Impact of productivity improvement
There is a difference between “owning” and “consuming“. You can own 100 cell phone but you can use only one at a time. Same goes with most things in life.
Owning is proportional to the amount of money you have.
Consuming is proportional to the time you have.
Digital assets are easy to own but more difficult to consume. In the long run demand of will be limited by how much time we have – which anyway is limited.
Economic growth is directly proportional to demand. If demand cannot grow beyond a point, we will come to a stage when economy will not be able to grow.
If the overall demand does not grow and productivity keeps increasing – you will need less and less people to fulfill that demand.
Finite Time -> Stagnant Consumption ->No growth in Demand
Increase in Productivity -> Less People required to product Goods and Services
- Why every leader should care about digitization and disruptive innovation – McKinsey Global Institute
- What will future jobs look like? – Andrew McAfee in TED
- It’s a bird! It’s a plane! It’s your pink slip! – Robert X. Cringely in InfoWorld
- Robot writes LA Times earthquake breaking news article – BBC News