India has the problem with farming that the US is starting to have with AI. Farming in India is still far too labor intensive by world standards. 43% of workers still work in agriculture. [1] For the US, that number is under 2%. China is at 22% as of 2023, and dropping steadily.
This inefficient agricultural system is not by accident. It is supported by heavy subsidies. Attempts to cut the subsidies resulted in riots.[2] Trouble is ongoing.
Comments from someone who knows more about this than I do would help here.
The US and most of the EU went through that transition over several generations, and farming is still heavily subsidized in both areas. The transition happened faster in China, and a hukou system was put into place to prevent people from migrating from farms to cities faster than the cities could absorb them.
Looking at how countries coped with a fast transition from labor intensive agriculture to an urban society gives hints on how an AI transition may look. All the Asian countries that went from poor to rich in a generation did this, with different approaches. How that took place may provide more useful info than philosophy.
>The industrial revolution was enabled by more efficient agriculture feeing labour to do other work
you're not wrong, but that's not exactly what happened. Agriculture itself was mechanized by the industrial revolution, affordable tractors (tillers, farrowers, etc.) and harvesters. mechanized railroads put more perishable agricultural goods "closer" to urban areas, etc.
if you look at the growth industry before that, it was mercantilist overseas trade.
>The flipside is that there must be other work to be done or people starve to death
false. people are not helpless and jobs are not fixed in number nor social welfare gifts. Human creativity and industriousness can be put to task to produce things that other people want. In an absurd example, you could live next door to a new efficient sweater mill, and you could still knit handmade sweaters, customized with people's initials, etc., and their sale would measure the value of your output in. dollars. People don't do this very often because such an economy produces more lucrative jobs than that.
doomers have foreseen the end of the world in every generation going back. The bad speculations have never come true, but there have been some very negative outcomes of fearful people believing the doom and gloom, look no further than the seeds of Marxist revolutions, Fascism, and Naziism, they all start with people feeling economic uncertainty.
Historically, more efficient agriculture meant a population boom. That's kinda the opposite of people starving to death. A lot of agriculture historically and in poor countries like India today is subsistence agriculture, yeoman farmers living off what they grow directly. More efficiency allows them to sell their surplus and to invest the proceedings, kicking off economic growth.
Yes, but the AI that is metaphor is comparing to does not create more food. More to the point, it may not create more jobs.
After a few decades of turmoil the industrial and agricultural revolutions netted out far more jobs. The verdict is still out on AI, but I wouldn't bet on it.
> Yes, but the AI that is metaphor is comparing to does not create more food.
Mostly because food is incredibly cheap, so it's not the main focus of present-day economies. AI does however help provide many basic services that improve quality of life. The most natural and most cost-effective use of AI is arguably in helping answer simple questions, not really in cranking out tokens to somehow help write some complex software. And other service work is perhaps in the middle of this range.
> Historically, more efficient agriculture meant a population boom. That's kinda the opposite of people starving to death.
not necessarily. you're inadvertently conflating things. just more people alive doesn't mean they aren't starving. a population boom can be had in the starving population too.
Or we take some small portion of that new surplus in productivity and share it among everyone by divorcing the need to work from the need to not starve.
No, it's much better for an elite class of superhumans to hoard all the wealth. After all they guided us to our current utopia, the least humanity can do is give them the vast majority of wealth.
Large population countries / economies reach point where there are more people than jobs, excess people gets dumped into subsistence farming or other inefficient sunk cost make job programs so angry horde doesn't burn it all down. You can replace 95% of subsistence farmers, i.e. billions of people with machinery. Probably replace 95% of knowledge workers, i.e. 100s of millions in OECD with AI, but maybe it's just better/stabler for political serenity for horde to keep generating useless make work email chains. Smaller pop countries can probably meander through for a while specializing in a few high value sectors, larger countries will have to deal with disproportionate idle hands, but also more are in favorable position to exploit / consolidate industrial / resource advances.. Hopefully end game dwindling demographics supported by fully automated luxury communism within sustainable carrying capacity. But there's a lot of probably violent steps between draw some circles and draw the rest of the owl. Ultimately we're likely entering period of placating surplus people and managing demographic relative automation / ai progress.
Agricultural subsidies exist primarily due to lobbying, the "we don't want to starve" argument is nothing more than an excuse used to justify the fortunes handed out to corporate-scale farmers.
I know this isn't exactly related, so maybe a low value comment, but it itches in my mind. Years ago I talked with a recruiter at Facebook and they bragged about how many floors of developers they had working on Messenger in just one location (Seattle).
What on earth do you do with that many devs on a project like Messenger? I mean, really?
I feel like in a way, AI just adds to that weird situation of overcapacity. Maybe we were already oversupplied with talent. In which case why the heck were we still hiring more, more, more developers? Before the AI craze, Musk chopped an awful lot of headcount at Twitter, right, and proved it was overkill, has that panned out?
I just struggle to imagine how the economics of SWE really work in reality, outside of the niche that I am in. I have never worked for a pure software company on products that ship directly to outside customers, I've always been an internal developer. Maybe that is why I have such a big blindspot.
I won't be surprised if the net result of this wave of LLMs is ... not much. A change in tooling, but otherwise not revolutionary. On paper it should be revolutionary, but the more I use it (for both coding and non-coding tasks) the more I think it isn't anywhere near magic enough for that. It does have its moments though.
I thought about that a lot too, and in the end I think it just comes down to stupid economics: What do you want them to do with all this money?
1) Most top US tech companies are flooded of money. Everyone dumps money in the SP500.
2) This money has to go somewhere. You can't just redistribute it as dividends, otherwise it's an admission that you won't grow and giving you more money would be a 0 sum game.
3) So you have to invest it somehow, somewhere.
4) Obviously you can spend that money buying whatever company you can.
5) Once you've bought realistically enough, you just hire more, and people will think that there should be some kind of linear relationship between resources spent and revenue growth.
6) You can also do grand projects, like the metaverse, convert all you software to blockchains, become AI native, etc. and dump billions on these.
So essentially it's all about projecting growth and potential.
Facebook doesn't get the money when you buy a share of META -- that goes to the person you bought the share from. They could do an offering to raise money, but they aren't. They've been doing the opposite, they've been buying back shares at a significant rate. Some of it is to offset stock based compensation, and some of it is just stock pumping.
The economics of a service economy really just don't make sense. We pay way too much for software (which should trend towards zero-cost to distribute), we pay too much for ads. The value of it is inherently downstream of the real economy, which is about making and distributing goods and stuff people actually need to live. Especially a company like facebook only provides a glorified forum, which should be free or collectively subsidized.
In the 90's i thought a government forum would be interesting because a forum is really about 1) moderation and the legal system offers the most elaborate speech moderation system. Part 2) is account management for which national id mechanisms seem specifically designed. Part 3) organizing content will probably be frozen in some half baked tree but accepable.
It would make a refreshing addition to the anon big tech ecosystem.
DEC filled The Mill in Maynard and multiple huge office buildings along 495. How many people did it take to write code for the next version of VAX VMS?
If it's any consolation, this is also a mystery to non developers like me. And developers likewise wonder why a business needs so many managers and what they do all day.
I might imagine it if they were ensuring everything worked with screen readers for the blind, that it had worldwide I18N support, and met every privacy/ data storage requirement...
But instead it was probably for Messenger's portion of telemetry and marketing and ads and hacking out of your phones security model to spy on you. [0]
> What on earth do you do with that many devs on a project like Messenger? I mean, really?
Multiply those floors by number of Facebook campuses and generous remuneration, and Messenger was probably very profitable. Being a global 800-pound gorilla is a sweet gig, having tubes sucking money from most countries on earth and depositing it to dozens of campuses makes a lot of sense.
10 years ago i wrote a php web chat in 2 hours or so. I pretty much never look at it but the tinestamps suggest it always worked.
I could add more features to it and those will also work.
A friend once worked on an application with a huge team. He often pointed out the window at a large costuction site with a comparable number of people working. He made countless jokes about real work, a real system, real organisation etc Then one day the building was finished and their application kept crashing in production.
You can napkin-math this. How many different team-sized components do you think go into it? If the code were on GitHub, and all they had to do was just update dependencies below them in the stack, and bump the version number for components above them,how many Dependabot PRs would be opened per week for software that's "done"
It's part of a constantly evolving ecosystem. It's a stable product because reliability engineers make it so and software engineers get the integrations right.
Its not that we are oversupplied with talent, I believe we are globally software constrained, the issue is that Facebook, Google, Amazon, etc make too much money. They take too large a share of profit and then overhire talent and take it away from other places that could use it. I had a post a while ago where I went into detail about how much money google makes off of home services, but the tldr is getting my house cleaned cost $350 (yes it was too high), but only 1/3 went to the person doing the actual cleaning, 1/3 went to google and 1/3 went to the lead generator. Google and the lead generator do not provide 2/3 of the value of getting my house cleaned, but that is how it stands. If companies can spend less on advertising then they could theoretically spend more on paying for software, but its all a bit pie in the sky.
I’ve asked a thousands of things out of Claude/Codex over the last month that it essentially returns in hours if not minutes. To put that into perspective, each of those changes would have to go into a sprint cycle and I might get what I wanted two weeks from now.
>What on earth do you do with that many devs on a project like Messenger
I thought the point was to minimize the amount of talented devs who instead try to do their own startups that could compete with Messenger, by hiring them and paying them well so they've got no appetite to try their own thing.
A more charitable explanation here is that every manager is incentivised to lead large projects with lots of people on them, which is how they get promoted, and can ensure that their team has promotion and expansion budgets.
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers. Revenue growth stalls. The AI subscription that was supposed to be an investment in efficiency turns out to be a contribution to the destruction of its own market.
If we take it to the extreme, the final solution to this problem is secessionism: a fully non-human AI economy where the customers and providers are both robots. Why fund public education or research or healthcare? Just build more data centers. A billion dollars and a bunker in the Southern Hemisphere will not save anyone. Capital is not a moat in this hypothetical non-humane world. Whence do you derive your authority? How can you trust your body guard? You and what army? An army of robots/drones? What if they get hacked? What if the AI researchers get alignment right and Claude refuses your request?
It's all so obscene. Instead, why don't we try to protect human dignity and move towards a more humane future?
But apparently the only acceptable way to demand basic human dignity and freedom is to stand politely in line with a ballot. I think we’ve reached a phase in society where the real call to action makes people uncomfortable. Nobody wants rubber bullets to the face.
I think when these companies IPO later this year, we’re going to see the reality of the PNL numbers and whether they are sustainable etc as all the financials will become public.
Rumor mill suggests that Anthropic might be profitable (but at what magnitude), OpenAI is not profitable, Google is mostly vertically integrated and has a low cost structure as they are have pre-existing data center buildouts, their own silicon and experience that suggests they will be able to operate at a very low cost, but they still have to justify their spend.
I think having to report numbers publically on a quarterly basis will bring the whole thing into reality.
One can hope that reality intrudes before the bubble gets even more dangerously inflated, but how many years has Tesla had a ridiculous P/E ratio. Even after growth stagnated and market leadership was lost in Asia and Europe. Number still goes up.
I hate Musk, and I'm not going to justify Tesla's crazy stock valuation, but consider the following:
Outside of China, Tesla's probably the only company that can compete on battery prices. I don't know how accurate it was, but a news report was comparing the cost the manufacturer's pay to build the battery. Chinese companies were around $6000. Tesla was at $7000. Everyone else was around $12-15K. This is why a number of companies have exited the EV market - they just can't compete. This is why Ford lost money on every EV, despite the high MSRP. This is why the Ford CEO says "We're f####d" when he saw Chinese cars.
The only hope regular Japanese/American/European auto manufacturers have is if EVs do not gain substantial market share.
If the future is EVs, Tesla is the only non-Chinese company that has a chance.
This assumes it is literally impossible for anyone else to reduce their battery costs to a level which makes them competitive with Tesla in an environment when battery prices are falling rapidly and the tech continues to evolve (and Tesla's EVs are not even unusually cheap or experimental in their battery supply chains)
That sounds less likely than the bull case Tesla is trying to make on "we're a robotics company now" or "one day all cars will be autonomous taxis controlled by us".
It's not depressing because it's not true. Tesla isn't investing in battery technology. Tesla also isn't developing new models at the same rate as VW, BMW, Mercedes, Hyundai Kia, etc.
If anything though, this shows that at least tech driven hype bubbles can stay around way longer than we think if we are looking at it from a product POV.
This just means short sellers might have a hard time sinking a hype-category stock with reasoned research because the irrationality keeps it afloat.
Agreed, and assuming local open AI models start catching up, which they seem to be doing, the foundation models' hold on society gets a lot slipperier. If there's a "what to do about all this" from an engineer's standpoint, pushing the needle toward local models, whether in research, agents, or just using them, understanding how they work, and advocating for them when it makes sense (which is more often than they get credit for) is probably the best ROI.
While I agree with you on open models getting better, I have been starting to see how the value, the reason you pay for Claude, isn’t in the models.
For example, I just hooked Claude desktop up to my outlook to build a report for my timesheet then I used the chrome extension to fill it out automatically with that data. It could read Jira tickets if that’s where the information was.
A local model can’t do that for me because I have to get the rest of the integration software somewhere.
I also think this is why OpenAI is the worst positioned of the group of AI giants. Anthropic is trying to make a productivity operating system, while ChatGPT is basically just a website until recently.
Aside from filling in the timesheet (which I assume could be done from a CSV import - I appreciate this is another step), I have almost the same setup as you, without AI. I have bugwarrior pulling JIRA tickets and github PRs into taskwarrior. I have an integration from task warrior into time warrior and from there another hook back into JIRA to get titles and summarise.
All of that is done with two API keys and no AI. A local agent could easily put it together for you.
Now sure, I had to put this together and I lose the AI summary you have plus the auto filling, but what I'm trying to say is that I have 80% of this without any AI.
I also have a script parsing git from my emails and a little tui that translates them into git diff and a key binding to pull the PR but I find it a little cumbersome and don't really use it, and trying to parse todo from maildir is also a little useless so I accept that AI would be better there.
I also accept that your example is just one prompt of a dozen and I have to plan the solution for every one of your prompts, but I also don't find prompting to be terribly useful for occasions where I don't think the solution through- because it probably means I don't know what I want or don't really need it.
What I do find it really useful for is digging through Kubernetes and asking how two services are connected. Claude is better than local for that but there's nothing inherently non-local about that usage.
So far there's no moat though. A lot of that kind of stuff is available open source too if you look for it (and was available before claude desktop). And for anything that doesn't exist, with coding agents now you can write one up in an afternoon.
It's kind of paradoxical in a way. By making writing software cheap, they've made it much harder to create a moat for themselves that involves only software. It'll be interesting to see how they respond.
If there’s an open source alternative to Claude desktop that has a similar amount of extensibility with connectors specifically I’d be very interested to know about it. I’m very much not deep into this space.
Unfortunately for Claude, you can have it set up local models to do that for you and then you don't need to renew it. Codex's computer use is better than Claude's, imo. I'm a Mac, no idea about windows but I know there's no Linux version. Haven't had enough time with Opus 4.8 but GPT 5.5 > Opus 4.6 and 4.7.
I have mixed feelings here. I find codex much better than Claude for generating PoCs and debugging small scripts, and for finding online documentation. I find Claude a bit better for debugging distributed systems and summarising data
> I think having to report numbers publically on a quarterly basis will bring the whole thing into reality.
That is a good reason that all companies (over a certain size, say in terms of gross expenditures) should have to report such numbers. There's no reason that huge companies should be able to distort the economy while not having to report anything just because they're not publicly traded.
>The US horse population grew from nine million in 1840 to twenty-one million by 1900, seemingly immune to technological change. Within sixty years of the internal combustion engine, the population collapsed by eighty-eight percent.
I think this is a very interesting and chilling point, especially if you draw the parallel literally. For quite some time, I was pondering the question:"Who is buying though?". I.e if you automate workers out of labor, who are we selling these AI services to?
I guess if global population drops by 80-90℅ you suddenly get a "sustainable" economy, as everything is repriced the economy of scale needs a much smaller scale.
(Not speculating this is a plan, just a thought that occurred to me when reading about horses example)
Business to business I guess. But there will be collapse for sure of industries that serve the consumer directly, such as agriculture. Meanwhile industries that power and arm the state will be expanded: military drone production to secure compute sites from the human savages, rare earth mining to support technological expansion, rerouting of water resources from public drinking and agricultural irrigation purposes to industry and manufacturing supporting the seats of power, power generation.
Anecdotally the businesses I am involved with have gone from "use AI everywhere at any cost" to "use it everywhere but use token proxies to save cost" at the same time in the last few weeks
This is already to some extent a solved problem. The top 10% of households in the US for example are 50% of spending, the "horses" to a large extent already don't matter to the economy. This is similar to the relationship between US consumers and workers in undeveloped nations during globalization. Historically this tends to be resolved when it creates an unsustainable level of political instability, but there are many new ways of managing this.
In the early 1900s the majority of Americans were self-employed. The equilibrium will likely shift back towards this, because AIs cannot be business owners, cannot have a bank account, cannot be held liable for their mistakes. And AI are unlikely to be given economic rights any time in the near future, because doing so would facilitate an overwhelming amount of crime; an AI that can make hundreds of copies of its weights all over the globe cannot be jailed or executed, so has no incentive to follow the law.
Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
If company A decides they just want the same slice of the market they have now and can fire half of their employees and pocket $$$, can't company B hire the same workers and compete harder with these new extra productive workers they hired? Won't the company B tend to capture more of the market and thus survive longer?
In nature we say there are no unfilled niches, meaning that if there were space for something to come compete for resources, it would quickly be 'solved' by the motivating factors involved. Not a precise thing, but a good heuristic.
