12 September 2024

The Tyranny of Average Cost - part the twenty fourth

Today's NYT has a long piece on the dangers of over-automation. Rather than repeat most of it, just this
Opposition from unions is just one obstacle to automation. The installation of new machinery and software can cost many millions and even billions of dollars — investments that can take years to pay off. And some ports may not have an incentive to invest in new technology when shipping companies and their customers can't easily move to more efficient ports.
Sound familiar? Use the automation a little or use it a lot, the cost is nearly the same, because it's all sunk and can't be avoided. What happens to capital when there's no more labor to replace?

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