Added By

2 years ago

Rating (1 Vote)


Views 147   Reposts 0


Sourced From:
Rifkin, Jeremy (2014-04-01). The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism

Say’s Law by asserting that new technologies increase productivity, allowing the seller to produce more goods at a cheaper cost per unit. The increased supply of cheaper goods then creates its own demand and, in the process, forces competitors to invent their own technologies to increase productivity in order to sell their goods even more cheaply and win back or draw in new customers (or both). The entire process operates like a perpetual-motion machine. Cheaper prices, resulting from new technology and increased productivity, mean more money left over for consumers to spend elsewhere, which spurs a fresh round of competition among sellers.