alt Hacker NewsWhat's crazy is that productivity per employee just keeps increasing year after year, but successive neoliberal governments continue to lower corporate taxes. They should be doing the exact opposite! Taxes should be raised as productivity increases! AI is just one more tool that gradually increases productivity, among others.
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If productivity increases, margins increase. When margins increase any business in a competitive environment will have to lower its prices in response to any other business lowering prices that got those automation gains.
Productivity increases result in lower prices in any competitive market.
> but successive neoliberal governments continue to lower corporate taxes.
By itself it wouldn't be a problem, the problem is at the same time they raise taxes for people doing OK, and salaries are mostly stagnating.
Why should productivity and corporate tax rates be correlated at all, up or down? The link there is not obvious.