A Note on the “Em” Revolution
For the past few years, Robin Hanson has been speculating on the effects of an ems, human emulating robots. One obvious possibility is that robots (who can work cheaply) will drive wages down to near zero. That might not be a problem if prices are also near zero. On the other hand, not all the components of prices come from wages; some come from land or capital. In other words, if you own a home or other large good, you had better hang on to it. Someday you might have to make ends meet renting it to the ems.
Another way to look at this is that people who are prepared need not worry.