http://globaleconomicanalysis.blogspot.com/2012/09/can-fed-f...Today, as single farmer can produce as much goods a 100 farmers a half-century or less ago. That freed up labor for manufacturing and the service economy.However, droids are now replacing humans in both manufacturing and services.When does it stop? Every time I go into a grocery store, I see more self-service checkout lanes and fewer manned ones. When RFID checkout comes into vogue, and it will quickly, an entire grocery basket will be scanned at once, and even fewer checkout clerks will be needed.Because of ever-increasing productivity, it's easy to show that deflation is the natural state of affairs. But what does that mean looking ahead? Will there be any jobs left? If so where? And what happens to the Fed's effort to prevent falling prices?The Fed wants to increase jobs and wages. It is fighting a battle it cannot possibly win. Forcing down interest rates while hoping to force up labor costs simply increases desire of companies to replace humans with droids.If the Fed "succeeds" in further driving up prices, it will destroy the middle class because the technological rampage is sure to increase job losses for skilled labor, at least for the foreseeable future.Could it be that that eventually those that do not pay income tax become the majority? Could it be that the current level of food stamp receiptants increases even further?I just provide the interesting articles. You decide if they have any validity.<g>
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