Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
Why Stagflation Is Pushing Factory Automation Into Overdrive
In episode 11 of Stagflation Conversations, Lucas and Luna examine how stagflation is accelerating automation in US manufacturing. With real GDP growth at just 2 percent annualized and labor costs rising, companies are finding that investing in robots and AI-powered machinery is cheaper than hiring workers. Lucas points to a record 4.5 percent of capital expenditure now going to automation, citing John Deere automating its tractor plants in Waterloo, Iowa, where output rose 18 percent while headcount stayed flat. Luna contrasts the 1970s, when high inflation crushed capital spending, with…
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