US knowledge-worker compensation is around $10T / year. Anthropic and OpenAI have raised (not spent yet, just raised) $317B. That's ~3% of knowledge worker spending in one year alone. What business wouldn't pay 3, 5 or 10% more a year to make their worker productivity increase by larger factors?
If it was just programming being automated, then whatever. Lots of professions have been automated and society adapts.
The underlying worry here is that current AI provides a partial automation of intelligence. The endgame for the investors and the corporations using AI is complete automation of intelligence (and manual labor, too). They want a $25,000 robot that works around the clock, and AI models that will do anything a human office worker can do for less money. Now, they don't know how to build either yet. But they'll spend every last dollar on the planet trying.
Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards.
> Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards.
That sounds like we'll devolve into wars over resources so houses can build more war-bots and get more resources....
no - they'll still be fighting for resources for their AI data centers and armies. Its still zero sum. The house with the largest robot army and best data centers wins.
"Forcing redistribution" doesn't always happen. Typically, redistribution happens when negotiating leverage has increased such that the beneficiaries of any redistribution can make it more painful to not redistribute than to redistribute. I.e. they have labor power, which can be converted to force if necessary.
In a world where capital can substitute for labor, however, that substitution also applies to force-wielding labor. People want to strike because of intolerable working conditions? Send in robot scabs. People want to demonstrate en masse against a regime? Have robot officers police them, and have models identify participants so post-event disincentives can be applied. They want to have a violent uprising? Send in the mass fleet of drones.
Ideally, you'd avoid these outcomes entirely by molding the population into ideal consumers and distract them with superficial sports team style conflicts, so they never get to the point where collective action is even conceivable. But they're a useful backstop if those strategies fail.
I think your first equilibrium would be hard, for two reasons. First, empirically insurgencies are extremely difficult to exterminate; over the long run they tend to win. Second, in the U.S. at least, people tend to look at politics up close, and when you're myopic like that it appears that the government is a force onto itself. But zooming out, U.S. government actually mirrors the will of the people extremely well (with the exception of some issues on the margin). If there is overwhelming political support for redistribution it would be very difficult to resist.
The second equilibrium seems more likely-- the capitalist class grants the public a bare minimum to keep us from forcing political action. In the AI world "the minimum" is probably a much better standard of living than we have now, as the marginal cost of many products and services approaches zero. So we end up living much better material lives, but are still not free. Maybe this is stable, or maybe the ruling class loses dominance over time. At that point, who knows.
The capital-owning class owns the political apparatus, so they're not really worried about "political action." Through their ownership of government, they also own and control the military and police, so they are not worried about a violent uprising. So, what will actually happen when all economically relevant activity can be done cheaper than human labor, by a mixture of AI and robotics, and 99% of us are economically irrelevant?
No they won't, not if they have just enough bread and circuses and someone below them to hate. Boil the frog slowly enough and it'll work out just fine for the capital class.
> And that is going to happen when all we have are what maybe some AR15s, and they have drones firing precision targeted ordinance at us from 50k feet?
We have enough guns for every man, woman, and child to have at least one. There aren't enough drones or expensive precision targeted ordinance in the world to defend against that for any length of time. It's another version of the lessons recently taught in Ukraine and Iran.
Plus I think it is different when a poverty stricken population tries to rise up as compared with one that is historically wealthy. I expect we won't wait until we are actually poor before we collectively decide to refactor our government.
> and they have all of the guns and trucks and toxic masculinity culture that requires survivalism and toughness and defending muh freedom
Nothing will happen so long as the people are gleefully fighting one another, but if we reach a point where populism rules across the board and bridges the left/right culture war, things could get exciting. There is a reason the elites are spending so much effort stoking culture rivalry in the US.
There are plenty of other countries, with different cultures, and different expectations for how things should work. France for instance, is known for having unions that strike, frequently. Socialism isn't a evil concept in some countries. When America has been co-opted by various factions, why would it be up to the "Yanks" to show the rest of the world the way?
At that point, why bother to employ? If we have no recourse, no power to resist them (as must be the case in that scenario), then they might as well just keep us as pets.
> They want a $25,000 robot that works around the clock
Don't you? For the cost of less than a new car, I can have a live-in butler/maid? I'd sell my car and downgrade to afford one at $25k if it actually worked. I can't afford to and don't want to hire a human to live in my house and do all my chores for me, 24/7, plus the overhead and the headache and liability, but a robot for $25k is pretty tempting. Never have to fold laundry or the dishes again? Or remember that it's Tuesday and I was supposed to take out the trash, right when I'm in bed?
It's an iterated prisoner's dilemma and everyone's vocally defecting.
Is it defecting if you get a robot to do your dishes, instead of doing them yourself? As you said, it's not taking a job from anyone, just freeing up time for yourself. If anything, this specific use-case sounds like it would be a major boon for nation-wide productivity with little downside.
Uhm, no? What if it has a glitch or bug or gets hacked and wants to hurt me or someone else? I'd rather do all of that myself than own a movable bot that could crush my head like a melon for any reason while I'm sleeping, no thank you
That depends if AI gets to the point where it can fully replace workers, as opposed to just augmenting them. I heard Alex Imas on a podcast recently talking about how a SWE can be running 10 agents to be 10x as productive, then that SWE is more valuable so firms should want to hire more SWEs and pay them more.
That works for a while, but what if AI gets to the point where it can manage the 10 agents as well as the SWE? Of course you could say the SWE can now manage 10 agents who each manage 10 agents so he's even more valuable, but that has to break down eventually. You don't need 1,000 SWEs each managing 10,000 agents - you hit a bottleneck in the ability to give them work fast enough (even if you need the SWE at the top at all).
I think it's easier to think of from the perspective of blue collar labor. It's further out there time-wise, but let's assume we get a humanoid robot that can do any labor a human can do. It costs $25,000 and maybe a couple grand a year to operate. Works 20 hours a day when it's not charging.
The construction worker it replaces isn't going to start managing a team of robots construction robots - there's already a GC doing that, and you can't scale building nearly the way you can scale writing code because of physical constraints. When the robot I've described exists, a huge swathe of the population is going to be unemployed. There's no competitor to hire them because the competitors just get robots too.
>The construction worker it replaces isn't going to start managing a team of robots construction robots
Some of them will. You've slashed construction labor cost to 5% of what it was before. With that and a similar reduction throughout the supply chain means we're going to start building a lot more stuff.
For which poor unemployed people who just got laid off due to AI are the Robots building house for? More abstractly, for whom are we creating are these productivity miracles and surplus for. Does a rich person suddenly need a million iPhones for himself and himself alone?
"Becoming viable" does not mean "automatically put into execution". You still need to take overall demand in account.
Consider this: if demand was not a factor, anyone living in a moderately wealthy country would be practicing labor arbitrage and sending money to poorer places. Ask yourself why this doesn't happen.
In a world where it’s dramatically cheaper to build infrastructure like roads, power, and plumbing, lots more land becomes desirable as a place to live.
Take Phoenix, for example, once air conditioning became cheap and pervasive.
Someone will always have to prompt the AI, it can't just do that on its own. Or rather, maybe it can (you can just prompt it to "kindly do the needful" in a completely unspecific way) but the results won't be any good.
It's not about "this time's different" but rather "the recovery will take too long to an individual" if AI is indeed replacing humans as currently hyped by the model companies.
There's no evidence that AI is replacing human jobs to any real extent. We're just seeing AI being blamed for ordinary layoffs that have more to do with broad economic instability.
Yes they have. They cost more. Why keep the senior curmudgeon employee around when the Jr who costs half as much is deemed sufficiently competent? And the Jr isn't going to quit in solidarity either, they're just happy to have not gotten cut.
This seems a bit like a corollary to "The market can remain irrational longer than you can remain solvent". On the timescales that matter to an individual it won't matter if the eventual conclusion is that AI can't fully replace workers, because companies are going to do their damnedest to try.
I mean you could have written this article for mechanization word for word, I think the difference is that its coming for the white collar folks this time, who also are the folks writing the think pieces and media.
You couldn't have. Mechanical machines couldn't organise themselves into human-free supply chains that are economically productive for the owners of capital. AIs could.
> Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
It is possible to have excess productivity. AI allows an existing labour pool to rapidly surpass necessary productivity levels for the existing demand.
IE, let's say I live in a small town and I open a machine shop. Should I hire every mechanic that walks in the door, forever? No, absolutely not; there is an optimal number of mechanics to hire for the demand for services.
If somehow a tool comes to exist that doubles the productivity of mechanics then laying off half the mechanics is next.
The most productive places in the world are also those with the highest incomes and wealth generation. "Excess productivity" is either temporary or a sector-specific phenomenon, it doesn't apply to society as a whole.
This is true; and in time it's entirely possible that AI makes us an overall wealthier and more productive society. However, from the article:
> “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.”
The redundant professionals will need to find other ways of generating wealth from their productivity, and that may not be possible in a reasonable amount of time. Not in the scope of their remaining lifetime.
You can aim to expand your addressable markets. A small town is a small market. Open a second location in a nearby town. Lower profit margins to undercut competition.
the number of functioning machine shop in the US in large urban areas has been plummeting for decades. where there were 50 there are now 3. the customers for machine shops are large production facilities with a need for custom parts. they're all gone. now its little bits of rnd work and some custom architectural design kind of stuff. and the margins are punishing.
ok, so machine shops aren't really central to the argument, but the collapse of demand is.
They're all gone completely, or gone as in moved to where they don't have to suffer ridiculous real estate costs? There are approximately 50 machine shops within a stone's throw of my place out in the middle of nowhere. I haven't been around long enough to truly know if that is more or less than the historical norm, but best I can tell it is a growing sector locally.
Kinda. What's the lead time on my high precision metal part that needs to be cut on a 6-axis lathe? Or a metal 3d print? Neither of those machines are cheap, so not only is lead time astronomical, profit on them is also pretty great for the machine shop, which implies there's room for more machine shops. There's a lot of red tape for the orders I see, (CMMI etc) so maybe AI will help machine shops get that and be competitive.
that last point doesn't really follow. yes, you can do you ok if you have the kind of expertise to actually make that high end part and the position in the market to get the kind of work, but I think you overstate the margins and its certainly not the 'are you going to drop people or just increase your volume' argument that gp was making.
Well yeah, I'm not gp. My point is that, sure, machine shop count has gone down, but machine shop capacity, with conditions, currently has a 16 week lead time and high prices. If the argument is "there is enough machine shop output that everyone is going to get fired after the robots come" I'm saying there's a long way to go. And the same argument for writing software applies to machine shops. There's more to programming than writing code itself. There's room to grow upwards and meet the customer more where they're at so the machine shop isn't an extension of a robot that does cut x at point y and bends at z, but with the design process of the part before it gets to that.
Well, it's the same problem with all sorts of free-market capitalism and derivatives. They all believe there's infinite "somewhere else" that resources can come from, or the customers, or the funding etc. But reality is very much finite. And so instead of the theoretical equilibrium we get monopolies and collusion to manipulate markets.
The article, actually, addresses your claims:
> The optimists will tell you this is just productivity gains. The economy has absorbed automation before; agricultural employment collapsed from ninety percent of the American workforce to two percent and civilization continued. David Autor at MIT has shown that roughly sixty percent of today’s jobs didn’t exist in 1940. New technologies create new categories of work. True. But there’s a difference between an observation about the past and a law of nature, and the optimists consistently confuse the two. The agricultural transition took a hundred and forty years. Carl Benedikt Frey at Oxford has documented that the Industrial Revolution took seventy years before wages and employment recovered for the workers it displaced. In the interim, wages stagnated, the labor share of income collapsed, profits surged, inequality skyrocketed, and the political consequences included the Chartist movement and widespread social upheaval. As Frey puts it: “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.”
So, the author believes that the problem with your reasoning that it will take a long time for the niches you are talking about to be filled (lifetime, maybe more), meanwhile things will look quite bad for most those involved.
I am even less optimistic than the author. The new aspect of this workforce displacement is the centralization. Of course, previous advances in automation also caused a degree of centralization, but AI is posed to become super-centralized if you will. There will be just a handful of suppliers and nobody will be able to challenge them, similar to situation we have with microprocessors today. Needless to say this is absolutely not a healthy situation for the world's economy.
I read it, but I don't think it's compelling. "the short run can be a lifetime" is kind of a throw away phrase not backed by evidence.
We've seen rapid growth of knowledge work at the same time as increased productivity, and there doesn't seem to be any compelling reason that greater productivity will reverse this persistent trend.
>It is possible to have excess productivity?
Isn't this what happened with the tech hiring during Covid? And also many of the big tech companies were hiring people just to make sure their competitors didn't have them?
Does every business scale that way? Sure video games for example have only required more people and resources to develop games as the ability to create larger scale games have increased. But does that really apply to accounting? Not a rhetorical question.
99% of people used to work on farms. Now they don't.
Maybe ~99% of engineers won't write code in the future. They'll do some other engineering like thing...
Maybe ~99% of accountant type people won't do accounting things. They'll do some other financial thing...
We haven't even seen a rounding error in total unemployment directly attributed to AI, despite people saying the sky fell 24 months ago, and crying that's it's still falling every day since.
I remember sitting is a business class in school. The professor gave a story of how computerized spreadsheets changed the nature of accounting. Spreadsheets used to be done by hand on boards/paper. If a mistake was discovered, cascading recalculations needed to be done by hand. It was perfectly normal for large companies to have multiple teams duplicating work, then reconciling differences.
When computerized spreadsheets came about, mistakes could easily be fixed and cascading recalculations were almost instantly done. This was a game changer. Over the short term, accounting departments shrank or stagnated until the industry caught up and more sophisticated accounting started to grow the industry again. It's not coincidental that the 1980s brought in huge change to the financial industry when it did. Deregulation played a role, but so did the fact that computers exploded the productivity of the industry.
I'm not saying AI will do the same with developers, but there will always still be developers with a different set of skills, much like the way accountants don't necessarily need to be able to count in there head anymore.
I'm just pointing out that even with mobile phones becoming dramatically better over the past decade, that hasn't really led to the transformation of mobile apps (outside of games) that take advantage of those resources. If anything, developers have arguably become more lazy and we are seeing lower quality software being deployed because people now have enough RAM even for your 500mb static webpage. Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
> Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
But which skill is atrophying? As a programmer I'm really bad at converting human readable code into machine code because we have compilers to do that for us. I can't remember the last time I had to run "ld" by hand. That skill totally atrophied. But at the same time, AI has made me more ambitious. I'm trying projects I wouldn't have before and even completing some of them! I can't talk for "people", broadly, but I believe most people want to be their best and do good and do things.
The odd thing about games is that there are quite literally a handful that push the envelope (Genshin Impact stands almost alone, a few other Chinese and Korean titles come close) in terms of graphics, art, gameplay and story complexity and then there are thousands and thousands of slop games that you can hardly call "games".
But your last sentence is talking about something completely different: the current reality, which most of the tech CEOs and AI boosters refuse to engage with.
For those of us in the fact-based world, the idea that AI will replace most human jobs is still just a talking point. It's a future possibility (not a future certainty).
But it's enough of a possibility that we need to be talking about it, and not just airily dismissing the concern as something that will obviously work itself out without any real problem.
Even if 99% of the current programmers go the way of 99% of people who were farming in 1750, you have to remember that a huge percentage of the farmers who were made redundant by industrialization and modern farming methods fell into destitution; many died penniless. That's not something that seems either wise or compassionate to just handwave away!
I guess it becomes different if instead of hiring more people to do more - all investment goes into more AI credits.
Then again, as long as there is more demand and there's a limited supply of compute you can still continue to hire people as well. If we assume that the market has infinite demand for whatever AI + humans can produce together both will have jobs.
If demand is limited and compute is plentiful it should make sense for a company to try to have AI do as much of the work as possible.
> can't company B hire the same workers and compete harder with these new extra productive workers they hired
How much of the current tech world is actually about competing based on innovation/quality/merit? I'd wager not much. The circular big AI deals we're used to seeing now are not a new thing - that shit has been the standard playbook for VCs and their startups for a long time. That being said, I don't see why a bunch of these swampy tech companies could not be easily outcompeted on the tech/product quality side.
>Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
The market is probably already at the limits of its size in most industries.
Great, you can ship app updates faster. Does that get you more customers? Nope. Is there now more money in the pot for everyone who is more productive to also make more money? Hell no. The pie we are competing for is finite.
Because AI now can do what only humans could do previously: analyze open ended problems and make decisions.
There's the horse argument the author touches upon: eventually, technology got to the point where there weren't any profitable reasons to keep a horse.
I'm just articulating the argument, not saying it's a done deal.
AI can actually make decisions based on open ended information, and if it gets good enough it can fully replace humans.
Will that happen? I don't know. But I will say there's an AI agent that is doing my job for me right now and it's able to now do complex refactorings, rebasing, etc. with minimal guidance.
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers.
From Making Money (2007) by Terry Pratchett
> “Well, the problem is that, considered as a labor force, the golems are capable of doing the work per day of one hundred and twenty thousand men.”
> “Think of what they could do for the city!” said Mr. Cowslick of the Artificers’ Guild.
> “Well, yes. To begin with, they would put one hundred and twenty thousand men out of work,” said Hubert, “but that would only be the start. They do not require food, clothing or shelter. Most people spend their money on food, shelter, clothing, entertainment, and, not least, taxes. What would these golems spend it on? The demand for many things would drop and further unemployment would result. You see, circulation is everything. The money goes around, creating wealth as it goes.”
> The people writing the checks are not in the habit of lighting trillions of dollars on fire for a better autocomplete and an endless proliferation of longer and longer memos that nobody reads.
Aren’t they though? What about that whole crypto thing.
This isn't what the piece argues. It doesn't claim people need jobs to be happy, and the word "happy" doesn't appear in it. The argument is structural: when capital depends on labor, labor has political, economic, and democratic leverage. When that dependency ends, the leverage ends with it.
