Alternatively, as massive increases in productivity in manufacturing lead to plunging prices of goods, much smaller incomes will be able to support an increasing standard of living.
People still needs some income at all. Otherwise, they will either rely on welfare or resort to crime for survival. This is a explosive combination, specially in a society where the unemployable's fare is seen as just and self inflicted.
Exactly right. I feel housing/medical expenses remain independent of all the gain productivity. With PEs buying large housing stock in markets and hospitals keep getting increasingly larger and integrated I do not see what would force them to not extract maximum possible money irrespective of the cost to them.
