Comment Re:One thing's for sure... (Score 1) 870
In the longer term you're absolutely right. And in the longer term I don't think automation is an overall bad thing. I suspect that those of us in the industrialized world will be in for a rude awakening when we realize that it's the developing countries that will reap most of the benefits, but that's a digression.
What I meant with my comment was that the only people that benefit specifically from lowering wages* to stave off automation are the employers. It's a short-term event - buying people a few years or so - and effectively won't be reflected in the long-term price level changes. And the effect on the wage level spreads to areas that are not otherwise immediately affected by automation. The employers are effectively reaping the benefit of automation a bit early; a margin profit that we're unlikely to see.
* Wages can be lowered in other ways than reducing the pay. Adding to the workload, no compensation for inflation, more responsibility, night or shift work, or split shifts; they are all effectively the same as lowering the wage.