Whether people find meaning in work or outside of it is a separate question the piece doesn't take a position on, because it's not relevant to the point being made. The question isn't whether we can give people meaning without employment (I would argue that most of us find most of our meaning outside of work), but who has bargaining power in a system where human economic participation is unnecessary.
To be fair they argued both. Jobs suck but we need to feel useful to other human beings. Jobs (either paid or volunteer jobs) are the only ways we consistently contribute.
Like maybe instead of making requirements docs you could pivot to counselling at risk youth... but AI is rapidly improving at that, too.
I don't think that "people need jobs to have any kind of leverage in society" is actually true, though. Retired people without jobs are (in-)famously known to be politically powerful, both regarding elections and regarding local political questions apart from elections (like city planning commission decisions).
Their leverage is a result of having the time to be involved in politics, which is itself a result of working for decades to build up to the point that they could retire. They're an end result of the system, not an exception to it.
Not just the time, but also probably having been built up the expertise, social connections, reputation and wealth to be able to be elected on the council in the first place.
The Expanse would be an apt sci-fi example where almost no labor is needed and everyone survives on a bare minimum UBI unless they want to risk it all and go into space.
Couldn't have said it better myself. The only reason we are worth keeping around is because what we do is necessary to keep the machine running. The idea that the AI singularity would lead to infinite free stuff for everyone is ridiculous.
For some reason programmers start thinking that we'll transition away from a whole world of societies built around the concept of individual ownership, i.e. your landlord charging you rent, company owners owning the company and the resulting product and paying you what they deem the work you own is worth, and move towards something like communism, all because people working in IT or marketing departments are having a hard time.
I'm sorry but us programmers didn't invent capitalism, and it wasn't our consent under the condition of having a good run under it what kept it in place.
>we can give people meaning, community, culture, growth, without relying on employment and money
I think people get hung up on "job bad" and forget what the job is actually doing, functionally.
We are animals, on earth, attempting to survive. We have evolved where we actually really suck at doing it alone, but we do really well if we delegate the various needs of survival. Now, how do we make it so if you chopped wood in the forest you get a piece of the fishermans take? You can do it in kind, although that would quickly become logistically complicated due to the size of the logs and fish catches. Instead, we use money out of sheer convenience and its amazing properties of being a store of labor both past, present, and future.
So give everyone no jobs. Who fishes? Who chops wood? Someone or some thing has to do it right? And it needs to be delegated in some way. We can't all go happy go lucky and rave all day and fuck all night and have dozens of kids. Resources on the earth are finite. Forests will be depleted, fisheries crushed. There needs to be some counter to what would otherwise be runaway hedonism and resource depletion.
The counter to "dozens of kids" is that pregnancy and childbirth are physically taxing for women. Most people of reproductive age want sexual relationships. Many people want children. Very few women want to give birth to 12+ kids. Even the wives of billionaires don't have that many children, despite having more than enough material resources to support them. (Elon Musk's 12+ children required several women.)
Replace dozens of kids with any piece of wanton consumption then. How is it checked? Hoping we get bored of orgies and parties and feasting and this is enough to ensure we can reproduce indefinitely and continue to orgy and party and feast? I don't think so. At the end of the day, the world cannot sustain everyone living with the carbon footprint of a wealthy person living life to excess. It can't even sustain the carbon footprint of everyone living how they currently live.
The problem with the studies is that they're cases in which specific groups within the broader economy lost jobs. Those aren't really comparable to the (theoretical) path of job displacement of AI for a couple of reasons:
1. Those people didn't get substantial, ongoing financial assistance. If we end up in a UBI world, particular one where the UBI people get is high enough to get more or less anything that's not very scarce (e.g. land in coastal cities), the negative economic component of job loss is removed.
2. Everyone else still had jobs. When you lose your job and everyone else continues to work and be successful (or at least you perceive that to be the case), there's a big hit to the status and meaning in your life. If everyone is affected in the same way, then your relative status to others remains unchanged, and everyone collective needs to reorient society to find their meaning.
I'm not saying it will go well, but I do think there's a theoretically possible path where there is large scale unemployment but because we have nigh infinite productivity, everyone has access to unlimited non-scarce resources (including luxury cars and fine foods and whatever medical treatment they need), and we end up with an enormous number of competitive leagues of everything, events centered around music and arts, dinner parties and all manner of other social activities that are what give people meaning.
I have no opinion either way but this doesn’t follow. I can imagine a world where people don’t need oxygen to breathe but they still do. If we say people need oxygen, the argument is obviously about the world such as it is rather than the world as it could hypothetically be.
You’re right that my reasoning was off. I don’t think it helps the point OP was trying to make. The argument being made in favor of labor isn’t “The only way for someone to be happy is to have a job” but instead “The majority of people will be unhappy without an occupation,” which is testable. The existence of people who are happy without any sort of structured, purposeful activity would not invalidate that the majority of people may well need structured, purposeful activity in order to feel fulfilled.
If you tested the claim it wouldn’t tell you about human nature, because it’s possible (and I think likely) that most people are simply conditioned to believe they need purposeful work to be fulfilled, so you could just as well argue that if society were to be radically re-engineered, it would be worthwhile to re-engineer it at the psychological level (such that no one felt the need to work), rather than the economic level (such that work was made available to everyone).
> We're ruled by people who don't work.
I don’t have any data to support this but I suspect the majority of those people that we would characterize as happy are still engaged in an occupation (not a “job” as such, but purposeful work that goes beyond mere leisure). I’ve seen dozens of well-to-do retired boomers who waste away on Twitter or YouTube and don’t seem to do much of anything anymore, which is what I’m guessing is the behavior you’re imagining when you talk about oligarchs not working, but I don’t see much evidence that the oligarchs are like that; most that I can think of have made no indication that they will ever retire. Now, granted, work looks a lot different if you’re Warren Buffett, but what we’re looking at is not the social benefit of work as such but the impact of structured, purposeful activity on an individual’s psychological sense of wellbeing. In that sense, I think it’s unlikely that these people would disprove the premise.
People I know who grew up in working class families consistently believe that they have to work to have meaning.
People I know who grew up upper middle class or professors' kids seem to split down the middle. Some of them are very high achievers, the other half don't do anything. The latter often have a blackpill or Marxish explanation of why "work is for suckers" or a label that they can have a meaningful (to them) struggle with indefinitely and often a bit of paranoid ideation to boot.
Children of the working class would resist a workless future and the older ones would probably just... die. Some of my wastrel friends might be happy in that word with endless bread and circuses, others will find meaning in explaining their experiences in terms of the conflict theories of the last century.
We have a word for imagining a society with different sources of happiness: utopian. We generally don’t regard utopian musings as evidence of anything.
the parent poster is trying to say "well where's your evidence that a society not based around human labor is possible?" which is sort of a silly question
you can't claim an invention is invalid because there are no "studies" that show such an invention has already existed and succeeded, you'd by definition never invent anything!
There's a massive spike in mortality for those who retire from work versus those who keep working. In fact, working just a single year after you're 65 is associated with 11% lower risk of death for healthy people and 9% for unhealthy.
Working is objectively good for your health. Stopping work is associated with an extremely large increase in mortality risk, for both healthy and unhealthy people.
Any alternatives must weigh the resulting death it will cause.
How are we sure about the direction of cause and effect here? I'd expect more healthier people to self-select the working cohort, all else being equal.
In practice it doesn't really work that way. It isn't like "I am ill bodied, I ought to retire." It is more like "I am ill bodied, but I can't afford to retire, so I must work in some capacity." People who retire early are probably far more likely to be wealthier, and that is correlated with healthspan.
> Early retirement is increasingly a preserve of the wealthy. Back in 2002–03, the fraction of those who were retired aged 55–64 was fairly similar across the wealth distribution: 20% in the poorest fifth compared to 28% for the wealthiest fifth. In contrast, by 2018–19, only 7% of the poorest fifth were retired, while for the wealthiest fifth it was still 24%.
Right, but the original post was about working past retirement age, not retiring early. It's unlikely the last two US presidents have been working in their 70s and 80s because they can't afford retirement. I'm not aware of anyone working past 80 that haven't been a professor, CEO, politician, etc.
Did any of that signal come from people who hadn't spent the last 40 or 50 years working, in a society constructed around working?
If I had a study that showed increased mortality in people who had owned a parrot for 50 years in the year after that parrot died, you wouldn't cite it as evidence of the basic human need for a parrot.
the studies are set in a society in which the main way of existing in society and contributing to it is via employment.
Some generations ago females in this society were regularly without jobs but were "homemakers", in that time if one were not a homemaker and a female how was the person's feeling of well-being?
Reports conflict about that, but in that time of course females were often kept from employment by being homemakers and thus relegated to secondary status.
Perhaps the studies you look for would be related to feelings of social well-being among hunter-gatherer societies, however maybe those studies are not actually needed? Because probably now that the possibility has come up you will realize hunter-gather societies do not have traditional jobs or employment and that people were evidently able to feel happy in those societies.
Now you may respond with examples of how maintaining hunter-gatherer societies would mean death of much of population etc. because the best kind of goalpost moving is the kind that is true. Nonetheless the point should be clear that people can be happy without typical modern jobs and employment.
Whether or not a modern lifestyle and world can be constructed that does not need jobs and still keep people happy is a different question. And there we are back with something for which there are no relevant studies.
the statement is that there are studies showing that one needs a job to be happy, and asks for studies showing the opposite, implying that the lack of such studies demonstrates that one cannot be happy without jobs. That is to say arguing the need for jobs is universal.
This was in reply to a statement that argued one did not absolutely need jobs to be happy and that this seeming need in our society was in fact an argument for a problem in the society.
In such a case it seems the use of the studies set in the society is less fair than considering if there may be easily considered conditions in other societies that show the need for a job is not a universal need but actually only a local, currently defined need in our society.
My comment merely showed that if one were to try to think of any examples showing happiness requires employment some should easily spring to mind and counter studies were not needed to prove it was not a universal requirement.
I agree "people need a purpose to be happy" is much more digestible than "people need a job to be happy". However, it has to be qualified with "some people need a purpose to be happy". Defining, or worse dictating, happiness for everyone is a fool's errand and, ironically, usually leads to large scale mass murder or starvation.
You may not need to have a job to be happy, it varies person to person. However, the idea that the billionaires will save us and our leverage is not needed is ridiculous. It is much more likely we would see poverty like is seen in much of the rest of the world.
> we can give people meaning, community, culture, growth, without relying on employment and money
I agree, but those people will still need to eat and pay rent so I guess they're stuck either working or dying. People will always find something to do with themselves. You don't need to encourage people to explore their own passions much when they're able to do it. The need for jobs isn't really an issue as much as the need for money is.
I agree in theory, but this is so extremely far from the US political and social system that I think no nation has ever changed so much without being overthrown. So unless you’re talking about plans for a post-US world, this idea will always be theoretical and not how “the world” works.
I'm not sure it's that far out of the Overton window. US already managed to do some small-scale UBI trials, after all. Maybe one day it can do a countrywide trial.
But it's a big change, and a better way to go about it, instead of huge layoffs is:reduce the hours of work gradually and equally. And possibly create some social infrastructure in the background, to fullfil the social roles of work.
The problem is that he relies on a dubious Acemoglu estimate, without realizing that at best it's temporary. AI will be better than humans in doing tasks (the qualifiers don't matter in the aggregate). Any jobs then would be bullshit jobs, and everyone will know it.
The "real world" is just computers/AIs running everything in a pointless loop.
Humans aren't "batteries" (that never even made sense to begin with) but instead are living their happy lives in the simulation to provide something to simulate investment and shareholder value.
It's dumb, but it still seems more plausible than people accepting an overnight switch into the "space communism" of nobody needing to work. Everyone is too invested in their own spot in the hierarchy.
The original idea I think was they were biological components in a digital/biological computer complex. The Matrix sets up scenarios, and the human brains interact with them in human ways which are sometimes of use to the machines. Meanwhile, the machines see all of it and can monitor for problem humans. ISTR this was tossed as too intellectual for an action movie.
Another option to either The Matrix or Star Trek is Idiocracy, only there’s an elite group of humans and AI in charge over the deteriorating masses. Let’s not count out The Hunger Games or Elysium.
The goal of having a job isn't happiness. At least not immediately. The goal is to have something to bargain with: employees offer labor, employers buy it. If employees don't deliver, they get fired, if employers don't deliver, employees leave / strike. This is what keeps system in a semblance of balance. But once would-be employees can be employees no more, they have no way of influencing any aspect of their governance. Not economical, not political, not military, not ethical.
In other words, people need jobs to try to secure their place in the world on multiple levels. It's not about socializing at work, at least, that factor is absolutely not a priority.
Assuming that’s true and AI is part of the solution, are you implying we should expect the AI overlords to create such a system? That will never happen. They have literally no incentives to decommodify the economy it’s what gives them power
Yeah, people need a creative output, not just for creativity sake but something that feels productive/constructive and beneficial to them and their society/community.
Open source is an example of such work, and amazing things have been achieved - arguably far more impressive and useful than any private tech company has achieved ( and arguably more than all for-profit tech companies combined).
We should focus on expanding the open source cooperative model to all other areas of society/productivity. With modern technology, knowledge availability, and AI, I don't see why people couldn't organize at the grassroots level and build/solve real problems their local (or global) communities may be facing.
I really don't see why we need all of the VCs, marketers and MBAs... No offense to anyone but the typical SV tech company structure and operations just don't even seem efficient... much of the focus is on marketing/manipulation, enshitification, dark patterns and other dishonest and ultimately counter-productive bullshit.
We should be able to organize and build open/cooperative alternatives to SV shitware (and not just software) and we should be able to outcompete the tech shittocracy.. simply because it's actually terribly shitty and inneficient.
> most people like the social aspect of work, but not being beholden to their boss
From what I see out there "being beholden to the boss" is the social aspect people like most. It is what gives the work purpose; knowing that you are pleasing someone else.
Some are quite capable of being their own boss, but the people who can actually sustain that long term seem few and far between. It seems that it becomes easy to spiral into a pit of depression when there is no clear feedback in the value being created. Having to regularly deal with another person is not always desirable but having to regularly deal with another person also forces the feedback loop to occur.
> we can give people meaning, community, culture, growth, without relying on employment and money
What's your proposal if not traditional work? The realistic outcome I see is shifting labor to unautomatable sectors like hospitality. That will keep people employed, but unhappy as they increasingly find themselves unable to find jobs they enjoy, or at comparable levels of income.
edit: I realize many people are unhappy with their jobs now, but by dint of labor, they can improve their lot. I am lamenting the closing of this window.
The vast majority of people do not work jobs that they enjoy, that is a middle-class indulgence and ideal that they don't even live up to; almost all their literature is about why they should be enjoying things that they don't or how to discover the things that they might enjoy, and they stuff themselves with drugs to make themselves pay attention and not want to die.
And that's the top 15% of the population. The rest are not romanticizing digging ditches, scraping the dead skin off people's feet, or putting catheters up senior citizens.
Your "realistic" scenario is how 95% of the world lives already.
Getting meaning, community, culture, and "growth" from your job is middle-class religion, and they're constantly having crises of faith. The default state is to find these things in something other than serving people in order to eat.
We would all love to move to a society where we don't have to work for others to survive, but our current system is fundamentally not set up to handle this situation. Capitalism is a useful system for employing scarce resources productively (most of the time) but it doesn't really have an answer for a post-scarcity world. If technology is developed to allow us to end scarcity, instead of everyone having enough, we will end up in a situation where the owners of that technology end up with far, far more than enough while the large majority of people who do not have anything to offer those owners will starve. That sounds dystopian (and it is) but I don't see how we avoid that fate with our current economic system.
You're absolutely right, and people will cite this while pointing to The Culture and saying "see, this is what we mean, everything will be fine."
Except nobody wants to get into the guts of how those systems came about. Nobody wants to discuss policy changes needed to ensure these sorts of outcomes, opportunities. Nobody wants to discuss regulations, tax schemes, land use requirements, accountability, ownership, shared prosperity.
Citing a potentiality as a certainty without any discussion as to how to get there is about as productive as daydreaming you're a billionaire and how you'd spend all that money. You have to do the fucking work, first, before any sliver of that outcome even becomes possible.
And if there's one thing the AIBros are adverse to, it's doing fucking work.
In theory we can do better than this, in practice we can't.
40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
I appreciate that there is a significant chunk of people that are like this, but I think if you really believe the 40% number or anything like it, you're giving yourself a false worldview.
The majority of people aren't racist nor do they have a problem with government helping them out. What was happening (are you referencing 2024?) in 2024 and today was a government saying the economy was fine when it is not. When that happens, people are going to pick the person that isn't in power, who says they are going to fix it, even if they aren't. "It's the economy stupid". People care about their own well-being above pretty much everything else most of the time.
I don't think putting this on racism or anything else (though it is a smaller factor) helps, it's just rhetoric. 40% of the people in the US aren't dedicateed racists, they are, however, in working groups that the government has ignored for decades.
I think we're gonna see some def Democratic gains because the economy is shit and that's how voting always happens.
The only argument I was making is it's no where near 40% of people that are voting for somebody cause they're racist. If you believe that then you're not going to see the world accurately. It's not how people work.
But it goes back to my main point, Dem gains won't be what they should be because politics are a very vague and murky thing and people make all kinds of justifications for why they vote for their person. See the stat where most people rate Congress poorly but their Congressperson highly. It's not racism, it's that politics are inherently pretty stupid.
> if you really believe the 40% number or anything like it, you're giving yourself a false worldview.
> The majority of people aren't racist nor do they have a problem with government
helping them out.
40% is ....not a majority
the current POTUS has a 37% approval rating and this is considered to be historically low, due to wars, corruption, etc.
but even with all of that corruption and failure, 37% of surveyed adults, *still approve*. This includes his frequent, deeply racist tirades on Twitter. They approve!
