“Buy land — they’re not making any more!” is an old investing chestnut, and a commonsense one to boot. Economically, it’s also completely false.
The job-threatening rise of the machines is an economically illiterate meme that refuses to die. We’re actually probably in the early stages of it, a bull-market in luddism, if you will. Bastiat’s Candlemakers Petititon answered this one long ago, but today I’ll run a little thought experiment that owes it
[Excerpt from the January Austrian Investing Monthly Newsletter. Download free at St Onge Research.] Does cheap oil cause recession? Not when Oil Supply is Soaring. For the past year, the price of oil has been plunging, spooking markets going into year-end. Oil is one of Wall Street’s favorite recession indicators. So
What happens when robots and AI start taking all the jobs? Counter-intuitively, it’s the poor who will benefit the most. And it’s the upper-middle class who will complain the loudest. Do robots eat poor people? No. But they will nibble on the upper-middle class. And the reason is simple: the affluent have