply the productivity of every practitioner of a trade, they can lower their prices. This enables more people to afford those services. There’s a reason people don’t own just 2 or 3 sets of clothes anymore.
I’m sorry, but that’s some hilarious Ayn Rand thinking. Prices didn’t go down in grocery stores that added self-checkout, they just made more profit. Companies these days are perfectly comfortable keeping the price the same (or raising them) and just cutting their overhead.
Don’t get me wrong, if there are things they could get more profit by selling more, then they likely would. But I think those items are few and far between. Everything else they just make more money with less workers.