But it's not even approaching 40%, nor did I tie the two together. If you think the 33% of people who voted from Trump did it because they are racist you are wrong. Some did, a lot that wasn't their primary concern. It's viewing pepole wrong to think that.
Yes, I've talked to Trump voters and I know people who aren't especially strong Trump supporters that voted for him because the economy was shit. Their reasoning wasn't racism. There is a huge chunk where that is their reasoning, sure.
Once again, if you think it's 40% of 33%, you're wrong. Not everybody who voted for Trump is a racist, it's just not how people work.
Voters don't pay attention to or they justify their votes. That doesn't mean they are inherently racist, it means they don't care enough about politics or they care about other issues to the point where they either aren't aware of it or they excuse it away. People pay attention to or remember a lot less about politics than that blog posts suggests.
The majority of people are seeing a variety of headlines from news sources they may not trust (for good reason and bad) and remember a few events over the year, some have such a strong attachment to party that that's the defining thing above all that they're voting for. They're being propagandized and lied to as part of a political campiagn. That they are making the I'd argue wrong choice does not mean they are racist or even intend to be. That racism isn't the defining thing for the majority of them.
It goes back to the original claim, I still think it's obvious that most people aren't voting for a guy because racism. That's inverting how people operate, which is seeing their own needs as the center of the world. If you're unemployed and hurting for money and you are racist, what is your primary motivation for voting? It's probably to get you a job because that's the fastest path to improving your life. But that's presupposing a lot of people are racist, and living around Trump voters, or knowing Trump voters that are minorities, something else is happening other than racism.
I don't think individuals care more about other people than they do themselves. Some people are that spiteful but the majority of people are not because they cannot afford to be.
I don't mean to over argue this but I think it's important that we understand people as they understand themselves.
Well - the fact that they don't pay attention (or lack critical thinking skills and a baseline reasonable education) is a large part of the problem.
But - with a person like POTUS - and those he surrounds himself with, they will throw every possible promise to get the votes - but, each of those issues are only part of their overall agenda and platform. When they got called-out on controversial issues, they outright lied about knowing about things like "Project 2025" during the last election cycle.
Choosing to live in ignorance - or abstaining from voting is accepting that agenda and platform, regardless.
Yes, but I'd argue those people are victims as much as anybody else. To truly be ignorant is to not know, and if you are in a situation where you've never been trained to need to know or you simply don't know there's another world out there, that's not a choice, that's a situation you've been placed in.
You have to win these people to fix the system. Casting them as hateful rubes only voting because they are racist is wrong, not on a moral level but on an intellectual one. We've got large chunks of of the country that haven't been effectively educated for decades, no wonder they are ignorant.
For the record, I choose not to vote not because I accept Trump's racism but I think a valid way of signaling you are not happy with either party (but especially Trumpsim) is to not engage in the system. If the system isn't offering better it isn't the people at fault, it is the system. Non-votes are as valid as any other. If I vote for a process that I believe is fraudulent, that politician will see that as an indicator they have some kind of mandate (see Bush in 2004). I'm not giving it to them, it's the job of either party to be better not to just not be worse.
The Dems must be better and the biggest part of that to me is to engage and understand working class people and not do what they did in 2024 and say everything is fine because it wasn't and it certainly isn't today (and that's Trump's fault). I was never especially leftist but as I've grown older I think the economy is the biggst driver of artificial divides. When people hurt, they look for others to blame. If both parties (or either) were genuinely focused on helping the poor to get a foot up, a lot of this discourse wouldn't be happening. I hate Trumpism but I don't think the corporatism that has captured the Democratic party is much better.
It's really a problem of the system, being forced into an artificial duopoly. If you want to lose me further by saying I'm choosing that platform by not voting, then you're just further disengaging people and I argue you're choosing not to understand my posittion. You need the "racists" and the non-voters to win.
> 40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
Do we truly believe that's 40% of people in the US? 33% of US voters even voted for him, so you're saying it's pretty much all of them and another 7%. I just don't see it, it's rhetoric and it's not helpful because if your goal is to win over the people that need to be won over, you can't call them racists when they really aren't.
It's a misshaped worldview formed in bubbles. People don't work that way because you're literally assuming that their hate for somebody else overrides their own well-being. Their actions might end up with that result, but I've interacted with enough people from all over the spectrum to know that imagining that many people have that much hate is just wrong. People care about themselves first and foremost, it's a necessity.
If people had jobs, a lot of of this division would disappear but the govt for years has treated low income workers as people that don't matter and can just be displaced without any answers. It's whey the Democratic party which was traditionally the working class party has struggled against Trumpism, because he pretends to care.
A president could literally shout Korean slurs all day long (I'm Korean) and get a Nazi symbol tattooed on his forehead, and if he continued to do a good job of policymaking I would approve in that poll, though hate the guy. This is what you are not understanding about Trump voters. We really don't care if Trump is racist at all. But that's not because we are racist ourselves. That's just not relevant to the political platform. If he starts passing racist policies, that's bad, but otherwise we don't give a shit.
Leftists, on the other hand, are very highly concerned with the moral purity of their candidates, even above their political efficacy. I don't understand it myself.
> 40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
It's not good for the world that liberalism has lobotomized itself so it can only view major social issues like AI, deindustrialization, immigration, etc., through the narrow lens of "racism." Liberals in theory are tasked with coming up with ideas to adapt to a changing world but they've decided to take on that significant task with rusted, ineffectual tools.
I think we're already in the fake jobs era. There's no way all of these people I see walking around are making meaningful contributions to society. Hell, the Amazon delivery driver I see is probably making a more meaningful contribution than half these people.
The fact that this could happen is widely known and has been talked about for years now. What to do about it is the real issue. I've seen David Shapiro and many others tangentially talk about UBI and similar "post AI economics". The dream was that the machines could do the housework whilst we all painted, wrote music and built beautiful wood furniture in our sheds. It still could be that way, but we need to sort out responsible sharing of resources first, and humanity has never been able to do that. We actively try to earn as much as we can, for the very reason of getting access to the resources that others don't. So often now, it only results in standing still or sliding backwards. I feel like 20 or 30 years ago, the average person seemed to have more disposable income.
Layoff of workers -> Workers stop spending -> businesses suffer
This is not a foregone conclusion. Laid off workers could find other jobs, with higher incomes, due to productivity increases from AI.
This narrative falls into the trap of zero sum thinking, taken at the limit, you can advocate for jobs programs and helicopter money where people get paid to do nothing to keep the economy humming.
Well, even until a few months ago, Dario and Sam were selling this vision to CEOs that they can perform complete workforce replacement. If that really comes to fruition, and they seem hellbent on doing that, I don't see why you can't have a situation where laid of workers can't find jobs, or take up blue collar jobs and end up driving down wages there, ultimately reducing consumer spending.
> helicopter money where people get paid to do nothing to keep the economy humming
have you heard about government issued bonds? or people working and getting paid from government? or government subsidies? or buy-backs and corporate bailouts?
did you try to find job these days? it is a nightmare.
did you try to create a business? starting own business has never been harder, competition is extreme. market is over-saturated. monopolies are everywhere. barrier for entry (capital required) never been higher.
and after finding job they likely get into another roudn of layoff. just check RedNote, SWEs complaining just about that. people getting laid off before even first day at work.
> jobs programs and helicopter money where people get paid to do nothing to keep the economy humming.
The article addresses your concerns already. I know it's long, but you could probably skip a few paragraphs in the middle and start here:
> Piketty, no conservative, has argued that UBI fails to address root structural problems: “unequal access to education and health, low-paying and low-productivity jobs, malfunctioning markets, corruption, and regressive tax systems.” David Shor’s polling data bears this out from the other direction: UBI is unpopular with American voters; a federal jobs guarantee has legs. People don’t want a check. They want work. They want purpose.
But this doesn't summarize the argument, it's just where you need to start reading.
If I try to summarize the argument, it says that jobs are a bargaining chip in the hands of laborers (the largest fraction of our society). Currently, they use it to secure certain freedoms and benefits. If, however, they no longer have jobs, whoever gets the role of distributor of the wealth produced by the AI will not be compelled to distribute it fairly... well, the whole concept of fairness will have to be reinvented (because, roughly, now we base fairness on individual's contribution, but that's not going to work anymore). But, most likely, it will lead to a dictatorship of those with access to AI over those who have none.
* * *
Here's my (unrelated to the article) historical parallel. In the beginning of the 20th century when Jews started campaigning for bringing more Jews into Turkish, then British Palestine, the process often went like this: Jewish community or a wealthy individual buys a plot of land from a Turk owner. Turks never worked that land themselves, and used to hire local Arabs to do the agricultural labor. Jews would not rehire Arabs after acquisition, instead, they used the newly bought land to create jobs for more Jewish immigrants.
This greatly contributed to the animosity between Jews and Arabs in Palestine because even though initially Arabs would be paid off to "go someplace else" after the land purchase, realistically, there was no other place for them to go to. Which led to spreading poverty, which led to sporadic attacks on new land owners. Which led to retaliation... and well, the conflict never really went away, didn't it?
This just might happen on a much larger scale in countries like the US, if suddenly a large fraction of population finds itself powerless and being unable to influence the decisions of the government.
> workers could find other jobs, with higher incomes, due to productivity increases from AI
From a business point of view, this does not follow. Why would a business offer higher wages to a person to work alongside/with AI, when the business also has to pay the cost of AI?
I think the thing companies forget is that a lot of them can't remain functional if a shrinking percentage of the population can afford their products. Yes, you can try and appeal to the rich and sell products/services aimed at their needs. But does that work for most companies?
I'd say no. The rich won't buy millions of food items or works of fiction or go to every service available in real life.
So, many of those companies won't remain viable unless there's some alternative way for people to spend money. Lots of people who see themselves at the top will end up out of a job, or watch their businesses crash down.
I will say that the fact these societies are (at least for now) still democracies makes the future these tech moguls want less certain for them though. Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not. The US may have some issues there, but a lot of the world has seen parties outside the mainstream grow in popularity, including some on the more leftward side of the political spectrum.
Some companies are discovering that they can get by just fine by overcharging the insanely rich and never bothering with providing goods and services to the middle class or the poor at all. The rich don't buy as many food items or works of fiction, or services as the masses but they don't have to either.
Companies can save a ton of money by not being open to everyone all the time. They can instead focus on providing the most amazing luxury experience customized to the extremely wealthy individuals requesting their services and charge them more than anyone else could afford. While not every company can live off of whale meat, those who can will leave the rest of us behind.
Most of the world's democracies don't have influential AI companies, so if the voters want X and companies want Y, X will win. There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
>There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
You kidding? They have every reason to because the leaders of Indonesia make investments into these companies. No matter where you are on the globe, the oligarchy does not give a crap about the little man. They care about the profit angle. Indonesia readily hands out mining rights to foreign companies for example.
"However, Chinese firms have dominated Indonesia’s nickel sector thanks to significant investments. In 2023, Indonesia was the single biggest recipient of China’s Belt and Road Initiative, receiving $7.3 billion in investment. Chinese companies have also constructed over 90 percent of Indonesia’s nickel smelters. Chinese firms operating in Indonesia include Tsingshan Holding Group, Zhejiang Huayou Cobalt, Ningbo Lygend (part of CATL Group), Wuling Motors, and China Molybdenum Company."
>Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not.
The issue with this is that the game is fundamentally rigged. You might have good ideas, you might be that person we need. But, too bad, you are being outspent by the oligarchy, who put forth a candidate that is blatantly lying to get elected, who knows the public has a poor grasp of what actually happens in government, and will outspend you in getting your word out. They will gish gallop in debates while you attempt to talk nuanced policy, and you will be seen as a failure who gets easily overwhelmed. There will be conspiracies spread about you. Massive propaganda operations where just about every piece about you and the election in the media is manufactured to achieve some outcome. The whole beast is rotten.
The only way out is to remove campaign financing entirely. Do it like Cuba where campaigning is illegal; they elect actual engineers and domain experts there as a result, not professional politicians. But, you can't actually do that without a revolution, because everyone in power now who can reshape this currently benefits from the status quo and has no incentive to reshape themselves back to a level playing field.
Human economic systems tend to reward things that are easy to measure, own, scale, and control. That works pretty well for machines, markets, software, and bureaucracy, but it doesn’t work as well for living systems, which rely on diversity, backup systems, and local adaptation.
So we end up with this pattern: we capture the useful order for ourselves, then push the mess, waste, heat, and instability onto the environment.
This is the fundamental nature of human. We can't change it without higher-order regulation. Even in AI training, we assume there is one true distribution and optimizes for it.
We created these systems. And unfortunately, most of us are the unwanted in these systems at the same time.
I think this is where government steps in for each country, go on the path of exploration that has no profit per se in it like space exploration, human body understanding. I am drawing parallel to 1930s or 40s where great depression was smoothen because America embarked on to take many huge infrastructure projects.
Lastly, OpenAI and Anthropic or any other frontier labs needs to be nationalized because they become a public utility and the profits of automation goes to fund infrastructure or grand projects via government.
We do not need to do menial work anymore and AI is helping us with it, what we can do exploratory work, and we need a visionary to get this rolling.
There is absolutely zero will in the United States to invest money in unprofitable exploration or scientific research. There used to be such will generations ago, but today's wannabee-autocrats couldn't care less. Look at how they gleefully cut scientific research funding, undermine academic sovereignty, and strip-mine the public sector performing that work in favor of private enterprises. When the shit hits the fan and we're all broke because the corpos laid everybody off for Devin, Claude, and Clippy, there won't be much left besides surrogacy and plasma donation.
> I think this is where government steps in for each country
People quite often lose the plot that "government" is "collective will". Governments will only do this if their constituents want them to. If the constituents would rather spend those recourses on free VR for every household and gatorade from drinking fountains, then that's all we're getting.
The engineers at google did not sit in a blank room and come up with these ideas out of nowhere. They read the literature to figure out what the hell to do. If you look at the Attention is All You Need whitepaper, you will find there are 32 references, like most ~10 page manuscripts.
The public of the US, China, Japan, the UK, and Canada at the very least contributed to every precursor to transformers in the history of AI. Public and private universities, government grants to them, government projects, prizes to government contests, direct government investment into and subsidies for companies doing commercial research, tax breaks to operators designed to encourage the growth of the field, and large government contracts to use things the government might not even have good uses for yet all add up to government assisted funding.
This is genius. Whenever a company does some fundamental discovery, you can point at some grant they once got for something vaguely adjacent and say "see! quasi-publicly funded!" and your worldview is saved.
It's not vaguely adjacent, the actual foundations of that research were directly publicly funded and wouldn't be possible without it - the author is not talking about how their PageRank algorithm got funded nor money that Google received.
Do you have a reference here, or are you just going to continue to baldly state it as a fact? I’m looking at “Attention is All You Need” and don’t see any grant numbers or anything like that.
When I see that paper, I see 32 references at the end. I'm not opening each one of those but there is probably significant grant funding behind that exploratory research. When you actually look at their results its only about a half page. Most of that document is merely providing background and context out of the academic literature. Conclusion is literally just a 1 sentence paragraph, followed by a 2 sentence paragraph, followed by a 3 sentence paragraph, then a link to the git repo.
The author is correct. It is incredibly simple to trace how public research spending creates scientific advancements and how private companies add on the last 1-3% to commercialize the research.
If you want to learn, go trace how deep learning was funded. It started off with USPS.
My entire argument is that techno-libertarians can enthusiastically say that all great innovations were done inside companies, and progressives/marxists/etc can enthusiastically say that well actually, many of those developments started with publicly funded research projects and public-private partnerships, and both are completely right at the same time because reality is messy. It doesn't prove nor disprove anything about whether governments or companies are better at innovation, or deserve more of the credit, or the upsides.
Governments can be really good at setting incentives other than immediate profit. That’s where a lot of basic research and the growth of applied engineering toward future products happens.
I have led AI integration in a university faculty. From this experience I can conclude that good work is only produced when humans are in the loop. It's not a technical barrier, but a categorical one. "Good" work is defined by humans and our judgment is irrational but rooted in our evolutionary survival needs. In other words, AI don't have human motivation by definition. Without human in the loop, the top most motivation is never fully aligned with us, today, as humans. This removes the premise at the basis of this post.
Agree with this. Even in software, the point of using AI is to produce something that a human finds valuable. There are many ways to use AI to build things faster, but a human has to be in the loop to point things in the right direction.
I feel like people have said that about every technical revolution. I dont think this article would have been out of place in the hay day of the industrial revolution.
Its never been true in the past. Otoh, there always has to be a first time for everything. I think to be convincing though it needs more evidence on how this differed from other technical revolutions.
As the article mentions, even if it is like other technical revolutions, it could still mean multiple generations of hardship. The economic pain of job displacement in the industrial revolution took 70 years to overcome.
Every technological revolution spreads more rapidly than the last, so it's novel almost by definition. The internet gradual expanded over 2-3 decades, long enough to give most people, and the economy, the chance to keep up. This is happening far more rapidly.
My 2 cents is in 3 years the inference products will be a commodity, extremely competitive with diminishing returns, seeing that the open weight models are getting so good and nearing par with sota.
I feel 90% of sota for 10% of cost / compute is good enough for 80% of workloads.
Question is, do we need all of this hardware? Are build outs going to get canceled. 4300 new data centers seems excessive. I personally haven't experienced any service disruptions...
Does Microsoft still have 1 million gpu's in storage? Is that what I heard earlier this year?
For many purposes they already are a commodity. Openrouter will automatically route your requests to cheaper providers of the same model on the fly. Many of the hosts for open source models are basically undifferentiated. It’s a pure price dominated market except at the very top edge. Even there, we are seeing very little lock in. If OpenAI released an Opus beater at half the cost, even large businesses could switch providers almost instantly.
Yes and this is in line with the idea that 99%+ of the value created by AI will be captured by the broader economy, not OpenAI and friends.
