Automation Economic Theory, One Solution for the Whole Planet

  Automation Economic Theory

   One Solution for the Whole Planet by Richard James Myrchak

What is Automation Economic Theory?

Automation Economic Theory or AET is the theory of automating as many jobs on the planet as possible, ideally in a 10 year time frame. At the same time a new value would be created in the current monetary and economic system, the heart of AET, and that value is called the Human Value. Just as the value of gold is backed by a precious stone, the Human Value is backed by the Human the economy is meant to serve. After all, without the Human, the economy need not exist. The Human Value creates a debt free yearly value, paid as a salary, called the Human Value Salary, paid in an amount equal to a middle class income to every Human 18 yrs and older on the planet in the county and currency in which they reside in biweekly payments until they die. (For example: $55000 a year could be considered a comfortable middle class income for an individual living in the United States.) #economictheory, #economicsystems, #economicsolutions, #debt, #money, #automation, #aet, #change

Jobs are disappearing, and AET is the solution

Jobs are disappearing at an alarming rate. Companies are automating jobs as the technology to do so has been improving steadily over the last 20 years. With advancements in artificial intelligence, and the ability to send huge amounts of data with 5G networks to run the internet of things and communications between self driving vehicles, robots and machines, expect robotics and automation to expand exponentially in the very near future. 
In the past, advancements in technology meant you could simply retrain and start a new job in a different profession. While this will probably always be the case, the available new jobs created are never enough to replace the jobs eliminated through the automation of work. Large manufacturing plants used to have tens of thousands of employees working in one plant. Then as technology improved and automation started taking place, those same places only needed a few thousand employees, then only hundreds. Give it enough time, the manufacturing plants will only require a few employees to run an entire plant. This scenario is playing itself out in all sectors of the economy at a faster rate every year. Even stores want you to use self checkouts so they don't have to pay someone to do it. Warehouses need less employees every years as more tasks are automated. Every time work is automated, human labor becomes less valuable.  In many countries where labor is cheap, that is even being replaced by automation to save money and time.

Full automation will be the answer

Humans have been making technological advancements since we learned how to rub two sticks together to make fire, and those advancements in technology will never end until artificial intelligence does it better.  Maybe a solution doesn't need to get in the way of technology. Maybe we need to automate the most amount of jobs possible as fast as possible. It will happen eventually anyway, so perhaps we can quicken the process.

Automation Economic Theory or AET a 10 year plan

The solution to our problems will not happen by destroying our current monetary and economic system. It will not be cured by heavy taxation on the wealthy or corporations. It is not accomplished by taking away peoples freedoms, seizing assets or locking people away for their different beliefs.

A plan that works won’t affect the people that benefit the most from our current system, it will actually benefit them as well. The plan is like a merging lane onto a highway. Everything is still going to move forward.

The plan is called Automation Economic Theory or AET. The heart of AET is the creation of a new value. And that new value is created without adding debt. That value is the Human Value. The Human Value is worth a middle class income generated every two weeks.

Like the way value of gold is backed by a precious stone. The Human Value Salary or HVS is backed by the Human beings the economy is meant to serve. After all, without Humans, the economy need not exist. Our current system seems to treat Humans as liabilities, a burden, a labor cost to be eliminated. Yet, its Humans that created the economic system, so should it not serve everyone? The only reason it needs to exist in the first place? Oil has value, gold and silver have value. Humans should be more important than the inanimate objects we place a value on.

Or at the very least, derive a reasonable income from one’s own existence. It will save our civilization, economy, and our planet. The Human Value would be a yearly salary that would be considered a comfortable middle class lifestyle paid to every adult human 18 years of age or older in every country around the world every two weeks until death. This would be fully optimized at the end of a 10 year transitional period. The Humans “job” after the transition would basically be that of a consumer. But there are no spending demands placed on the recipients to receive their Human Value Salary by governments or organizations.

The next vital part of the solution is full automation of labor, or at least as much of the labor that can be automated in the 10 year transition. Human labor is still very much a vital component of production, so it’s impossible to pay people the full Human Value Salary at the beginning of the 10 year transition or people will simply stop working, and global production would stop.

Governments would need to work closely with companies and corporations to help provide affordable financing for a transition to full or almost full automation of their business as quickly as possible.

A decent plan

For business, it means almost completely removing labor costs. For workers, it means transitioning to a Human Value Salary as an income. For people who still want to work, schools could offer re-training courses as automation maintenance technicians, computer and robotic specialists, or any topic of interest. Many may choose to start their own business. It may take a 100 years for technology to become fully advanced enough for every job to be done by a robot or automation, and there may always be a career for a human. Those that continue to work would eventually receive two incomes, their work income and the full Human Value Salary. After all, an incentive to work still needs to exist for jobs that can't be fully automated. 

