This is an interesting video for several reasons. Obviously, as the title describes, it shows how Tesla Motors is using automation and robotics to build a better car. There are also some interesting implications for the relationship of labor and employment within the U.S. economy. As Mish notes, the reason inequality has been growing wider in recent years is not for a lack of inflation. Far from it. The cost of living has most certainly increased faster than income or wage growth. That’s because the Fed keeps throwing money at bankers and others with first access to capital. What they’ve done with it is none of their concern. That employment mandate they like to talk about is a pile of rubbish, and the stats they use to talk up any improvement in the labor front are even more flawed.
Technology and robotics are rapidly changing the employment landscape, sometimes in ways you hadn’t even noticed.