Source | SingularityHub : By Peter Diamandis
People are concerned about how AI and robotics are taking jobs, destroying livelihoods, reducing our earning capacity, and subsequently destroying the economy.
In anticipation, countries like Canada, India and Finland are running experiments to pilot the idea of “universal basic income” — the unconditional provision of a regular sum of money from the government to support livelihood independent of employment.
But what people aren’t talking about, and what’s getting my attention, is a forthcoming rapid demonetization of the cost of living.
Meaning — it’s getting cheaper and cheaper to meet our basic needs.
Powered by developments in exponential technologies, the cost of housing, transportation, food, health care, entertainment, clothing, education and so on will fall, eventually approaching, believe it or not, zero.
In this blog, I’ll explore how people spend their money now and how “technological socialism” (i.e., having our lives taken care of by technology) can demonetize living.
As an entrepreneur, CEO or leader, understanding this trend and its implications is important…it will change the way we live, work, and play in the years ahead.
How We Spend Our Money Today
Spending habits around the world tell a pretty consistent story — we tend to spend money on many of the same basic products and services.
Take a look at how consumers spend their money in three large economies: The United States, China, and India.
In the U.S., in 2011, 33% of the average American’s income was spent on housing, followed by 16% spent on transportation, 12% spent on food, 6% on healthcare, and 5% on entertainment.
In other words, more than 75% of Americans’ expenditures come from housing, transportation, food, personal insurance, and health.
In China, per a recent Goldman Sachs Investment Research report, there is a similar breakdown — food, home, mobility, and well-being make up the majority of the expenditures.
Interestingly, in China, consumers care significantly more about looking good and eating better (and less about having more fun) than in the U.S. — nearly half of consumer income goes to clothes and food.