Capital to Labor in Warehouses

[RGacky3]

http://www.huffingtonpost.com/2011/11/09/automated-labor-robots-staffing-warehouses_n_1084280.html?ref=business

This, self checkouts and so on, which massiavely increase worker productivity in retail, I'm predicting the same thing will happen in retail that happened in production, the rate of profit falling, producers will demand higher prices and consumers will demand lower, as productivity goes up you'll see employment in the industry drop and the capital/labor ration to rise, and this would put downward pressure on wages. Ultimately the rate of profit will fall.

The funny thing is, for working people these increaess in productivity is tons of negative effects. If we had a sane and humane economic system these new technologies and rise in productivity would benefit everyone.

[citizen of industry]

Not sure if the rate of profit will fall, because the retail workers don't create value in the product, only help to realize the value in sales. So I'd guess it will increase profit for producers or retailers, since less of their surplus value is used to pay wages to retail workers. It might decrease rate of profit if the retailers decide to charge less since they can afford a bigger discount, hoping to boost sales.

I think it will definitely put downward pressure on wages and aggravate unemployment, and will decrease consumption.

[RGacky3]

Not sure if the rate of profit will fall, because the retail workers don't create value in the product, only help to realize the value in sales.

Your right, but considering the labor intensiveness of retail, I think you might be able to apply the rate of profit tendancy, your right in that generally its only applied to goods and services production.

But I think ultimately their product is distribution, and with a downward push on prices and a demand on capital and resources (the products) cost do to increased productivity of that distribution and the competative nature of the retail market (although its less so now) it might apply to that industry too, its going a bit beyond Marxist theory.

The one thing that might offset it is the reliance of productive Capital ON retail capital, for example Walmart has massiave power over productive capital due to the fact that productive capital is more competatitve whereas Walmart has mini monopolies and buys in massiave bulk and is really a market maker, in that case producers cannot demand higher prices even if Walmarts capital/labor ratio goes up.

The consumption thing is going on no matter what.

[Judicator]

The Luddites were right all along! :laugh:

[Skooma Addict]

http://www.huffingtonpost.com/2011/11/09/automated-labor-robots-staffing-warehouses_n_1084280.html?ref=business

This, self checkouts and so on, which massiavely increase worker productivity in retail, I'm predicting the same thing will happen in retail that happened in production, the rate of profit falling, producers will demand higher prices and consumers will demand lower, as productivity goes up you'll see employment in the industry drop and the capital/labor ration to rise, and this would put downward pressure on wages. Ultimately the rate of profit will fall.

The funny thing is, for working people these increaess in productivity is tons of negative effects. If we had a sane and humane economic system these new technologies and rise in productivity would benefit everyone.

Increased capital can lead to a rise in wages, as it has done many times in the past. New technologies however can make some jobs obsolete, since their work can be done more efficiently with the new technology.

[RGacky3]

Increased capital can lead to a rise in wages, as it has done many times in the past. New technologies however can make some jobs obsolete, since their work can be done more efficiently with the new technology.

But in invariably leads to a higher capital/labor ratio.

Usually the rise in wage is just a matter of needing higher educated people.