ROBOTS AND A DISATROUS ECONOMIC DYNAMIC
In a recent report, the World Economic Forum considered that the use of robots in economic activity will cause far more job losses in the near future than there will be new ones created. Every economic sector will be affected. The CLD tries to illustrate the dynamic effects of replacing human workers with robots. This dynamic indicates that if there is no replacement of the income forgone by the laid off workers, then the economy will soon grind to a halt. To avoid disaster, there must be enough money in circulation, not parked in off-shore investments, to permit the purchase of all the goods and services produced by robots. The challenge for the government is to make sure that this is case.