In the very beginning of the transitional stage everyone on the planet needs to be signed up. Everyone would need a digital wallet or at least a bank account to which funds could be transferred to every two weeks. It would probably be easiest for each country to create their own digital currency worth the same value as their regular currency. Different governments and companies could help assist smaller nations that lack the know how to make these transitions. The concept of using a single currency for everyone on the planet to use would probably cause too many problems for individual countries, becoming too complicated, and could possibly undermine sovereignty of nations.

The amount of money is regenerated every two weeks into the individuals account like a automatic direct deposit in an amount equal to that which would be considered a comfortable middle class income. The algorithms used can be simple, no complicated blockchain or mining of currencies are needed.

The Human Value Salary or HVS

Everyone should receive 10% the Human Value Salary in the first year regardless of employment status, income, or wealth. This should be increased 10% per year until it reaches 100% of the value of the Human Value Salary.

Also, the Human Value Salary should be increased 10% per year for every year, until its at 100% of the value for every individual that are still employed, to act as an incentive for people to continue working at a job that hasn't been or can't be automated.

If it is determined that an individual has become unemployed due to automation of the company they worked for, then they will receive 80% of the Human Value Salary, climbing 10% for two more years until it's at 100% of the value.

There may be instances where an individual makes less on the Human Value Salary than their job even when the Salary has reached 100%. People can find another job with a company that still didn't automate, retrain in a different field of work or start their own business to top up their income if they feel the Human Value Salary is not sufficient. Most people will probably end up with a higher income with the Human Value Salary once at 100%, than their previous job.

The Automation Rush will be on

For companies in the transitional stage, the rush will be on to fully automate their businesses in 10 years. At present, a lot of companies are holding back their plans for full automation, due to bad publicity it would cause by throwing people out of work, but inevitably this would happen anyways over time. Using Automation Economic Theory (AET), advancements in automation technologies can move forward without fear of unemployment rates because everyone will have an income to participate in the economy at least as a consumer without needing a job.

There will be all self checkouts in stores, robots that restock shelves with products, cleaning robots, self driving transport trucks and delivery vans, taxis and cars. On farms expect to see robotic autonomous tractors, combines, grain trucks become the norm. Automated diary farm operations that only require a few individuals.

In fact, most, if not all of these things already exist, if only in the early stages, and with wide spread 5G networks coming online quickly to link up these devices and robots with massive data, along with the internet of things, there isn't any reason why AET can't work immediately. Especially given a 10 year transitional period to improve automation technologies.

Benefit of AET for Governments

The cost savings for governments would be enormous. Automation of government services would remove over 80% or more government jobs that exist today. Implementing AET would also eliminate the need for government to provide unemployment payments, disability payments, welfare and pensions. If income taxation levels were set at the maximum of 35% or even slightly lower, then Governments would have plenty of funding for badly needed infrastructure renewal, healthcare, education and finally paying back their debts. Provided the tax dollars are not squandered, it would actually be possible for countries around the world to become debt free, or at least in a less precarious position financially than they were before.

Benefits of AET for Businesses

Businesses would flourish using AET. With good stable incomes guaranteed for every individual on the planet and plenty of free time at their disposal, the economy could be more focused on selling experiences, rather than just products. Leisure activities, going to the movies, eating at restaurants, spectator sports, and being active in sports, water parks, camping, amusement parks, and businesses that cater to hobbies are just some ideas that come to mind. Tourism and vacationing would be popular. With everyone, including business owners, collecting the Human Value Salary, the smallest of businesses with limited success could still be viable for people who always wanted their own business. With automation in full swing, businesses would have the best of both worlds. Hardly any or no staff to pay a salary to, and customers with lots of free time and a good salary with a decent disposable income. And even when economic instability does occur in the economy, recovery time will be quicker with everyone still collecting a salary. 

 Benefits of AET for People

People will have a constant stable income unaffected by changes in technology. Even though companies, corporations and entire sectors of the economy may still experience failures, the individual's Human Value Salary will remain unaffected. This will mean that poor corporate decisions will really only affect the corporation itself because the corporation would have next to no employees on the payroll.

AET means economic security, stability, and peace of mind for the overwhelming majority of the worlds population that wants nothing more, and reserves risk, volatility and unpredictable economic outcomes to the business world and people in it that believe in risk reward.

