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Comment by James_K

2 years ago

> I can think of a few times that something previously expensive is suddenly made very cheap, and there's always a class of people that really don't do that well.

Obviously this will be somewhat true in the short term, but there is no reason these people can't just retrain and start doing something different.

> Unless you're talking about switching to an autocratic system where the elites can turn down cheap things in exchange for the long term benefits of local production.

It wouldn't have to be autocratic. For instance, our system is not an autocracy, yet we chose to move manufacturing to China. Not every system that makes decisions is autocratic. People could just as easily vote to do something democratically if they know it is in their own good.

But consider what is really happening in these places. They have an economic system which makes decisions about the allocation of resources. In response to the addition of new resources, these systems decided to decrease production of local resources below existing levels, and hence make people poorer as a result. The issue here is purely one of distribution and management. Suppose in the trivial case of food being dumped in Africa, said food was instead sold below market rates, and the income from this was used to subsidise farms to bring their outputs to the same price as the aid. Local manufacture remains worthwhile, prices decrease, and supply increases. Everyone benefits.

I don't think it should be crazy to envision an economic system stable enough to allow people to benefit when you give them things for free. Especially since in the future, everything will be produced for free by machines. At that point, I should like everyone to live in luxury, rather than for everyone to be poor.