this post was submitted on 30 Aug 2025
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The problem is that wages are only like 30% of the cost of a product. The rest is materials and company profit.
If wages drop to zero because AI does it, then yes, the cost of products is also gonna drop, but only by 30%, while your wages drop by 100%. You see the issue: decreasing purchasing power. Maths.
That's assuming that new jobs aren't created.