Individuals and families will be living less stressful lives, no longer afraid for their jobs or working multiple jobs to survive. People will be able to spend time with their friends and families because they would no longer be spending 8 hours or more a day at a job. Free time with an income means people could enroll in higher education for a purpose or simply for the love of learning. Take music lessons, learn a trade, take art lessons, cooking classes, or sit at home and watch movies or play video games all day. Having free time to do the things you love to do will no longer be an issue.

A new economy with AET

An economy using AET will become a more service and leisure based economy. With more disposable income available per individual, and plenty of free time, businesses would meet the demand by marketing experiences, and leisure activities instead of just selling people more "stuff". While shopping would continue to be a vital part of the economy using AET, people will inevitably want to spend their free time doing something more than just shopping all day, even though they wouldn't need to rush anymore while doing it. Amusement parks, resorts, movie theaters, golf courses, gyms, restaurants, clubs, sports etc. would all expand to meet the new demand. New types of businesses to cater to people with free time will be developed. Cities and towns could expand their parks, and recreational activities to offer their population. Governments could further encourage healthy active lifestyles so people don't become inactive with too much free time available.

Banks and credit would continue because whether people are working for a wage or salary as they do now or collecting the Human Value Salary using AET in the future, people will still need mortgages, automobiles, furniture, appliances, and everything else that may require credit. Except with AET everyone is collecting a salary that won't disappear suddenly, which is good for people and banks. There will always be people that over borrow and default on their debts, but AET lessens the chances of loan defaults with steady incomes for everyone.

Concerns about AET

There are concerning issues with the implementation of AET. During, and especially after the 10 year transitional stage. The entire worlds population would be collecting what should be considered a middle class income. There would be billions of people more that would suddenly have the means for a comfortable lifestyle and a mass consumption ability they never had before. This may double or triple the size of the global economy, lifting everyone on the planet out of poverty and into prosperity. While this will be great for every individual and the economies around the world, it will definitely place an enormous strain on the environment and the planets resources. Manufacturing processes will need to be cleaned up, recycling capabilities greatly enhanced. Old products will need to be broken down and remade into new items, with very little new inputs of raw materials required in the process. The world will really need to focus on an economy based on experiences and leisure activities rather than the accumulation of "stuff" or we will continue to drown ourselves in piles of waste, and destroying the Earth in the process.

The world will still need manufactured goods, and it it is no secret that there is a planned lifecycle and obsolescence for pretty much every product made today. Vehicles designed to rust and fall apart after x amount of years so you purchase a new one. Appliances that seem to only last 5-6 years before something breaks etc. Companies and corporations couldn't make a profit if everything they made lasted forever, and there is no incentive for them to do so. Even if they wanted to for moral reasons, their business would probably fail. But that can be changed too.

A Rental Model Suggestion

What would happen if you were only renting your vehicle on a monthly basis? Would the auto manufacturer still want to make a product that falls apart, or make a product that lasts a really long time? Companies would want you to rent that vehicle for as long as possible without anything falling apart otherwise, they would be responsible for it, and its repair cost.

Companies would then realize the benefit of making vehicles lasting as long as possible. Renting out the same car for 20-30 years that doesn't seem to fall apart or rust away, will be more profitable than building cheaply made vehicles that seem to fall apart soon after they leave the showroom. This could be applied to most larger items such as appliances as well. The renting method is just a suggestion, governments could force companies to make products last longer but then the cost to purchase these items would become much more expensive, because they would sell much much less. Perhaps a mix of renting and purchasing with an emphasis on product longevity to save the planet is the answer.

Key Points of the new world with AET

AET creates a world without poverty. Every Human derives a Human Value Salary for their existence, making the Human the main value of the economy. Without the Human, the economy need not exist.

Crime rates will be drastically reduced. Most crimes are committed because of poverty. With everyone collecting a Human Value Salary most crimes will disappear.

People will be less stressed. AET creates a world with a middle income for everyone, and free time to enjoy their lives in a leisure based economy.

Human Value Salary is a new value created without debt.

AET creates a stable economy without major recessions or depressions. Regardless of the mistakes or miscalculations of the business world or markets, people will always continue to collect their Human Value Salary.

AET will remove the commute to work and back and all the pollution associated with it.

With all the extra tax dollars and next to no government employees, no pensions or government assistance to payout because of AET, governments should have plenty of money to fix and build infrastructure after decades of neglect, and pay back debt.

