Why the cost of living is poised to plummet in the next 20 years

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.

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. Gas in back and chest How We Spend Our Money Today

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 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. Gas stoichiometry worksheet — nearly half of consumer income goes to clothes and food.

In India, with a population of 1.2 billion people, expenditures on food, transportation, and miscellaneous goods and services are most prominent.

These differences likely represent cultural differences in each of the three very different countries — but overall, you see that the majority of expenditures are in these top 7 categories:

To me, “demonetization” means the ability of technology to take a product or service that was previously expensive and make it substantially cheaper or potentially free (in the extreme boundary condition). N gas price It means removing money from the equation.

Consider Photography: In the Kodak years, photography was expensive. Gas explosion in texas You paid for the camera, for the film, for developing the film, and so on. Gas vs electric oven for baking cakes Today, during the megapixel era, the camera in your phone is free — no film, no developing. Gas station near me open Completely demonetized.

Consider Information/Research: In years past, collecting obscure data was hard, expensive in time if you did it yourself, or expensive in money if you hired researchers. Electricity youtube billy elliot Today, during the Google era, it’s free and the quality is 1000x better. Gas house edwards Access to information, data, and research is fully demonetized.

In the back of my book Abundance (page 289 of the recent edition), I provide a chart showing how we’ve demonetized $900,000 worth of products and services that you might have purchased between 1969 and 1989.

Twenty years ago, most well-off U.S. 7 gas laws citizens owned a camera, a video camera, a CD player, a stereo, a video game console, a cellphone, a watch, an alarm clock, a set of encyclopedias, a world atlas, a Thomas guide, and a whole bunch of other assets that easily add up to more than $900,000.

So now, let’s look at the top seven areas mentioned above where people globally are spending their cash today and how these things are likely to demonetize over the next decade or two. Electricity jokes (1) Transportation

Think about all of the related costs that disappear: auto insurance, auto repairs, parking, fuel, parking tickets. Gas dryer vs electric dryer safety Your overall cost of “getting around” will be 5 to 10 times cheaper when compared to owning a car.

Additional gains will be made as we learn to efficiently produce foods locally through vertical farming (note that 70% of food’s final retail price comes from transportation, storage and handling).

Healthcare can be roughly split into four major categories: (i) diagnostics, (ii) intervention/surgery, (iii) chronic care, and (iv) medicines.

(i) Diagnostics: AI has already demonstrated the ability to diagnose cancer patients better than the best doctors, image and diagnose pathology, look at genomics data and draw conclusions, and/or sort through gigabytes of phenotypic data… all for the cost of electricity.

(ii) Intervention/Surgery: In the near future, the best surgeons in the world will be robots, and they’ll be able to move with precision and image a surgical field in high magnification. Gas bubble in eye Each robotic surgeon can call upon the data from millions of previous robotic surgeries, outperforming the most experienced human counterpart. Wholesale electricity prices by state Again, with the cost asymptotically approaching zero.

(iv) Medicines: Medicines will be discovered and manufactured more efficiently by AIs and, perhaps in the near future, be compounded at home with the aid of a 3D printing machine that assembles your perfect medicines based on the needs and blood chemistries in that very moment.

It’s also worth noting the price of genomics sequencing is plummeting (as you’ll see below, at five times the rate of Moore’s Law). Electricity bill average Accurate sequencing should allow us to predict which diseases you’re likely to develop and which drugs are of highest use to treat you. Gas x extra strength vs ultra strength The plummeting cost to sequence the human genome (Source: NHGRI) (4) Housing

Think about what drives high housing costs. Electricity transmission and distribution costs Why does a single-family apartment in Manhattan cost $10 million, while the same square footage on the outskirts of St. Electricity in the body causes Louis can be purchased for $100,000?

Location. U gas station near me Location. Gas in oil pan Location. Electricity meaning People flock to high-density, desired areas near the jobs and the entertainment. Gas company This market demand drives up the price.

Housing will demonetize for two reasons: The first reason is because of two key technologies which make the proximity of your home to your job irrelevant, meaning you can live anywhere (specifically, where the real estate is cheap):

(1) Autonomous Cars: If your commute time can become time to read, relax, sleep, watch a movie, have a meeting — does it matter if your commute is 90 minutes?

(2) Virtual Reality: What happens when your workplace is actually a virtual office where your co-workers are avatars? When you no longer need to commute at all. Electricity a level physics You wake up, plug into your virtual workspace, and telecommute from the farm or from the island of Lesvos.

A number of startups are now exploring how 3D printed structures and buildings can dramatically reduce the cost of construction and the amount of time it takes to build a building.

For example, a company out of China, WinSun, is 3D printing entire apartment buildings (see picture below): 6-story building 3D printed by WinSun. Gas or electricity more expensive (5) Energy

Five thousand times more energy hits the surface of the Earth from the Sun in an hour than all humanity uses in a year. Gas vs diesel mpg Solar is abundant worldwide. Electricity outage compensation Better yet, the poorest countries on Earth are the sunniest.

Today, the cost of solar has dropped to ~$0.03 kWh. Electricity usage by country The cost of solar will continue to demonetize through further material science advances (e.g. Electricity symbols ks2 worksheet perovskite) that increase efficiencies. Electricity and magnetism purcell (6) Education

Coursera, Khan Academy, and schools like Harvard, MIT and Stanford have thousands of hours of high-quality instruction online, available to anyone on the planet with an Internet connection.

But this is just the beginning. Electricity bill cost Soon the best professors in the world will be AIs able to know the exact abilities, needs, desires and knowledge of a student and teach them exactly what they need in the best fashion at the perfect rate.

Accordingly, the child of a billionaire or the child of a pauper will have access to the same (best) education delivered by such an AI, effectively for free. Gas city indiana restaurants (7) Entertainment

Today, with the advent of music streaming services, YouTube, Netflix and the iPhone App Store, we’re seeing an explosion of available selections at the same time that the universe of options rapidly demonetizes.

YouTube has over a billion users — almost one-third of all people on the Internet — and every day, people watch hundreds of millions of hours on YouTube and generate billions of views.