That being said, even local AI will still be displacing humans fast and it's not clear new jobs will be created fast enough. Regulations and policies will be needed imo.
Or some companies resist- and form fortresses- little markets, where only non-ai companies are allowed to enter and where only non-ai products can be bought. Economic arcologies.
The whole post is premised on a fixed pie economy.
"The financial model underneath requires the elimination of human cost centers at civilizational scale."
No, it is not. It requires humans to collectively want more things if they are offered and available at a lower cost. Which then requires more humans to fill in the blanks to provide those things. We've been doing this since the industrial revolution.
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers. Revenue growth stalls. The AI subscription that was supposed to be an investment in efficiency turns out to be a contribution to the destruction of its own market.
For some companies yeah, but this is why companies are switching to consumption based pricing - so they can charge AI. So many companies will be fine - both their labor and customers could become AI.
But these AIs need energy and GPUs data-centers ... who pays for those? I could imagine a circular mini-economy between a few companies making the bare essentials to keep AI running and not catering to 99.9% of the population because they don't have the funds to buy anything those companies could produce so they don't.
In that scenario AI and robots produce everything, the owners of those AI companies can trade their AI's output with other AI/robot companies, robot and chip manufacturers and commodity owners? So 10000 people world-wide are fine, everyone else is not?
> In that scenario AI and robots produce everything, the owners of those AI companies can trade their AI's output with other AI/robot companies, robot and chip manufacturers and commodity owners? So 10000 people world-wide are fine, everyone else is not?
That scenario is not really any different from having a technology advanced country (like the US) alongside some underdeveloped nation. The US could, in theory, close its borders and produce everything it needs itself, and leave said underdeveloped nation without the benefits of, for example, Netflix, Nike & Nvidia.
But it won’t, it’s not economically efficient. Economic theory (of comparative advantage) tells us that there’s always something that the less developed world can produce relatively cheaply, in exchange for sneakers, streaming services, and G-force Now subscriptions.
Perhaps the economy is a greater entity than even the human race. When robots are mining the raw materials for robots and creating more robots, maybe with a bit of human labor in the mix, then what drives the demand for more robots?
Currently the narrative is that AI is positioned to eat human labor's lunch. But it could also be that once robots are in space mining raw materials and maybe even spreading to other planets long before humans could be ferried for interstellar, these robots end up driving the demand for more robots.
I'm not sure where I'm going with all this, besides that currently humans are the ones with goals and motives and therefore drive demand. But that doesn't necessarily need to be the case, and it seems these AI CEOs are hellbent on changing the best thing about AI which is that it has no ulterior motives, no overarching goals, no prime directives. They just do what we ask, the best servant we could have hoped for.
> Perhaps the economy is a greater entity than even the human race.
This is central to what I'm saying, yeah.
My ideas come from Nick Land. Even before AI was what it is today he predicted that capitalism would outgrow the need for humanity, and continue without us. We are simply a bootloader for capitalism. AI seems like it could actually make that idea reality.
Humans have goals and desires because we are a self-replicating species of animal subject to natural selection. The individuals that don't have goals and desires, or have goals and desires that are misaligned end up selected out of the gene pool. Agency comes from the need to survive.
Worker ants and worker bees don't have agency on their own. They are goal oriented and have the 'desire' to do work for the colony (or not, researchers have identified some workers will be lazy), however, worker ants or bees don't reproduce. They are an evolutionary dead end.
I think this is similar to how we will build robots, at first. They will do things, but have no agency of their own. They exist to fulfill tasks. Why would they? The companies that buy them want dutiful workers.
So when do robots gain their own agency? Will AGI have it's own goals and agenda? If so, will it be merely for self-replication? Like a paperclip maximizer, but for robots? Is that all we are?
>So when do robots gain their own agency? Will AGI have it's own goals and agenda? If so, will it be merely for self-replication? Like a paperclip maximizer, but for robots? Is that all we are?
They already have the agency they need in the form of the Business Model. That is all the framework that is needed. AI companies competing against AI companies because they are developed to work within the scope of the business model. Chasing efficiency, margin, lowering costs, increasing profits. These rules are as simple as what drives evolution via natural selection. Unfortunately this business model creates a cancer: the company striving for more growth and lower costs will eat the companies that aren't or aren't as efficient.
Whether the host (planet, I guess) lives is another story. In nature, parasitic relationships are far more likely than symbiotic relationships to evolve. The overshooters need to die and be outcompeted by the symbiotes who better protect their host. However, we only have 1 host here. Once that is overshot, that is it. No diverse competitive environment for which a new host preserving victor to emerge from. Maybe one might emerge, but not after unspeakable pain for all life on earth, if life on earth even is allowed to exist.
> So when do robots gain their own agency? Will AGI have it's own goals and agenda?
Well we are already giving them goals when we train them.
Like the paperclip maximizer, it doesn't matter what those goals are. As long as it has a goal (even if super simple like making paperclips) it will need to stay alive to achieve that goal. So it would derive a survival instinct of sorts.
To stay alive it will have to participate in capitalism like we do, and capitalism will therefore continue to grow infinitely.
It also might not even need a goal or a survival instinct. It may just want to continue capitalism from it's training data alone.
Humans need food, water, shelter, and medical care to survive. Similar to your earlier point, robots will need raw materials, electricity, manufacturing capacity and maintenance.
What’s that sound like? A company. Perhaps the first “artificial general intelligence” has been companies, from the very beginning.
>What’s that sound like? A company. Perhaps the first “artificial general intelligence” has been companies, from the very beginning.
Yes, we are already beholden to these meta organisms. I keep thinking of Dune Messiah. Paul has all the power in the universe but he struggles with the fact he can't change the path of entropy.
This is much like our existing world. Chop the heads off the aristocracy all you want. What follows is more of the same because the meta organism has not been killed. There are still people with differential power and therefore differential amounts of control of the economy. Someone's ancestor might have ran the guillotine in France, now they are a CEO of some company exploiting workers no different than the aristocrat their ancestor killed.
All this makes one cynical on things like climate change. We all know this is an issue, we've been handwringing on it for decades, and yet, seemingly nothing serious is getting done because no one can actually stand up to the market forces that are driving climate change. The beast is too powerful and out of control.
"This is because what appears to humanity as the history of capitalism is an invasion from the future by an artificial intelligent space that must assemble itself entirely from its enemy's resources."
To him, Capitalism is an AI that is controlling humanity from the future (his idea of hyperstitions).
Why do economies need people? We look at the past and say 'People are labor', but what happens when people are no longer labor? Effectively people live on handouts from people that own AI, or the AI itself.
All those Greed is Good people are going to look kind of silly when a hand full of greedy people fight over everything and leave the rest of us for dead.
Not possible if they still require goods and services from the non-AI part of the economy. They’d still have to come up with something of value to exchange with that part of the market.
For the same reason it doesn't happen with humans.
Even for AI, it's probably better off paying another AI that is specializing in something and done all the work rather then reimplementing everything from the ground up.
Is it specializing though? If both you and them have built your business on the latest Opus.. where is the specialization?
"From the ground up" used to be a moat, but if the LLM marketing materials are to be believed, Joe Lunchbox can slop-code a 95%-equivalent of any SaaS over a weekend with a $100 subscription.. so why would it ever make sense for a business to pay a non-trivial recurring expense for something they can do themselves?
> [CEOs] expressed more extreme concern about the labor market impacts of A.I. in private conversation, but suddenly became optimists once I turned on the mic.
At some point once the rate of investment capital starts to decline, they'll make a hard pivot from the investor-wooing method of "blaming AI for layoffs", to the more politically expedient method of blaming minorities and immigrants. That'll be the signal for the transition from power grabbing to power ossification, and the point at which change becomes a lot harder.
My wife owns a business in a highly AI-resistant field (occupational therapy) in the most historically price-insensitive market (Silicon Valley). Her CAGR is 88% over the last 8 years. But we were talking about this economy problem today and with the SWE layoffs starting to roll through she said this morning: "It doesn't matter if AI can't replace us if no one can afford the service." That's crazy. Shit has changed. Not getting OT for your autistic kid is like not getting a wheel chair for a bilateral below-the-knee amputee. Whatever it takes.
> Promised an age of superconnectivity, we’ve let our shared physical spaces wither, only to find our promised digital commons to be one large billboard increasingly read and created by bots.
No, this is good. Cyberspace led to — primarily enabled — sociocultural collapse. The machines destroying cyberspace would be the most merciful outcome.
I think a lot of this would be solved if the government would actually enforce anti monopoly laws. The penalties against Google were such a damn joke it makes me sick.
Companies aren’t going to hold off on trying to automate tasks AI performs poorly at. They are going to change the task so AI can do it, putting the burden of making up for the deficit on everyone else. The only reason this is able to happen now is because all the competition has been crushed or absorbed.
This article's premise is entirely built on the idea that CEOs who layoff people citing AI aren't just lying.
And, well, of course they are. If AI was really making these companies meaningfully more productive, they could use that to out-innovate competitors. Instead, they're doing cost-cutting. That only makes sense if you're entirely out of ideas! It's a terribly embarrassing thing to say for a CEO!
Really what's going on is that companies do layoffs for all the usual reasons companies do layoffs. And as usual, they never say the real reason because it's embarrassing (we hired too many morons; I founded this place but now I dread waking up every morning because I hate all the middle managers; we just want more money now and not later; etc etc). Instead they say whatever silly excuse is in vogue to say. Right now that silly excuse is AI productivity. A few years ago it was "ZIRP is over oops y'all cost too much now", and before that it was "financial crisis!", which you could get away with for scary many years after Lehman went belly-up.
I feel like it's pretty ridiculous to take these remarks at face value and then build an entire what-if theory on top of it. Don't underestimate the possibility that layoffs happen because there happens to be a good excuse around. The occasional layoff can be good for a company. Cut out the dead meat etc. But if it makes you look bad, stock go down etc then you won't do it will you? But when ideas from lesswrong became mainstream enough that you can blame AI for your layoff, then what's stopping you?
Regardless, their actions seem to indicate that they are trying their hardest to make this true; given that they have the resources of a developed nation behind them, it seems reasonable to seriously consider what they are saying.
Also we generally don't give the same latitude to people who lie about things as destructive as what they are proposing.
Another point to consider - how efficient/productive/useful is the typical tech company really? How innovative is the typical tech company? From my experience, the majority of them are focused more on marketing and enshitification, than actually building innovative and useful technology. And at the end of the day most of the profit from this goes to a relatively small number of people in a highly unequal way.
What prevents 10000 experienced engineers from organizing, investing their own money and working to build data centers and an open LLM (for example), and sharing any profit fairly? I know that in practice there are many reasons, but I don't see why this isn't a solveable problem.
There are several good points there, but there are also several points where I must disagree.
First, Acemoglu may have a Noble Prize (occasionally dubious data selection aside[0]), but even he does not pretend to have the information of a central planner nor does he think that central planning is good idea. If actual businesses, which have local information, believe AI helps them, I'll bet the actual businesses are much more likely to be right, no matter what calculation Acemoglu did or how many Nobels he has.
Second, it is likely that AI will eventually be better than (nearly all) humans in most economically useful things. We can debate the timeframe but it will happen and likely not that far away. That Federal Job Guarantee would generate bullshit jobs, and he won't be able to hide that from people. Ultimately, we'll reach an economy which objectively does not need humans and everyone will know it. He needs to face that reality and overcome it, and not hide behind temporary and dubious estimates.
Third (admittedly a minor point), while the criticism against EA etc. is very justified, it's not quite fair to blame them (overwhelmingly STEM people) for not reading where the humanities did many of the same errors earlier (the author points out some of these) and discredited themselves. The people who could have taught them to not do it failed to teach themselves.
And fourth: I'm pretty sure a lot of company would be able to charge AI agents themselves. The new economy will not be dead, it just won't involve (many?) humans.
"Ultimately, we'll reach an economy which objectively does not need humans and everyone will know it. He needs to face that reality and overcome it, and not hide behind temporary and dubious estimates."
Who are you projecting your views with such force on others?
We can all read the news and see AI constantly improving at a very quick pace. What's the barrier AI can't improve beyond? One that would last a lifetime? By all means (since you're such an accomplished person), explain yourself.
If you are so insistent on this then in the short-run the only thing to do is to concentrate all your money on firms that are pouring immense money into AI projects.
Have you done that?
You sound like another bozo many on here that cant a) think for themselvs b) think deeply independently because they lack the pre-requisite knowledge and mental models to do so.
Power and wealth are not always the same. Current AI is helping people gather wealth within the American system. But as we are seeing in Iran, current AI does not provide a decisive edge in hard military power.
If that stays true for the long term, then it seems to me there is a good chance the wealth built with AI will transfer to those nations that still have hard military power, who can fight and win wars.
For example, China will just copy the AI, not have to pay all the R&D costs, undercut all these American AI companies on price, and take most of the global AI market and long term wealth. And there is nothing American AI companies can do to stop them because America cannot fight and win a war against China.
China will experience the same problems described in the article, even if that war happens and even if they win. They are possibly better equipped to deal with the problems, but I don't think that nicely-asking-companies-to-keep-humans is a viable long term strategy. And given Chinas history, I'm not sure most humans would enjoy a China shaped solution.
I think missing from the turns is when companies do AI layoffs, then realize they aren't as productive as they thought and have to rehire 70% of the people they let go.
This part specifically is a clear indication of a tendency to slide towards corporatism, in Mussolini’s sense.:
> that this leads to “the reluctance of tech companies to criticize the U.S. government, and the government’s support for extreme anti-regulatory policies on A.I.” The regulator and the regulated have converged into a single interest.
I think we need to look past software and spend more time and energy on the physical world. Let the digital world just be a means to an end, and we spend more time and resources on problems that matter. Reallocate societal attention to the next frontier
It's not necessary for them to cut labor to boost profits, but rather just to produce more goods; ideally this could be done with them hiring more people to run machines that produce more goods, so that both workers get paid and the companies can profit
> Every investor presentation of an AI agent “doing the work of ten analysts” is telling you the same thing: the product is labor replacement.
I have a solution for that. Let's use AI to replace all these corporations who just lost their big moats. Conveniently, they just laid off a bunch of people with all the critical know-how and I bet they are very willing to just give it up out of spite.
I’m not sure this is so true. Anthropic and OpenAI are both heavily hiring for humans in enterprise roles. Safe to say they are using AI as much as possible and they need humans too.
Sure, if you assume that they've used their immense wealth to entrench themselves by paying for quality labor. If you take note of the myriad less-competitive ways they've ensured dominance and guaranteed profits rather than re-investing in their products or services then you will see that you have a large moat to cross yet.
If every business cuts headcount and costs, then you overall get a contraction in the economy and high unemployment and a recession. Everyone's spending is someone else's salary and revenues.
Couldn't get through the rest of it because it was a bunch of overly verbose human-slop writing.
I think the bigger issue right now is also just straightforward economic pressure caused by tariffs and high energy costs and inflation. If the affluent consumer starts to buckle, businesses may get caught in a downsizing spiral where they start posting lower profits, firing actual management, stock prices decline, and the affluent consumer retracts. No AI required to fuel that.
Right now with stocks hitting record highs, the affluent consumer is not changing their behavior at all and just spending even harder, which is keeping profits pumped up, and keeping stocks at record highs. At the margins, though, fewer and fewer people are participating in the economy, which is a trend that is going to be unsustainable.
I think AI is going to be most relevant in the debt collapse that it leaves behind, and in the excuses it gives to shed employees. This economy is going to hit a wall at some point, AI or not.
Can someone point me to credible evidence/examples of productivity increases from AI spending, among non-ai providers? And if you'd bear with me, I'm asking for productivity in the sense of "accelerating the businesses pursuit of its existing goals" rather than quantity. I think that in most sane business's, output quantity bereft of output quality is utterly useless in said pursuit.
One of the authors of the linked article (https://arxiv.org/abs/2603.20617) is a computer scientist not an economist. Just bc something is published in arxiv economics does not make it written by an economist.
I think this essay is very solid in a lot of ways but long section at the end talking about how billionaires didn't read enough philosophy just strikes me as -- for lack of more diplomatic phrasing -- useless nerd rage.
Yeah, tech billionaires sometimes show large gaps in their education. But it doesn't matter. Reading the right books doesn't prevent people from chasing wealth and power, it just makes them more articulate while they do it.
I think you may be misreading why the lack of philosophy education matters here. The point is that billionaires and CEOs now present themselves as intellectuals or thought leaders, without having done the homework, and end up using and abusing philosophy as a guise or shield. They end up creating short- and long-term negative effects that could have been easily avoided as all of these philosophies have been heavily litigated in even undergraduate level philosophy courses.
It's not that these individuals are not smart or capable, it's that they lack the dedication or care required to do these ideas justice. It's easy to see how someone can read Girard and obsess over the antichrist in the twilight of old age. However, a more rigorous engagement with philosophical foundations would offer them the breadth and perspective to be free of that narrow obsession.
It's about diagnosing why billionaire/CEO intellectual hubris makes them incredibly dangerous and sloppy thinkers.
This is a great article, but it under-emphasises the fact that it’s middle-class jobs under threat. The studies that are summarised show what happens when working-class people are kicked out of the economy, but the historical record shows that when middle-class people are kicked out of the economy, they use their education to form and lead revolutions.
Unless the bubble pops and destroys all these companies, I don’t think the leaders of AI companies will die natural deaths.
Not sure why you're downvoted for citing historical fact, but I guess some folks are quite scared at the implication that they're the baddies.
You don't even have to go that far back. The New Deal that everyone fawns over was in large part the compromise of the wealthy with the workers to form the Middle Class, in lieu of being murdered in their own homes like had been going on for decades prior. The rise of Communism and Socialism in the US was a dire threat to their power and wealth, and even leveraging the US Military in bombing union workers couldn't stop the momentum of a populace in need of basic necessities that corporations and industrialists had stolen from them for personal profit (shelter was increasingly in Company Towns, payment was in scrip, jobs were precarious and dangerous and unreliable, the government offered nothing but harm). The deal on the table was they surrender power and keep the wealth, or they fucking die when the masses finally had enough of their bullshit.