There is less chance of wars breaking out with AET. Much like crime rates, desperation and poverty can be the root causes of war. Despite a countries finances, debt, or purchasing power, every citizen will be collecting a Human Value Salary equivalent of a middle class salary in that country. With a reasonable 35% income tax rate, governments should be able to turn around almost any backward nation into at least a reasonable place to live. In fact the poorest of nations would see the most dramatic change in their country, thanks to their own citizens collecting a Human Value Salary and paying taxes on that salary, essentially pulling the whole nation out of debt and poverty.

It needs to be emphasized that it is NOT governments of nations that are paying the Human Value Salary. The Human Value will be a fixed asset creating money without debt in the global monetary and economic system. A value given to every Human being on Earth 18 years of age and older to receive a Human Value Salary equal to that of a middle class salary in the country they reside in until their death paid on a biweekly basis. Governments of nations are only responsible to administer biweekly payments to their citizens and collect no more than a 35% tax on that income. With so much less expenses, governments in a AET world shouldn't need more than the income tax, and possibly a sales tax on purchased goods to operate successfully.

People and Businesses will still need loans. Banks will still need to provide mortgages and business loans the same as they do now, but with AET, banks would take on less risks.

With everyone collecting a guaranteed Human Value Salary, banks wouldn't have to worry about defaults on loan payments due to unemployment, but the risk of too much personal, government and business debt will still exist.

Healthcare in a AET world should be within reach of every human on the planet either by having affordable insurance premiums in private healthcare systems or by public healthcare systems funded by taxpayers. ( At least after the 10 year plan has successfully run its term.)

The Health of the Planet

AET will lay the groundwork for an economic model that is both achievable and healthier for the planet. The removal of the daily commute to work lowers our carbon footprint in itself. An economy based on leisure activities, and experiences will be better for the planet than an economy based on purchasing more "stuff".

Creation of more parks and green spaces and public transportation for people to enjoy and use. Many people may choose to get rid of their cars if they don't need to commute to work anymore.

AET encourages an economic system and lifestyles that doesn't do unnecessary harm to the planet.

Automation Economic Theory and the Human Value Salary will get the entire planet out of poverty and is a solution to the effects of automation and artificial intelligence in the workplace. It is not the solution to every problem on the planet. With more money and free time using AET perhaps people and governments can spend more time and energy on ways to have technology help clean up the planet, build carbon free energy generation, plant more trees, encourage green solutions, and to fight inequalities and injustices at home and around the world.

With AET the Human is the main value of the economy. Without the Human, the economy need not exist. But remember that without the planet, Humans will not exist. So the new world built with AET needs to keep that in mind, or it won't matter which economic theory we use in the future. We can create money out of thin air but we can't create a new Earth to live on, so we really need to respect this planet.

Governing Laws of AET

Law 1 : The Human Value Salary is a yearly generated salary paid to every human being on the planet, over the age of 18, every two weeks in the amount considered a middle class income in the country they reside in, until death.

Example: In the United States, a $55000 yearly salary would be considered a middle class income for an individual.

Law 2 : The Human Value Salary is NOT paid to you by governments of nations.

Governments simply administer the payments for each of their citizens every two weeks, deposited in a digital wallet or deposited in a bank account of the individual minus an income tax. Governments will administer this process in order to collect income tax of a rate no larger than 35%.

Law 3 : Just the same as the value of gold is backed by a precious stone, The Human Value Salary is backed by the Human the economy is meant to serve. Without the Human the economy need not exist.

Law 4 : The Human Value Salary creates an income without creating debt.

Like interest on money, the Human Value Salary is "interest" on the humans existence, always worth a middle class income in the country they reside in from the age of 18 until the human dies.

Law 5 : The Human Value Salary will be a value added into the current monetary, economic system.

The monetary and economic systems have gone through major changes many times before, and this will be another necessary change. The Human Value Salary will counter some of the excessive debt created in our debt based economy. If money can be created out of thin air by using a instrument called debt, then debt free money can be created by an instrument called the Human Value, and paid out through the Human Value Salary. Remember, rules can be made and changed to suit the concerning parties involved. And those rules for an economic and monetary system need to work for everyone on the planet. These are not rules of nature, they have been changed in the past, and they need to change again.

Law 6 : The world will need to quickly transition to a carbon free economy with AET.

With billions of extra people lifted out of poverty, the added environmental stresses placed on the planet due to all the extra purchasing power will need to be addressed in the 10 year transitional stage to avoid catastrophe. This needs to be done anyways, but more so when lifting the whole planet's population out of poverty and into a middle class lifestyle.

Law 7 : The world will need to transition into a leisure based economy.

