First, thank you for that thoughtful reply, much better than calling me a retard.
I really don't think this type of economy would be efficient, at all, but this isn't really likely anyway in fact, I think it would be impossible. For what purpose would they be producing all of these things? To run other automated factories that don't ultimately produce anything?
Right. Supply needs demand. Demand needs supply.
Ultimately, an economy is just the movement of money, through the population, buying and selling to satisfy their wants and needs.
If the majority of the population has no money, they aren't buying stuff. And the rich alone aren't each buying enough shirts, shoes, desks, washing machines, etc., to keep an economy afloat by themselves, to make up for the vast majority not purchasing those items. You only need so many socks and dish washers as an individual. Not to mention, the rich usually purchase "nicer", higher quality things that often don't need replaced as much as the things purchased by someone on a smaller budget.
There's always a line of what the best tax rates are, the best mix of spending/purchasing, finance, etc, and the most efficient economy maximizes everything, which results in a lot of money circulating. If money circulating through the economy is, in fact the economy, the more, the better, as long as there are actual goods and services being purchased. If it's just finance and piles of money being pushed around, back and forth, then its just a bubble that will provide early investors massive ROIs, and often, late investors and the public massive debts.
So, if you tax everyone at 100%, or reduce purchasing to $0.00, money isn't moving and no one is hiring, no one is producing, and no one is getting paid. Credit is frozen, and no one wants to risk their own well-being getting it all going again...which is why Keynesian stimulus spending is what gets an economy out of the freezer, and economies that go through austerity generally stagnate much, much longer.
I think that there is already a glut of labor. If you look back to the conventional wisdom of the day 60-70-80 years ago, "progress", technology, etc, was all going to give the worker a nice 30 hour workweek with 5 weeks of paid vacation, and a decent, middle class life.
So, for example, if you increased wages/salaries today, so that 30 hours a week was full-time, you instantly reduce the labor glut, and increase hiring to make up for the 10 hours of labor lost with the new 30 hour FTE, as people go home after 30 hours and others are required to perform that same labor.
It requires higher wages/salaries...but again, you get people working, you give them more free time to do stuff they want to do (perhaps innovate and start a business), and more people have money to spend on stuff...essentially giving the companies "forced" to pay more, more revenue in return as more people have money to spend than before.
So, cut the full time work week to 30 hours, build in 5 weeks mandatory paid vacation, and more people are working than before, and more money moves around the economy, creating growth.
That is just one of many ways that you can increase employment and wages without destroying capitalism and taxing the JobCreators so much that they all move to Somalia. Personally, I think a 30 hour FTE week would be a great way to increase employment and create growth, all while encouraging people to take more risks and create more businesses, which then...wait for it...creates jobs.
But again, even this is a stopgap, and doesn't solve the future situation where there isn't enough jobs for everyone who wants one, even with 30 hour weeks for 48 weeks of the year.
Then what?