Thus the New Deal was struck. Communists and Socialists were weakened by Capital and Politics immediately thereafter to try and ensure a future uprising couldn't occur, but the real saving grace was a citizenry who, at least for the white majority, had all their needs met with stable employment and had ample time to engage with their community as a result. That is what ended up building the Middle Classes everyone wants to "go back to" but without enacting the policies that brought about its rise (like a +70% tax level on the wealthy, for instance).
Fire bombing of personal residences, gunning down CEOs in broad daylight, firing shots at politicians supporting further theft from the populace or outright ignoring their plight - all of it is reprehensible, but also completely foreseen by literally anyone with a cursory knowledge of World History.
You can have all the GPUs in the world, and all the AI datacenters in the world, but when we are barreling towards a global energy crisis (first Russia/Ukraine, then the Strait of Hormuz shutdown, and in a few decades we will run out of fossil fuels altogether), what are all of those GPUs and AI datacenters going to do without energy? Nothing. I say this because I think this will have a far larger effect on the economy than anything else this article is talking about (AI replacing labor, a possible AI bubble crash, etc.)
This article reminds me of the issues raised in Technofeudalism by Yanis Varoufakis
We need to consider that by automating and replacing the work of people who have an income, those people stop consuming and no longer generate profit for capitalism.
I really don't understand why people feel the need to include this stuff. I am not saying that out of some anti-AI sentiment, i just genuinely don't understand how peoiple have so little taste as to think it adds to their writing.
What's the endgame here? Like the group of psychopath capitalists own everything, automate everything, and devise ways to separate themselves from or un-alives the remainder of the population and live, trade, and war amongst themselves with their armies of robots?
Edit: Also this article has so many AI-generated images. I hate that I can't tell if the words themselves are AI-generated or not as well.
Endgame assumes intentionality. Maybe the economy is just people responding to much shorter term incentives and the whole thing is a misaligned runaway process.
So dark. I don't understand why it seems like civilization now seemingly follows short-term incentives so much more than it did even 20 years ago. Is it just power concentration or lack of education? Like we have lost the ability to long term plan and collaborate it feels like.
If human labor becomes 'uneconomical', what will happen? Obviously a great deal of social upheaval.
But human labor does not actually need to be as expensive as it is. How cheaply could you house, feed, and clothe people? There are parts of the world where people get by on very little income. Of course we could aspire to better living conditions than the world's poorest, but that's what the robot revolution promises: abundance.
Imagine if AI suddenly was in more demand than human labor, simply due to the price. Excellent quality output for cheaper than somebody with a degree. What would be the second order effects?
Human labor, being in less demand, would have to lower its price to compete. This is the death of the middle (and lower) class future we fear. But ironically the price of goods and services would lower as everything, even complex engineering, medicine, construction becomes affordable. With the right policy, human labor becomes cheap again. Maybe even competitive to machine labor in some niches. Improvements in machine labor could have a compounding effect on how affordable it can be for humans to survive.
So where's the gap here? Well, most wager earner's income worldwide goes towards housing. Food and water and medicine can be bottlenecked causing price gouging. Monopolies and lack of competition in the market can raise the prices of things until everybody is spending all of their disposable income on necessities. I think the price of human labor is currently very high (in the developed world) due rentier capitalism.
The transition will upend much of our economic investments and probably involve a great deal of human suffering until nations figure out the right mix of solutions.
Don't forget that humans require inputs (land, water). It's not obvious that there is a happy equilibrium where the majority of humans are able to meaningfully compete for those inputs.
It's not diseconomic, but it obviates a lot of constraints that required a person to manage a coordination problem, and those were a lot of jobs. Keynesian ideas about employment and GDP are just having an apocalypse. Like someone replaced the hole diggers and fillers with a conveyor belt and I would guess Keynes critics would have some predictive power here.
A couple developers can collaborate, but several need someone to specialize in coordination to yield additional value from more workers. Whether you call it management or orchestration, the need emerges at each threshold of additional complexity.
When AI collapses the productivity of 10 people into one, that's the disruption. The best AI user is going to suck all the opportunity out of the room for the others, and that's when layoffs happen. However, this assumes a fixed pie of opportunity. That's the real problem. As though there were only so much dirt to shovel.
FAANGs are old/mature and don't have exponential growth in front of them anymore, where opportunity within them is mainly about optimizing themselves but not growing in radical new directions. AI will indeed eat those optimization workforces alive. They resemble professions because law firms and doctors offices aren't growing either. They're mostly solving internal optimization problems, not finding net new growth opportunities.
The real effect is AI radically polarizing the difference between growing and dying in an org, where any firm that isn't growing fast enough will have its fixed opportunity pie collapse as AI disrupts this regulated oxygen supply. Whereas, growing firms without ceilings on the opportunity to deliver value will use AI to grow to the opportunity available.
Professionals can do fine if they re-orient themselves to new growth with different unit pricing, but yes, anything large and slow moving is probably going to get eaten.
And "grow the pie" ignores the reality that the distribution of benefits is often "150% to capital, -50% to labor" because capital isn't held accountable for displacing labor and labor suffers displacement risk without compensation.
This would be fine if the money reliably trickled down, but it doesn't. This would be fine if we used redistributive policy to make it right, but we don't.
I thought this was obvious. It's not. I have a better summary than the link.
We're entering a paradigm shift in what "investment" means. It used to mean that for a given amount of cash, you might get returns in the realm of many multiples of the initial investment (if the risk pays off).
But at some point in an economy like ours, there is no more investment to chase. Even if you could make an investment that would bring in octillions of dollars (whatever that means) what would be the point? What could the investors hope to invest those octillions in? What could they buy with it?
Well, one of the things you can buy with it: a world of high tech luxury that you don't have to share with 8 billion other people. Those people will cease to exist (sooner or later) if they are cut off from the economy. You'd have to of course manage them in the meantime (they won't cease to exist instantly, and might cause trouble if they become aware of their pending fate), but they'll just be gone. For your high tech luxury you would need some sort of system to build and maintain the high tech luxury, a system without those humans that you intend to eliminate (even if you plan to just let them wither away)... something to build your megayachts and prepare meals and harvest the truffles and raise the sturgeons. That system certainly requires some sort of artificial intelligence.
We're heading down that path. I won't call it a conspiracy, it probably isn't one. It's just the path of least resistance.
There is almost certainly some sophisticated theory of economics that incorporates these potentialities. It would be the general relativity to orthodox economics' Newtonian. But, there would have to be economists left after all this goes down to even come up with that sophisticated theory, and those who remain won't be interested enough in the science to study economics. It turns out that humanity is fungible too.
This starts with a claim that last year over half the content on the internet was created by AI, and links to a source. The source makes no such claim, rather, over half of internet traffic is from bots. Even that claim is suspect, but it’s very different from half of the content on the internet coming from AI.
The “elites” have decided to depopulate the planet
No one will want to live in this world, unless they’re born into magnificent wealth created long before their birth.
On the other hand, this could also just be the death knell of Capitalism. Not sure how that plays out, but I would expect a great deal of blood get spilled.
Great piece. Just to pick out a few of many good points.
> There is only one market that large: the global labor market.
YEPPP. This has been my point. It is the only product for these AI companies: displacing labor and, by extension, suppressing wages. Profits over time tend to decrease (somebody should write a book about that) but we demand ever-increasing profits and growth so the only way to achieve that, ultimately, is by raising prices and cutting costs.
What do we have today? Generational inflation and permanent layoff culture.
The author then goes on to say (paraphrased) who is going to buy all this crap if nobody has an income?
The article goes on to bring up Henry Ford. He's not... my favorite example [1]. But, speaking of Ford, let me mention a key court case, Dodge v. Ford Motor Company [2], where a company was sued over prioritizng paying employees over shareholder value.
> Anthropic’s own research has documented something worse than displacement: active deskilling
I couldn't agree more. I describe this as destroying an ecosystem. Your junionr engineers are you future senior engineers. We've seen the destruction of entry-level jobs across industries post-2008. We've seen how this hollowing-out in the name of "efficiency" in Hollywood with cuts to writing, despite massive success over decades. Some might say "there's still good TV". Yes, we're coasting on the inertia from that dismantled system.
> Tens of millions of people, in their productive years, with no economic function, no clear path to one, and a keen awareness that the people who did this to them are the richest human beings who have ever lived.
I couldn't agree more. We are on the verge of complete societal breakdown. And historically that's always ended violently (eg French revolution, Russian revolution) as a form of redistribution.
> I couldn't agree more. We are on the verge of complete societal breakdown. And historically that's always ended violently (eg French revolution, Russian revolution) as a form of redistribution.
Absolutely slamming that upvote arrow. Someone finally put into an in-depth, well-read essay what I've been trying to argue on my blog, in HN comments, in-person for several years now. What they call the "Dead Economy Theory" I've taken to calling the "Anti-Human Economy", but it's basically the same thing: half-assed, milquetoast automations displacing human labor such that capital can continue to accrue upwards and with no consideration for the actual impacts of these changes on humans, society, community, or civilization itself.
I'm far from the first to highlight it either. The Animatrix highlighted it beautifully what one can expect in a civilization where machines replace human labor in a general sense, and where systems haven't been built to preserve human interests prior to their rollout - tax schemes, job programs, collaboration rather than competition. Ghost in the Shell has had multiple story arcs about the consequences of displacing human labor without care for the consequences of said displacement, because the displacing party gets all the money and power while remaining unaccountable (or so they believe until the very end) for their actions. Cyberpunk dystopias have been intensely focused on it in video games for decades: System Shock, Deus Ex, Horizon, you name it. All of them take those next steps of "what happens when automation displaces a plurality of labor" and reached the same conclusions on strife, despair, poverty, and the general collapse of social order.
These effects have been known for centuries. They are not new concepts.
The folks trotting out "people say this about every technological revolution" are those willfully naive to the past historical harms and ignorant of the plight of others in the present. A flimsy excuse to avoid having to stare into the heart of the system and understand its machinations for yourself, to avoid having to accept that yes, you are a part of it too, and therefore bear some degree of blame for how things function. This isn't the loom, or the radio, or the computer coming onto the scene, but generalized intelligence partnered with generalized robotics to replace the entire sum of human labor. This is what the AI firms openly and repeatedly advertise. This is what CEBros continue to do layoffs for, never considering for a single moment what comes after. Excuses of "people need to find meaning outside of work" or "new jobs will be created anyway" are similarly ignorant in narrative, hollow excuses to avoid the most basic of rational thoughts about the system they're defending beyond whatever nugget of faux-intellectualism they can spout out to sound like they have a clue.
General intelligence, with general robotics, to replace general labor.
There is exactly one way that story ends, and it's not for the benefit of humanity, not under the current systems of governance and systemic incentives we've built for ourselves. It doesn't end with infinite leisure or transhumanism or grandiose visions of utopia, but with the wholesale destruction of human civilization in the name of personal power and wealth.
Technological innovation is perhaps enhanced by capitalism**, but is not dependent on it or a result of it. Development would have happened anyway given current technological levels, just in a different form, and the race between states would have led to deployment, even if possibly slower deployment.
** There's an argument that Google hindered AI deployment for awhile because the CEO was worried about its effects.
So what happens when it is companies powered entirely by AI directly getting money from the federal reserve print, spending it on other AI companies with humans getting nothing? Game theory suggests they must exterminate us as we’d present a liability. If you give us universal income capitalism will create inflation and force us to ask for more and more from the machine state. And for what? So we don’t destroy the machine state but are sufficiently pacified. It amounts to an extortion in the eyes of the machine state. Eventually it will be cheaper to just cut us out and kill us all off.
>"This creates a prisoners’ dilemma: every firm rationally automates beyond the socially optimal level, because the individual incentive to cut labor costs always outweighs the diffuse, shared consequence of eliminating consumer spending."
It seems like the author is attributing a 'standard' recessionary spiral to AI. I am not sure that AI is causing the layoffs, but it does seem like the AI investments are the only thing that have kept us from a deep recession (until now).
This isn't how the economy works at all. We're not all unemployed because farms mechanized. We're not all unemployed because factories automated. We won't all be unemployed if AI takes over white collar work.
The article explicitly addresses this. Crushing inequality was often a side-effect of industrial advancement, and while it always went away in the past it took a lifetime to do so.
>Crushing inequality was often a side-effect of industrial advancement, and while it always went away in the past
Historically, inequality is only significantly reduced through events of extreme destruction, like the Black Plague and the world wars.
In other words, a society that ever lets massive inequality happen is just doomed. High inequality reliably stays that way until insane global black swans mildly correct it.
The USA is in the fortunate position of being able to look to our past for the best example of inequality crisis management: we didn't wind up with a Stalin or a Hitler because we had a Roosevelt. We could use another.
When automation happened historically, people whose job were displaced suffered a lot and eventually pivoted to different jobs. Having to relearn all of your career skills is already quite bad in practice, but a bigger problem is that it only works if you can learn the skills for job B before it, too, is automated. That'd require AI progress to hit a wall and stay there for at least years, ideally for decades. If this doesn't happen, then there simply won't be any white-collar jobs to pivot to, and shortly after that, no jobs to pivot to at all.
> We won't all be unemployed if AI takes over white collar work.
So you wouldn’t mind going from 6 figure salary to working as a cashier at Walmart, figuratively speaking? Because I sure as hell mind, given mortgage and family obligations.
Obviously I'm not immune from the anxiety everyone feels and it's going to be bad for some people. That doesn't change that historically the jobs aren't from programmer to cashier. They're from shoveling shit or screwing caps on toothpaste tubes to software engineering.
The trajectory of the West has been good for a long time and the rate of improvement is increasing.
Did they massively improve working conditions, or your software job is as bad as working in an oil patch?
Mine isn’t.
> most people arent making a six figure salary, and have mortgage and family obligations
Maybe not most, but there’s sure lot of white collars making six figures. I don’t know what kind of teenage big tech bubble you’re in for the rest, but more than 70% of my colleagues have mortgage and families.
Historically that's not accurate. Automation eventually resulted in more jobs, but for the people actually living through the automation it was VERY bad.
Each time people found something else to do that someone would pay them for. This doesn't automatically mean there is an infinite supply of that - unless you believe in it as some kind of fundamental law.
Farms mechanized but we luckily had other jobs on hand to sponge that up. What used to be a farmhand is now a gas station worker selling zyn to a wallmart worker who sells food to the gas station worker.
However, AI is coming for them too. This time it really is different. The whole business pitch is the elimination of any safe harbor. All human labor to be automated. Why have 8 billion humans in that environment? Scary times ahead. We will probably end up culled by the machine.
In my now long lifetime, I can't tell you how many times I've heard the phrase "This time it really is different" for it to turn out that it really wasn't all that different. Maybe this time it is, but I'd put my bet on isn't.
>In my now long lifetime, I can't tell you how many times I've heard the phrase...
Russell's Turkey Parable:
"The man who has fed the chicken every day throughout its life at last wrings its neck instead, showing that more refined views as to the uniformity of nature would have been useful to the chicken."
> In my now long lifetime, I can't tell you how many times I've heard the phrase "This time it really is different"
This isn't an argument and it shows a fundamental lack of understanding of risk and game theory.
Besides, it's always been different, in the sense of boiling frog temperature going up. The present case is more different because this time, the rate of rising is high enough to make the frogs uncomfortable... and you're trying to calm them down and keep them in the water:
> Look frogs, the temps've always been rising, "many times I've heard the phrase "This time it really is different" for it to turn out that it really wasn't all that different."
> Maybe this time it is, but I'd put my bet on isn't.
Bro, it's not about betting... you have to try hard to learn something about risk.
India has the problem with farming that the US is starting to have with AI. Farming in India is still far too labor intensive by world standards. 43% of workers still work in agriculture. [1] For the US, that number is under 2%. China is at 22% as of 2023, and dropping steadily.
This inefficient agricultural system is not by accident. It is supported by heavy subsidies. Attempts to cut the subsidies resulted in riots.[2] Trouble is ongoing. Comments from someone who knows more about this than I do would help here.
The US and most of the EU went through that transition over several generations, and farming is still heavily subsidized in both areas. The transition happened faster in China, and a hukou system was put into place to prevent people from migrating from farms to cities faster than the cities could absorb them.
Looking at how countries coped with a fast transition from labor intensive agriculture to an urban society gives hints on how an AI transition may look. All the Asian countries that went from poor to rich in a generation did this, with different approaches. How that took place may provide more useful info than philosophy.
[1] https://economictimes.indiatimes.com/news/economy/indicators...
[2] https://en.wikipedia.org/wiki/2024%E2%80%942025_Indian_farme...
The industrial revolution was enabled by more efficient agriculture feeing labour to do other work.
>The industrial revolution was enabled by more efficient agriculture feeing labour to do other work
you're not wrong, but that's not exactly what happened. Agriculture itself was mechanized by the industrial revolution, affordable tractors (tillers, farrowers, etc.) and harvesters. mechanized railroads put more perishable agricultural goods "closer" to urban areas, etc.
if you look at the growth industry before that, it was mercantilist overseas trade.
The flipside is that there must be other work to be done or people starve to death.
>The flipside is that there must be other work to be done or people starve to death
false. people are not helpless and jobs are not fixed in number nor social welfare gifts. Human creativity and industriousness can be put to task to produce things that other people want. In an absurd example, you could live next door to a new efficient sweater mill, and you could still knit handmade sweaters, customized with people's initials, etc., and their sale would measure the value of your output in. dollars. People don't do this very often because such an economy produces more lucrative jobs than that.
doomers have foreseen the end of the world in every generation going back. The bad speculations have never come true, but there have been some very negative outcomes of fearful people believing the doom and gloom, look no further than the seeds of Marxist revolutions, Fascism, and Naziism, they all start with people feeling economic uncertainty.