Similar reasons to Law 6, we need to produce less "stuff" and start selling more experiences and activities. People will have a lot of free time and a discretionary income to spend.

AET steps to successful implementation

Step 1 : Help get the word out about AET, share articles, and create articles online and through social media. Create Pages and Groups. Tell your friends and family. Get people to sign up and become card carrying members. A large growing organization for positive change will be hard for politicians to ignore. Start grassroots campaigns at the local level to get the word out. Have local meeting and grow the membership, have public discussions about Automation Economic Theory and the Human Value Salary and how it will change the world for the better. Bring forward your ideas to meetings on how society can engage around the ideals of AET and the Human Value Salary (HVS).

Step 2 : Governments around the world need to be aware of AET and its benefits.

Step 3 : People need to demand to governments that change is needed and that Automation Economic Theory and the Human Value Salary is the viable solution.

Step 4 : Petitions need to be created and demonstrations need to happen until the United Nations recognizes AET and HVS, and it is adopted by all nations inside and outside the United Nations.

Step 5 : All nations need to adopt there own digital version of their own currency.

Step 6 : All Humans 18 years of age or older need to be signed up and either have a bank account that can be deposited into or an electronic wallet or both.

Step 7 : The 10 year Plan to automate as much of the workforce possible needs to begin. Companies should be able to access grants and loans from governments and banks to make the transition as fast as possible.

Step 8 : Everyone will start to receive 10% of the HVS regardless of employment status, income or wealth. This will serve as a way to make sure the system works correctly plus it will start to boost incomes to everyone around the world. In lots of cases, it may be the first and only income a person receives.

Step 9 : Companies will need to work with governments and communicate with them when they have started automating their business, and are about to layoff their workforce either all at once or slowly over time. These new unemployed individuals would automatically begin collecting 80% of the Human Value Salary, increasing 10% a year for two more years until it is at 100%.

Step 10 : Everyone will start to receive 20% of the HVS regardless of employment status, income or wealth that isn't already receiving the HVS due to being unemployed through automation of work. This will need to increase 10% a year until it is at 100% of the HVS. This needs to be done as an incentive to keep people working whose jobs have not or can not or will not be automated by technology. Some people may want to work and will seek it out, this is a persons choice. These people will receive money from their job and eventually the full HVS.

Step 11 : Leisure based economy needs to begin. Businesses should start being created and offering services to reflect a new society with people with an abundance of free time and money to spend. More experiences and activities, and a lot less "stuff" to sell that simply fills landfills.

Step 12 : Governments in all nations need to be focusing on building new cities or redesigning and repurposing old cities with plenty of green spaces, public gardens, parks and leisure recreational centers, clean operating public transportation, walking trails and bike lanes. The general public will need things to do, and healthy choices should always be freely offered.

Step 13 : Governments and private industry should be opening up new schools and learning centers for people to learn how to start their own businesses, learn new skills, learn a new vocation that has not been automated if people still want a job. People with free time may want to immerse themselves in a university education for their own betterment, or become doctors, scientists, and engineers. All these options need to be offered and made affordable. People need plenty of options to stimulate their minds and bodies. We as Humans were conditioned to believe that we must all be working to have a sense of worth and purpose. This is nonsense, but it will take a long time for people to realize otherwise. So, a lot of choices needs to be available for all the people with a lot of time on their hands.

Step 14 : After the 10th year everyone will be collecting the Human Value Salary regardless of their income, wealth, or employment status.

Step 15 : All government programs such as pensions, welfare, and unemployment assistance programs can stop. Everyone will be collecting the HVS. Governments should be automating all departments that haven't already be automated during the 10 year plan (that are possible to automate), and remove government workers from their payrolls that are no longer required.

Step 16 : Step up efforts to clean up the environment, all industries, and have a carbon free economy, have a fully electrified public and private transportation system powered by clean energy.

Step 17 : Hopefully everything works out and we didn't destroy ourselves, and or the planet. Embrace technology and use it to improve the world we live in together with all people of this planet.

Become part of the movement.

Become a member in the movement. Large organizations for a good cause will be hard for governments and politicians to ignore.  A one time payment of $19.99 makes you a lifetime member for the cause. You will get a downloadable wallet sized membership card for you to sign and laminate, and a downloadable 8-1/2'' x 11'' Membership certificate to sign, frame and hang on your wall. You will also receive the official downloadable copy for you to print out of the 33 page Automation Economic Theory booklet a manifesto by Richard James Myrchak.  Press or Click the AET1 icon below to make your purchase.