People are a necessity in functioning economics

Read Time: 
2 min
Posted by 
As the team's Capital Markets Analyst, Jacob conducts market and investment research and assists in the development of business strategy to serve clients more effectively.
November 18, 2022
Source Article

In our functioning society, we need labor and capital to get output, output is what is measured in GDP. The more workers, “labor”, we have the more we can produce, which creates more capital for the next product, and thus more output. 

People are a necessity in functioning economics. We need some form of labor for economic theory to work. So, what happens when we no longer have a growing population, will output follow? 

We have come far enough in the realm of robotics, AI, and other forms of economic “labor” that the people don’t necessarily need to be doing that “labor”, rather those machines could work 24 hours a day and people could observe the machines 24 hours a day. There will still be a need for people, just in a different form.  

The obvious rebuttal to what I just said is, “Well, if there are fewer people, won’t there be fewer consumers”. The answer to that is yes. If we are still a consumption economy, fewer people buying things would be harmful. But if there are fewer people wouldn’t those people have more money to spend, and so would they?

About us
Fjell Capital is a leading wealth management firm designed to deliver results for people who desire to be excellent with their finances. Starting at $125/month and a 0.75% asset management fee you can work with Fjell Capital. No asset minimums. Learn more about Fjell Capital here.
Subscribe to the Weekend Reads
Received, interested in becoming a client?
Thank you! Your submission has been received!
Something went wrong!
Email Us
Top posts
recent posts
Schedule a 15-minute Call
Our clients enjoy unbiased advice and a low monthly fee. Schedule your free consultation today.
Choose a Time
COntact us

How can we serve you?

How can we serve you? We invite you to contact us today so we can help answer any questions you may have about your financial situation.

Left pointing blue arrow.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
©2022 Fjell Capital. All Rights Reserved.

-------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------