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In a 100% automated society, what replaces capitalism and/or socialism, since neither can work in such a scenario?

Economics Dec 12, 2020

In a 100% automated society, what replaces capitalism and/or socialism, since neither can work in such a scenario?

Expert Solution

Capitalism cannot apply in a 100% automated society because the automation leads to less and less work to be done by the citizens of the country. And for the socialist and capitalist to be at equilibrium, there has to be jobs and income. Even though in some states, the government gives some basic salary to each citizen every month, government officials still consider this as too expensive. The most given an example is cars and trucks automation.

The situation will lead to the unemployment of many trucks and car drivers. As a result of automation, there will be an increased level of unemployment in society, even if the economy continues to grow. In the early day's government preserved money only for those who were unable to work. The incidence cannot bear the case in the automated society since capitalism is not applicable. Hence more people require government free salaries for their daily basic needs. In a nutshell, free government salaries would replace capitalism.

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