Quote of the Day: Robots should say a prayer to central bankers

Slaves – human or robotic – are a form of capital. After the cost of maintenance, the profits from their work go to their owners.

Wolf does not mention it, but the robots should say a prayer to central bankers. By reducing interest rates, they also reduce the cost of capital.

At zero rate of interest, for example, the real cost of a robot is zero. And if that robot can replace an average, marginally competent employee with a bad attitude, the employer makes a profit of $42,000 (or whatever he would have paid the human)… not counting health insurance and the parking place.

The lower the cost of capital, the more robots take their place in the labor force… and the more labor costs drop.

This is an excerpt from Agora Publishing’s Bill Bonner (published at Bonner & Partners) who takes a swipe at the neo-luddites. This shows just how blind the mainstream have been to the theory of capital to embrace age old discredited fallacies