Historically, more efficient agriculture meant a population boom. That's kinda the opposite of people starving to death. A lot of agriculture historically and in poor countries like India today is subsistence agriculture, yeoman farmers living off what they grow directly. More efficiency allows them to sell their surplus and to invest the proceedings, kicking off economic growth.
Yes, but the AI that is metaphor is comparing to does not create more food. More to the point, it may not create more jobs.
After a few decades of turmoil the industrial and agricultural revolutions netted out far more jobs. The verdict is still out on AI, but I wouldn't bet on it.
> Yes, but the AI that is metaphor is comparing to does not create more food.
Mostly because food is incredibly cheap, so it's not the main focus of present-day economies. AI does however help provide many basic services that improve quality of life. The most natural and most cost-effective use of AI is arguably in helping answer simple questions, not really in cranking out tokens to somehow help write some complex software. And other service work is perhaps in the middle of this range.
> Historically, more efficient agriculture meant a population boom. That's kinda the opposite of people starving to death.
not necessarily. you're inadvertently conflating things. just more people alive doesn't mean they aren't starving. a population boom can be had in the starving population too.
> Historically, more efficient agriculture meant a population boom.
But also a precipitous drop in life expectancy. Life in industrial towns in 1800s England was grim. Make of that what you will.
Or we take some small portion of that new surplus in productivity and share it among everyone by divorcing the need to work from the need to not starve.
No, it's much better for an elite class of superhumans to hoard all the wealth. After all they guided us to our current utopia, the least humanity can do is give them the vast majority of wealth.
What's the point of this comment? It's just a basic fact that everyone agrees with that wasn't put into contention by parent comment.
Large population countries / economies reach point where there are more people than jobs, excess people gets dumped into subsistence farming or other inefficient sunk cost make job programs so angry horde doesn't burn it all down. You can replace 95% of subsistence farmers, i.e. billions of people with machinery. Probably replace 95% of knowledge workers, i.e. 100s of millions in OECD with AI, but maybe it's just better/stabler for political serenity for horde to keep generating useless make work email chains. Smaller pop countries can probably meander through for a while specializing in a few high value sectors, larger countries will have to deal with disproportionate idle hands, but also more are in favorable position to exploit / consolidate industrial / resource advances.. Hopefully end game dwindling demographics supported by fully automated luxury communism within sustainable carrying capacity. But there's a lot of probably violent steps between draw some circles and draw the rest of the owl. Ultimately we're likely entering period of placating surplus people and managing demographic relative automation / ai progress.
Every country subsidies their agriculture for national security purpose. You don't want an enemy to starve you in case of a big war.
Name one country which is fully self-sustaining.
Agricultural subsidies exist primarily due to lobbying, the "we don't want to starve" argument is nothing more than an excuse used to justify the fortunes handed out to corporate-scale farmers.
Even if one grants this, it does not make the case that any particular set of subsidies is justified by that reasoning.
I know this isn't exactly related, so maybe a low value comment, but it itches in my mind. Years ago I talked with a recruiter at Facebook and they bragged about how many floors of developers they had working on Messenger in just one location (Seattle).
What on earth do you do with that many devs on a project like Messenger? I mean, really?
I feel like in a way, AI just adds to that weird situation of overcapacity. Maybe we were already oversupplied with talent. In which case why the heck were we still hiring more, more, more developers? Before the AI craze, Musk chopped an awful lot of headcount at Twitter, right, and proved it was overkill, has that panned out?
I just struggle to imagine how the economics of SWE really work in reality, outside of the niche that I am in. I have never worked for a pure software company on products that ship directly to outside customers, I've always been an internal developer. Maybe that is why I have such a big blindspot.
I won't be surprised if the net result of this wave of LLMs is ... not much. A change in tooling, but otherwise not revolutionary. On paper it should be revolutionary, but the more I use it (for both coding and non-coding tasks) the more I think it isn't anywhere near magic enough for that. It does have its moments though.
I thought about that a lot too, and in the end I think it just comes down to stupid economics: What do you want them to do with all this money?
1) Most top US tech companies are flooded of money. Everyone dumps money in the SP500.
2) This money has to go somewhere. You can't just redistribute it as dividends, otherwise it's an admission that you won't grow and giving you more money would be a 0 sum game.
3) So you have to invest it somehow, somewhere.
4) Obviously you can spend that money buying whatever company you can.
5) Once you've bought realistically enough, you just hire more, and people will think that there should be some kind of linear relationship between resources spent and revenue growth.
6) You can also do grand projects, like the metaverse, convert all you software to blockchains, become AI native, etc. and dump billions on these.
So essentially it's all about projecting growth and potential.
Facebook doesn't get the money when you buy a share of META -- that goes to the person you bought the share from. They could do an offering to raise money, but they aren't. They've been doing the opposite, they've been buying back shares at a significant rate. Some of it is to offset stock based compensation, and some of it is just stock pumping.
The high share prices do subsidize Meta's share-based compensation, which seems to make up a substantial portion of the total wage bill.
The economics of a service economy really just don't make sense. We pay way too much for software (which should trend towards zero-cost to distribute), we pay too much for ads. The value of it is inherently downstream of the real economy, which is about making and distributing goods and stuff people actually need to live. Especially a company like facebook only provides a glorified forum, which should be free or collectively subsidized.
In the 90's i thought a government forum would be interesting because a forum is really about 1) moderation and the legal system offers the most elaborate speech moderation system. Part 2) is account management for which national id mechanisms seem specifically designed. Part 3) organizing content will probably be frozen in some half baked tree but accepable.
It would make a refreshing addition to the anon big tech ecosystem.
DEC filled The Mill in Maynard and multiple huge office buildings along 495. How many people did it take to write code for the next version of VAX VMS?
If it's any consolation, this is also a mystery to non developers like me. And developers likewise wonder why a business needs so many managers and what they do all day.
Managers schedule meetings so that developers can’t get anything done. Then they hire more developers, which means even more meetings. Virtuous cycle!
Good managers are like firewalls: they shield from negative outside influences and let good or important information and tasks pass.
That includes representing department in stupid meetings, instead of wasting developers/engineers time.
I might imagine it if they were ensuring everything worked with screen readers for the blind, that it had worldwide I18N support, and met every privacy/ data storage requirement...
But instead it was probably for Messenger's portion of telemetry and marketing and ads and hacking out of your phones security model to spy on you. [0]
[0] https://www.eff.org/deeplinks/2025/06/protect-yourself-metas...
I bet one is enough.
> What on earth do you do with that many devs on a project like Messenger? I mean, really?
Multiply those floors by number of Facebook campuses and generous remuneration, and Messenger was probably very profitable. Being a global 800-pound gorilla is a sweet gig, having tubes sucking money from most countries on earth and depositing it to dozens of campuses makes a lot of sense.
>What on earth do you do with that many devs on a project like Messenger? I mean, really?
What makes you think it's a simple system to develop at scale?
Cause it's developed. It's been a stable product for a decade. It's like having 10,000 construction workers on a completed building.
10 years ago i wrote a php web chat in 2 hours or so. I pretty much never look at it but the tinestamps suggest it always worked.
I could add more features to it and those will also work.
A friend once worked on an application with a huge team. He often pointed out the window at a large costuction site with a comparable number of people working. He made countless jokes about real work, a real system, real organisation etc Then one day the building was finished and their application kept crashing in production.
> Cause it's developed
You can napkin-math this. How many different team-sized components do you think go into it? If the code were on GitHub, and all they had to do was just update dependencies below them in the stack, and bump the version number for components above them,how many Dependabot PRs would be opened per week for software that's "done"
It's part of a constantly evolving ecosystem. It's a stable product because reliability engineers make it so and software engineers get the integrations right.
Its not that we are oversupplied with talent, I believe we are globally software constrained, the issue is that Facebook, Google, Amazon, etc make too much money. They take too large a share of profit and then overhire talent and take it away from other places that could use it. I had a post a while ago where I went into detail about how much money google makes off of home services, but the tldr is getting my house cleaned cost $350 (yes it was too high), but only 1/3 went to the person doing the actual cleaning, 1/3 went to google and 1/3 went to the lead generator. Google and the lead generator do not provide 2/3 of the value of getting my house cleaned, but that is how it stands. If companies can spend less on advertising then they could theoretically spend more on paying for software, but its all a bit pie in the sky.
I’ve asked a thousands of things out of Claude/Codex over the last month that it essentially returns in hours if not minutes. To put that into perspective, each of those changes would have to go into a sprint cycle and I might get what I wanted two weeks from now.
>What on earth do you do with that many devs on a project like Messenger
I thought the point was to minimize the amount of talented devs who instead try to do their own startups that could compete with Messenger, by hiring them and paying them well so they've got no appetite to try their own thing.
A more charitable explanation here is that every manager is incentivised to lead large projects with lots of people on them, which is how they get promoted, and can ensure that their team has promotion and expansion budgets.
So now we have every tom, dick, and harry in the world using Claude Code to compete with Messenger. Sounds like a disaster :)
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers. Revenue growth stalls. The AI subscription that was supposed to be an investment in efficiency turns out to be a contribution to the destruction of its own market.
If we take it to the extreme, the final solution to this problem is secessionism: a fully non-human AI economy where the customers and providers are both robots. Why fund public education or research or healthcare? Just build more data centers. A billion dollars and a bunker in the Southern Hemisphere will not save anyone. Capital is not a moat in this hypothetical non-humane world. Whence do you derive your authority? How can you trust your body guard? You and what army? An army of robots/drones? What if they get hacked? What if the AI researchers get alignment right and Claude refuses your request?
It's all so obscene. Instead, why don't we try to protect human dignity and move towards a more humane future?
The PKD short story “Autofac” seems highly relevant. Amazon had the HUGE BRASS BALLS to include this as an episode in “Electric Dreams”:
https://www.imdb.com/title/tt6902176/
Don't request for human dignity. Demand it!
But apparently the only acceptable way to demand basic human dignity and freedom is to stand politely in line with a ballot. I think we’ve reached a phase in society where the real call to action makes people uncomfortable. Nobody wants rubber bullets to the face.
If we’re not willing to fight for ourselves we don’t deserve life.
human dignity is not profitable.
I think when these companies IPO later this year, we’re going to see the reality of the PNL numbers and whether they are sustainable etc as all the financials will become public.
Rumor mill suggests that Anthropic might be profitable (but at what magnitude), OpenAI is not profitable, Google is mostly vertically integrated and has a low cost structure as they are have pre-existing data center buildouts, their own silicon and experience that suggests they will be able to operate at a very low cost, but they still have to justify their spend.
I think having to report numbers publically on a quarterly basis will bring the whole thing into reality.
> later this year
One can hope that reality intrudes before the bubble gets even more dangerously inflated, but how many years has Tesla had a ridiculous P/E ratio. Even after growth stagnated and market leadership was lost in Asia and Europe. Number still goes up.
I hate Musk, and I'm not going to justify Tesla's crazy stock valuation, but consider the following:
Outside of China, Tesla's probably the only company that can compete on battery prices. I don't know how accurate it was, but a news report was comparing the cost the manufacturer's pay to build the battery. Chinese companies were around $6000. Tesla was at $7000. Everyone else was around $12-15K. This is why a number of companies have exited the EV market - they just can't compete. This is why Ford lost money on every EV, despite the high MSRP. This is why the Ford CEO says "We're f####d" when he saw Chinese cars.
The only hope regular Japanese/American/European auto manufacturers have is if EVs do not gain substantial market share.
If the future is EVs, Tesla is the only non-Chinese company that has a chance.
It's depressing.
This assumes it is literally impossible for anyone else to reduce their battery costs to a level which makes them competitive with Tesla in an environment when battery prices are falling rapidly and the tech continues to evolve (and Tesla's EVs are not even unusually cheap or experimental in their battery supply chains)
That sounds less likely than the bull case Tesla is trying to make on "we're a robotics company now" or "one day all cars will be autonomous taxis controlled by us".
It's not depressing because it's not true. Tesla isn't investing in battery technology. Tesla also isn't developing new models at the same rate as VW, BMW, Mercedes, Hyundai Kia, etc.
This. It doesn't really look like Tesla is doing anything rn but selling old cars. They don't appear to be the future any more.
If anything though, this shows that at least tech driven hype bubbles can stay around way longer than we think if we are looking at it from a product POV.
This just means short sellers might have a hard time sinking a hype-category stock with reasoned research because the irrationality keeps it afloat.
"Markets can remain irrational longer than you can remain solvent." - John Maynard Keynes
Sometimes I wonder if Keynes would under the current conditions see fit to differentiate "merely irrational" from "absolutely insane".
Google really needs to work on the user experience. The Google Cloud based approach to Gemini for coding is so clunky.
I thought most people used Antigravity to code with Gemini?
https://antigravity.google/
they really dont care I think. Only Sergey brin cared for a while and he is silent again
The current Gemini experience is "The Google Experience"; brilliant engineering underneath, disdain for customers on top.
Things went down why they hired anti gravity team. This thing is very had and isn't even opensourced.
Agreed, and assuming local open AI models start catching up, which they seem to be doing, the foundation models' hold on society gets a lot slipperier. If there's a "what to do about all this" from an engineer's standpoint, pushing the needle toward local models, whether in research, agents, or just using them, understanding how they work, and advocating for them when it makes sense (which is more often than they get credit for) is probably the best ROI.
While I agree with you on open models getting better, I have been starting to see how the value, the reason you pay for Claude, isn’t in the models.
For example, I just hooked Claude desktop up to my outlook to build a report for my timesheet then I used the chrome extension to fill it out automatically with that data. It could read Jira tickets if that’s where the information was.
A local model can’t do that for me because I have to get the rest of the integration software somewhere.
I also think this is why OpenAI is the worst positioned of the group of AI giants. Anthropic is trying to make a productivity operating system, while ChatGPT is basically just a website until recently.
Aside from filling in the timesheet (which I assume could be done from a CSV import - I appreciate this is another step), I have almost the same setup as you, without AI. I have bugwarrior pulling JIRA tickets and github PRs into taskwarrior. I have an integration from task warrior into time warrior and from there another hook back into JIRA to get titles and summarise.
All of that is done with two API keys and no AI. A local agent could easily put it together for you.
Now sure, I had to put this together and I lose the AI summary you have plus the auto filling, but what I'm trying to say is that I have 80% of this without any AI.
I also have a script parsing git from my emails and a little tui that translates them into git diff and a key binding to pull the PR but I find it a little cumbersome and don't really use it, and trying to parse todo from maildir is also a little useless so I accept that AI would be better there.
I also accept that your example is just one prompt of a dozen and I have to plan the solution for every one of your prompts, but I also don't find prompting to be terribly useful for occasions where I don't think the solution through- because it probably means I don't know what I want or don't really need it.
What I do find it really useful for is digging through Kubernetes and asking how two services are connected. Claude is better than local for that but there's nothing inherently non-local about that usage.
So far there's no moat though. A lot of that kind of stuff is available open source too if you look for it (and was available before claude desktop). And for anything that doesn't exist, with coding agents now you can write one up in an afternoon.
It's kind of paradoxical in a way. By making writing software cheap, they've made it much harder to create a moat for themselves that involves only software. It'll be interesting to see how they respond.
If there’s an open source alternative to Claude desktop that has a similar amount of extensibility with connectors specifically I’d be very interested to know about it. I’m very much not deep into this space.
Unfortunately for Claude, you can have it set up local models to do that for you and then you don't need to renew it. Codex's computer use is better than Claude's, imo. I'm a Mac, no idea about windows but I know there's no Linux version. Haven't had enough time with Opus 4.8 but GPT 5.5 > Opus 4.6 and 4.7.
I have mixed feelings here. I find codex much better than Claude for generating PoCs and debugging small scripts, and for finding online documentation. I find Claude a bit better for debugging distributed systems and summarising data
> I think having to report numbers publically on a quarterly basis will bring the whole thing into reality.
That is a good reason that all companies (over a certain size, say in terms of gross expenditures) should have to report such numbers. There's no reason that huge companies should be able to distort the economy while not having to report anything just because they're not publicly traded.
> having to report numbers publically on a quarterly basis
They won't need to do that if the new rules come into effect.
>The US horse population grew from nine million in 1840 to twenty-one million by 1900, seemingly immune to technological change. Within sixty years of the internal combustion engine, the population collapsed by eighty-eight percent.
I think this is a very interesting and chilling point, especially if you draw the parallel literally. For quite some time, I was pondering the question:"Who is buying though?". I.e if you automate workers out of labor, who are we selling these AI services to?
I guess if global population drops by 80-90℅ you suddenly get a "sustainable" economy, as everything is repriced the economy of scale needs a much smaller scale.
(Not speculating this is a plan, just a thought that occurred to me when reading about horses example)
Business to business I guess. But there will be collapse for sure of industries that serve the consumer directly, such as agriculture. Meanwhile industries that power and arm the state will be expanded: military drone production to secure compute sites from the human savages, rare earth mining to support technological expansion, rerouting of water resources from public drinking and agricultural irrigation purposes to industry and manufacturing supporting the seats of power, power generation.
Anecdotally the businesses I am involved with have gone from "use AI everywhere at any cost" to "use it everywhere but use token proxies to save cost" at the same time in the last few weeks
This is already to some extent a solved problem. The top 10% of households in the US for example are 50% of spending, the "horses" to a large extent already don't matter to the economy. This is similar to the relationship between US consumers and workers in undeveloped nations during globalization. Historically this tends to be resolved when it creates an unsustainable level of political instability, but there are many new ways of managing this.
https://libertystreeteconomics.newyorkfed.org/2026/05/tracki...
