Baxter is a new robot that has two major differences than other robots. It is very inexpensive and can work with humans without hurting them. Its total cost is $22,000, lasts for 3 years which comes to a total cost of less than $4 an hour. It does not need vacations, breaks, nor takes the time of a human resources dept. It will be mainly bought instead of hiring new employees and in some cases eliminating them all together. Currently, it is used mostly for assembly line manufacturing. It takes an hour to train and has no wage demands. This will get worse as the new generations get more advanced. It will get cheaper and handle more tasks with each new model year. Unfortunately, Baxter does not purchase any homes, cars, food etc. This means, it can not buy the products they are making?

Believe it or not these new robots will probably hurt Chinese and other extremely low wage countries first. Their wages are starting to approach this $4 per hour without the labor strife that goes along with slave labor wages. In fact, I expect them to eventually develop a water proof model that can even do the back breaking job of rice planting and other agricultural production. We already have a new robot that kills weeds and feeds lettuce plants for farmers.

Currently there are over 2 Billion-yes that is B for Billion- unemployed and just subsistent farmers in Africa, China, India and Indonesia alone. What are we going to do with all these people that we don’t need for production? We can’t just put them in jail or camps.

We have to create the correct macroeconomic policies for this new human, global, high productivity environment. Otherwise our economy will come to a stretching halt because there will not be enough quality consumers. The following are a list of solutions:

1. A shorter work week for all-this would start in other countries first.

2. Government providing basic living requirements of medical, food, shelter and education. This will help businesses by reducing their wage pressures. There will still be an incentive to do some work to provide extra consumption.

3. Provide additional funding (both private and public) for the development of more leisure, cultural, entertainment industries along with more infrastructure, space exploration, environmental and other research spending. This will provide substantially more service jobs and employment through innovation.

4. Reduce or eliminate competition on basic wages and fringe benefits because these are the customers and clients. This is accomplished by having a Quality Customer Minimum Wage enforced by laws, tariffs and unions.

Now you ask how we can afford it. The answer is to remove the money creation process from the private hands of the bankers. They distribute it in their own interests and charge a fee for producing money which costs nothing to produce. They make money scarce which it is not! For a complete explanation see the “Monetary Reform – The Big One” on our site at www.cpe.us.com.