As machines displace humans in production, their incomes the same pressures that afflict humans. The share of total income paid in wages - the "labour share" - has been falling for decades. Labour abundance is partly to blame; the owners of factors of production in shorter supply - such as land in Silicon Valley or protected intellectual property - are in a better position to bargain. But machines...See More
Former finance minister of Greece, is Professor of Economics at the University of Athens
Either the robot sales tax should be dropped or it should be generalized into a capital goods sales tax. But imagine the uproar against a tax on all capital goods: Woe betide those who would diminish domestic productivity and competitiveness!
First, I cannot see any logic to singling out robots as job destroyers. There are many kinds of innovation that allow the production of more or better output with less labor input. Why pick on robots? Second, much innovative activity, even of a robotlike variety, involves producing better goods and services rather than simply extracting more output from the same input. Third, and perhaps most fund...See More