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3.3 How the value of labor has changed over time? Is it good or bad? How to address the ramifications?

As human become better and better to economize their truly scarce resource, time with or without capital, technology, trade, in order to produce goods to satisfy their needs and provide for their future, their productivity increase over time. In other words, the value of labor increased over time because of lesser amount of input yield greater or same amount of output.

In long term, the real price of goods decreased due to the productivity increased, which is good for human, goods such as instant communication over space, lighting, utilities have already became very affordable for human in a civilized society.

As human become specialized in order to become more productive in a particular tasks, they are also taking risks that their production may not be valuable in future due to the abundance of goods, which cause the price of goods dramatically decreased over time or even become free. It will not be a big problem if 1) they have enough savings to support their livings and are able to learn new skills to produce valuable goods to others, 2) the society has a hard money system that can prevent their savings value losing too fast, a loose money system will increase their time preference and it will affect the skills they are going to learn 3) the technology didn’t accelerate too fast due to the massive amount of money that are chasing behind which will cause their newly learned & specialized skills become obsolete very soon, thus, further increase their time preference when choosing the new skills to learn.

In the worst scenario, human still will act accordingly to address the possible ramification mentioned above, they may prioritize to learn many of some life skills and collaborate with others to ensure their survival if they face high level of uncertainty of becoming too specialized. Thus, it will cause the value of labor decrease.