A few months ago I proposed a system for maintaining aggregate demand in the face of robot labor that buys nothing. Here is a mathematical formulation of the revised system in operation.
Before we begin an assumption must be examined. Legally, morally, and economically I am treating aggregate demand as a commons which requires redress for damages. This is not a universally accepted assumption. It is however arguable and I am arguing it.
The scheme involves a GSE tasked with maintaining and growing the commons of aggregate demand by the imposition and collection of licensing fees (a per hour per automated system assessment) and protective tariffs against unlicensed automated production. Such a GSE would have to be fairly nimble in setting fees and protective tariffs and would require legal authority in range of a constitutional amendment.
Here is the operating system of that GSE as an equation. The only esoteric bit is the reference to a paper by John von Neumann on Self-replicating Automata which allows a mathematical treatment of robots building robots which informs the governing calculations.
The GSE sets fees to make projected robot productivity cover the demand gap its own labor displacement creates, indexed to the growth rate of the broader economy.
The operations equation is:
z=x-y+p=x+c
p=c+(y as % of x)
c=+/-3% as a goal
x= baseline aggregate demand in dollars
r= aggregate receipts in dollars
f= fees and tariffs (set by GSE)
y= r-f
p= projected increase in robot labor (von Neumann) as a planned and estimated productivity adjustment in dollars
It is simply a process of estimating p (by license) to perform c by design.
This automated machine economy is only a component of a larger mixed economy of growth % = g and the whole economy as C=g+c.
This scheme maintains and grows aggregate demand by the setting of licensing fees and protective tariffs. It is necessary. It is elegant. It demands your attention.
Do Well and Be Well.
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