r/business • u/[deleted] • 19d ago
Can someone please explain this?
https://i.redd.it/k61mzhfrhxj71.jpg
[deleted]
2
u/cho--e 19d ago
Look to Ray Kurzweil and other futurists predictions of how things will play out. I haven’t read it in a while, but the end goal in these futuristic predictions is to make money obsolete so people can do what they enjoy, daily.
Also, Amazon has been using the kiva robots in their warehouses for almost ten years. That may be a good source to look into for a more practical look at how robotics have and will impact business.
2
2
u/industry7 18d ago
It doesn't really make sense. Without more context it's hard to say what they're getting wrong exactly, but there seems to be two main possibilities. 1) they might be assuming that Nike would switch from child labor to robots as soon as possible, even if robots were more expensive and they would therefore lose profit. But why would they do that? Also they could already do that today and they don't, so that doesn't make sense. 2) Nike switches to robots after they become cheaper than child labor, but somehow lower manufacturing cost leaf to lower profit, but that also makes no sense. If you have the same sell price with lower cost, your profit goes up. Or if they wanted to, they could lower the sell price by the drop in manufacturing cost, make the same profit per shoe, but potentially sell more shoes and make more total profit. But they would have to do that since they'd already be making more money anyway
3
u/rifleman209 19d ago
Fear mongering. 90% of the US use to be farmers now we’re down to 2%. Unemployment is still 6%. People have jobs, new jobs will be formed. It’s a tail repeated throughout history over and over again. If labor was fully replaced in Nike, prices would come down and more people could afford them. We would have more doctors, tour guides, lawyers and of course homeless. I’m not saying it will cut evenly. I’m saying when you bet it out people will be better off but some will lose, majorly.
The poorest people in the US, by and large (but not all) have access to food and water, shelter, electricity, heat and all of the worlds information.
https://ourworldindata.org/grapher/world-population-in-extreme-poverty-absolute
https://ourworldindata.org/energy-access
1
u/EroticVelour 19d ago
If there are only machines building things, there are no wages to be earned by the masses to buy the products the machines are building. It's a stretch, but it's going for the problem of oversupply and declining wages. If you strictly split society into haves and have nots, the demands of the haves ( who are theoretically far fewer in number) cannot support the operation of mass produced goods. You have a cascading collapse a la the Great Depression, which some economists say was caused by a problem of too few dollars in the pocket of workers when credit dried up and an overproduction of goods as businesses tried to produce their way through the credit crunch by outselling their competitors, driving companies out of business.
1
1
u/AO4710 19d ago
Can you give more detail on this please?
1
u/yourlocaltokai 19d ago
Yes sure, what else do you need to know?
1
u/AO4710 19d ago
Where is this coming from? source?
1
u/yourlocaltokai 19d ago
It's from a business competition
1
u/charlesgrrr 18d ago
It's a poorly worded question, but it is a question. My stab at the answer is the following. It has to do with the uneven development of productive forces. In this scenario, Nike can ensure profitability if it automates faster than it's competitors, even to the point of near full automation. The demand for shoes isn't going away, thus there will still be buyers. In this case profitability, although less on a per shoe or even per customer basis than in the past, comes at the expense of Nike's competitors.
1
u/DiegEgg 19d ago
An economist would have a better shot in explaining this. Personally doesn't make sense since the advancement in machinery would stabilize production costs and since Capitalism is all about supply and demand the prices of the articles are elastic. Think of how much people are going to crazy for the demand of Cristiano Ronaldo new jersey now that he has returned to ManU, they can set a higher price and the cost of the good will remain the same. The third world countries would see a dip in their demand, they would have to migrate to serve a different sector. idk
3
u/RationalRabbi 19d ago
It is poorly written. Some explanations have been given but I have a feeling the one who wrote this also does not understand what they are trying to ask. :-)