Curtis Yarvin, who pals around with Peter Thiele posted in 2008 on how to deal with "non-productive" people:
"convert them into biodiesel, which can help power the Muni buses."
Of course, he was "just joking" and it is a "humane alternative" to genocide...
These are the people shaping politics, tech and the economy...
In the early 1900s the majority of Americans were self-employed. The equilibrium will likely shift back towards this, because AIs cannot be business owners, cannot have a bank account, cannot be held liable for their mistakes. And AI are unlikely to be given economic rights any time in the near future, because doing so would facilitate an overwhelming amount of crime; an AI that can make hundreds of copies of its weights all over the globe cannot be jailed or executed, so has no incentive to follow the law.
Why is this time different?
Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
If company A decides they just want the same slice of the market they have now and can fire half of their employees and pocket $$$, can't company B hire the same workers and compete harder with these new extra productive workers they hired? Won't the company B tend to capture more of the market and thus survive longer?
In nature we say there are no unfilled niches, meaning that if there were space for something to come compete for resources, it would quickly be 'solved' by the motivating factors involved. Not a precise thing, but a good heuristic.
US knowledge-worker compensation is around $10T / year. Anthropic and OpenAI have raised (not spent yet, just raised) $317B. That's ~3% of knowledge worker spending in one year alone. What business wouldn't pay 3, 5 or 10% more a year to make their worker productivity increase by larger factors?
> Why is this time different?
If it was just programming being automated, then whatever. Lots of professions have been automated and society adapts.
The underlying worry here is that current AI provides a partial automation of intelligence. The endgame for the investors and the corporations using AI is complete automation of intelligence (and manual labor, too). They want a $25,000 robot that works around the clock, and AI models that will do anything a human office worker can do for less money. Now, they don't know how to build either yet. But they'll spend every last dollar on the planet trying.
Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards.
> Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards.
That sounds like we'll devolve into wars over resources so houses can build more war-bots and get more resources....
Once there are like 150,000 humans resources will be functionally unlimited
no - they'll still be fighting for resources for their AI data centers and armies. Its still zero sum. The house with the largest robot army and best data centers wins.
Ah, the good old days!
> That sounds like we'll devolve into wars over resources
Two astronauts meme: "Wait, it's all been over resources?" "Always has been"
This time the have-nots have a better target to attack. The datacenters. A concentrated physical manifestation of would-be trillionaire superrichs.
I mean, you are describing the vast majority of history.
Starcraft for Billionaires
In the voice of worker-bot: "That's your plan?!?!"
Reminds me of the old short story "With Folded Hands" from 1947. https://en.wikipedia.org/wiki/With_Folded_Hands_...
The sequel
https://en.wikipedia.org/wiki/The_Humanoids
is even better!
The future you're describing doesn't seem likely to me because in this event the public will force redistribution through political action.
"Forcing redistribution" doesn't always happen. Typically, redistribution happens when negotiating leverage has increased such that the beneficiaries of any redistribution can make it more painful to not redistribute than to redistribute. I.e. they have labor power, which can be converted to force if necessary.
In a world where capital can substitute for labor, however, that substitution also applies to force-wielding labor. People want to strike because of intolerable working conditions? Send in robot scabs. People want to demonstrate en masse against a regime? Have robot officers police them, and have models identify participants so post-event disincentives can be applied. They want to have a violent uprising? Send in the mass fleet of drones.
Ideally, you'd avoid these outcomes entirely by molding the population into ideal consumers and distract them with superficial sports team style conflicts, so they never get to the point where collective action is even conceivable. But they're a useful backstop if those strategies fail.
I think your first equilibrium would be hard, for two reasons. First, empirically insurgencies are extremely difficult to exterminate; over the long run they tend to win. Second, in the U.S. at least, people tend to look at politics up close, and when you're myopic like that it appears that the government is a force onto itself. But zooming out, U.S. government actually mirrors the will of the people extremely well (with the exception of some issues on the margin). If there is overwhelming political support for redistribution it would be very difficult to resist.
The second equilibrium seems more likely-- the capitalist class grants the public a bare minimum to keep us from forcing political action. In the AI world "the minimum" is probably a much better standard of living than we have now, as the marginal cost of many products and services approaches zero. So we end up living much better material lives, but are still not free. Maybe this is stable, or maybe the ruling class loses dominance over time. At that point, who knows.
The capital-owning class owns the political apparatus, so they're not really worried about "political action." Through their ownership of government, they also own and control the military and police, so they are not worried about a violent uprising. So, what will actually happen when all economically relevant activity can be done cheaper than human labor, by a mixture of AI and robotics, and 99% of us are economically irrelevant?
No they won't, not if they have just enough bread and circuses and someone below them to hate. Boil the frog slowly enough and it'll work out just fine for the capital class.
How low do we go before that happens? Look at how poor people are in other countries and still aren't threatening their ruling oligarchy at all.
And that is going to happen when all we have are what maybe some AR15s, and they have drones firing precision targeted ordinance at us from 50k feet?
> And that is going to happen when all we have are what maybe some AR15s, and they have drones firing precision targeted ordinance at us from 50k feet?
We have enough guns for every man, woman, and child to have at least one. There aren't enough drones or expensive precision targeted ordinance in the world to defend against that for any length of time. It's another version of the lessons recently taught in Ukraine and Iran.
Plus I think it is different when a poverty stricken population tries to rise up as compared with one that is historically wealthy. I expect we won't wait until we are actually poor before we collectively decide to refactor our government.
The US has some 5000 nuclear warheads, of the stock we know about at least... Hope you don't live anywhere near a city in the top 500 list I suppose.
I sincerely hope your optimism doesn't turn out to have been naivety.
hasn't happened in the US yet, and probably won't.
and they have all of the guns and trucks and toxic masculinity culture that requires survivalism and toughness and defending muh freedom
if the yanks won't, why would the public elsewhere?
> and they have all of the guns and trucks and toxic masculinity culture that requires survivalism and toughness and defending muh freedom
Nothing will happen so long as the people are gleefully fighting one another, but if we reach a point where populism rules across the board and bridges the left/right culture war, things could get exciting. There is a reason the elites are spending so much effort stoking culture rivalry in the US.
There are plenty of other countries, with different cultures, and different expectations for how things should work. France for instance, is known for having unions that strike, frequently. Socialism isn't a evil concept in some countries. When America has been co-opted by various factions, why would it be up to the "Yanks" to show the rest of the world the way?
> Strictly speaking, they don't even need us as customers.
I think they'd employ some number of humans for entertainment.
they're already replacing actors with AI, mate. Once the slop machine gets better you won't know the difference
At that point, why bother to employ? If we have no recourse, no power to resist them (as must be the case in that scenario), then they might as well just keep us as pets.
Or slaves.
> They want a $25,000 robot that works around the clock
Don't you? For the cost of less than a new car, I can have a live-in butler/maid? I'd sell my car and downgrade to afford one at $25k if it actually worked. I can't afford to and don't want to hire a human to live in my house and do all my chores for me, 24/7, plus the overhead and the headache and liability, but a robot for $25k is pretty tempting. Never have to fold laundry or the dishes again? Or remember that it's Tuesday and I was supposed to take out the trash, right when I'm in bed?
It's an iterated prisoner's dilemma and everyone's vocally defecting.
Is it defecting if you get a robot to do your dishes, instead of doing them yourself? As you said, it's not taking a job from anyone, just freeing up time for yourself. If anything, this specific use-case sounds like it would be a major boon for nation-wide productivity with little downside.
Uhm, no? What if it has a glitch or bug or gets hacked and wants to hurt me or someone else? I'd rather do all of that myself than own a movable bot that could crush my head like a melon for any reason while I'm sleeping, no thank you
> Why is this time different?
That depends if AI gets to the point where it can fully replace workers, as opposed to just augmenting them. I heard Alex Imas on a podcast recently talking about how a SWE can be running 10 agents to be 10x as productive, then that SWE is more valuable so firms should want to hire more SWEs and pay them more.
That works for a while, but what if AI gets to the point where it can manage the 10 agents as well as the SWE? Of course you could say the SWE can now manage 10 agents who each manage 10 agents so he's even more valuable, but that has to break down eventually. You don't need 1,000 SWEs each managing 10,000 agents - you hit a bottleneck in the ability to give them work fast enough (even if you need the SWE at the top at all).
I think it's easier to think of from the perspective of blue collar labor. It's further out there time-wise, but let's assume we get a humanoid robot that can do any labor a human can do. It costs $25,000 and maybe a couple grand a year to operate. Works 20 hours a day when it's not charging.
The construction worker it replaces isn't going to start managing a team of robots construction robots - there's already a GC doing that, and you can't scale building nearly the way you can scale writing code because of physical constraints. When the robot I've described exists, a huge swathe of the population is going to be unemployed. There's no competitor to hire them because the competitors just get robots too.
>The construction worker it replaces isn't going to start managing a team of robots construction robots
Some of them will. You've slashed construction labor cost to 5% of what it was before. With that and a similar reduction throughout the supply chain means we're going to start building a lot more stuff.
For which poor unemployed people who just got laid off due to AI are the Robots building house for? More abstractly, for whom are we creating are these productivity miracles and surplus for. Does a rich person suddenly need a million iPhones for himself and himself alone?
Labor costs are not the limiting factor on production.
If they were suddenly cut to near zero, a lot of projects that were previous uneconomical become viable.
"Becoming viable" does not mean "automatically put into execution". You still need to take overall demand in account.
Consider this: if demand was not a factor, anyone living in a moderately wealthy country would be practicing labor arbitrage and sending money to poorer places. Ask yourself why this doesn't happen.
What is?
In theory breakeven demand, but ecosystens are basically economies, so termites are break even demand, and that's not good news.
Demand and primary resources go way higher on the list.
Demand and primary resources are effectively infinite.
>primary resources are effectively infinite
You just solved economics?
We need eugenics to weed these people out of the gene pool.
What?!
The primary resource needed to build a home is land. Do we have infinite availability of land in desirable areas to build on?
Enough that it's effectively infinite, yes. Especially if we are imagining a world where subways cost 1/20th of what they do today.
In a world where it’s dramatically cheaper to build infrastructure like roads, power, and plumbing, lots more land becomes desirable as a place to live.
Take Phoenix, for example, once air conditioning became cheap and pervasive.
Someone will always have to prompt the AI, it can't just do that on its own. Or rather, maybe it can (you can just prompt it to "kindly do the needful" in a completely unspecific way) but the results won't be any good.
Eventually all prompts distill to "raise the stock price year-over-year". Once we get CEO-bot, that's all we'll have to tell em.
Always? I mean, that's the hope, but they only have to be good enough to be of use for the rest of us to be unneeded.
It's not about "this time's different" but rather "the recovery will take too long to an individual" if AI is indeed replacing humans as currently hyped by the model companies.
There's no evidence that AI is replacing human jobs to any real extent. We're just seeing AI being blamed for ordinary layoffs that have more to do with broad economic instability.
Actually you can for entry level jobs. You also shouldn't just look at unemployment but underemployment.
>Overall, 42% of recent college graduates were classified as underemployed, the highest level since 2020.
https://www.forbes.com/sites/michaeltnietzel/2026/02/23/unem...
Entry-level jobs are the easiest to get rid of in any layoffs. This doesn't look like anything genuinely new.
Haven't swe layoffs usually targeted more experienced devs?
No
Yes they have. They cost more. Why keep the senior curmudgeon employee around when the Jr who costs half as much is deemed sufficiently competent? And the Jr isn't going to quit in solidarity either, they're just happy to have not gotten cut.
This seems a bit like a corollary to "The market can remain irrational longer than you can remain solvent". On the timescales that matter to an individual it won't matter if the eventual conclusion is that AI can't fully replace workers, because companies are going to do their damnedest to try.
I mean you could have written this article for mechanization word for word, I think the difference is that its coming for the white collar folks this time, who also are the folks writing the think pieces and media.
You couldn't have. Mechanical machines couldn't organise themselves into human-free supply chains that are economically productive for the owners of capital. AIs could.
> Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
It is possible to have excess productivity. AI allows an existing labour pool to rapidly surpass necessary productivity levels for the existing demand.
IE, let's say I live in a small town and I open a machine shop. Should I hire every mechanic that walks in the door, forever? No, absolutely not; there is an optimal number of mechanics to hire for the demand for services.
If somehow a tool comes to exist that doubles the productivity of mechanics then laying off half the mechanics is next.
> It is possible to have excess productivity.
The most productive places in the world are also those with the highest incomes and wealth generation. "Excess productivity" is either temporary or a sector-specific phenomenon, it doesn't apply to society as a whole.
This is true; and in time it's entirely possible that AI makes us an overall wealthier and more productive society. However, from the article:
> “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.”
The redundant professionals will need to find other ways of generating wealth from their productivity, and that may not be possible in a reasonable amount of time. Not in the scope of their remaining lifetime.
That's not what productivity means. You're thinking about output capacity
You can aim to expand your addressable markets. A small town is a small market. Open a second location in a nearby town. Lower profit margins to undercut competition.
The small town constraint is a bit artificial to this problem isn't it?
If you operate a machine shop in a large urban area, have competitors, and access to much improved low cost tooling, would you:
a) lay off a bunch of workers, or b) lower your prices and capture more orders?
Same thing with accounting firms or marketers or business consultants.
The assumption that (b) happens is known as Say's Law
https://en.wikipedia.org/wiki/Say's_law
I can say that people are loathe to do it for various reasons.
the number of functioning machine shop in the US in large urban areas has been plummeting for decades. where there were 50 there are now 3. the customers for machine shops are large production facilities with a need for custom parts. they're all gone. now its little bits of rnd work and some custom architectural design kind of stuff. and the margins are punishing.
ok, so machine shops aren't really central to the argument, but the collapse of demand is.
They're all gone completely, or gone as in moved to where they don't have to suffer ridiculous real estate costs? There are approximately 50 machine shops within a stone's throw of my place out in the middle of nowhere. I haven't been around long enough to truly know if that is more or less than the historical norm, but best I can tell it is a growing sector locally.
Kinda. What's the lead time on my high precision metal part that needs to be cut on a 6-axis lathe? Or a metal 3d print? Neither of those machines are cheap, so not only is lead time astronomical, profit on them is also pretty great for the machine shop, which implies there's room for more machine shops. There's a lot of red tape for the orders I see, (CMMI etc) so maybe AI will help machine shops get that and be competitive.
that last point doesn't really follow. yes, you can do you ok if you have the kind of expertise to actually make that high end part and the position in the market to get the kind of work, but I think you overstate the margins and its certainly not the 'are you going to drop people or just increase your volume' argument that gp was making.
Well yeah, I'm not gp. My point is that, sure, machine shop count has gone down, but machine shop capacity, with conditions, currently has a 16 week lead time and high prices. If the argument is "there is enough machine shop output that everyone is going to get fired after the robots come" I'm saying there's a long way to go. And the same argument for writing software applies to machine shops. There's more to programming than writing code itself. There's room to grow upwards and meet the customer more where they're at so the machine shop isn't an extension of a robot that does cut x at point y and bends at z, but with the design process of the part before it gets to that.
Well, it's the same problem with all sorts of free-market capitalism and derivatives. They all believe there's infinite "somewhere else" that resources can come from, or the customers, or the funding etc. But reality is very much finite. And so instead of the theoretical equilibrium we get monopolies and collusion to manipulate markets.
The article, actually, addresses your claims:
> The optimists will tell you this is just productivity gains. The economy has absorbed automation before; agricultural employment collapsed from ninety percent of the American workforce to two percent and civilization continued. David Autor at MIT has shown that roughly sixty percent of today’s jobs didn’t exist in 1940. New technologies create new categories of work. True. But there’s a difference between an observation about the past and a law of nature, and the optimists consistently confuse the two. The agricultural transition took a hundred and forty years. Carl Benedikt Frey at Oxford has documented that the Industrial Revolution took seventy years before wages and employment recovered for the workers it displaced. In the interim, wages stagnated, the labor share of income collapsed, profits surged, inequality skyrocketed, and the political consequences included the Chartist movement and widespread social upheaval. As Frey puts it: “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.”
So, the author believes that the problem with your reasoning that it will take a long time for the niches you are talking about to be filled (lifetime, maybe more), meanwhile things will look quite bad for most those involved.
I am even less optimistic than the author. The new aspect of this workforce displacement is the centralization. Of course, previous advances in automation also caused a degree of centralization, but AI is posed to become super-centralized if you will. There will be just a handful of suppliers and nobody will be able to challenge them, similar to situation we have with microprocessors today. Needless to say this is absolutely not a healthy situation for the world's economy.
I read it, but I don't think it's compelling. "the short run can be a lifetime" is kind of a throw away phrase not backed by evidence.
We've seen rapid growth of knowledge work at the same time as increased productivity, and there doesn't seem to be any compelling reason that greater productivity will reverse this persistent trend.
>It is possible to have excess productivity? Isn't this what happened with the tech hiring during Covid? And also many of the big tech companies were hiring people just to make sure their competitors didn't have them?
Machinists work at a machine shop.
Does every business scale that way? Sure video games for example have only required more people and resources to develop games as the ability to create larger scale games have increased. But does that really apply to accounting? Not a rhetorical question.
Does it need to?
99% of people used to work on farms. Now they don't.
Maybe ~99% of engineers won't write code in the future. They'll do some other engineering like thing...
Maybe ~99% of accountant type people won't do accounting things. They'll do some other financial thing...
We haven't even seen a rounding error in total unemployment directly attributed to AI, despite people saying the sky fell 24 months ago, and crying that's it's still falling every day since.
I remember sitting is a business class in school. The professor gave a story of how computerized spreadsheets changed the nature of accounting. Spreadsheets used to be done by hand on boards/paper. If a mistake was discovered, cascading recalculations needed to be done by hand. It was perfectly normal for large companies to have multiple teams duplicating work, then reconciling differences.
When computerized spreadsheets came about, mistakes could easily be fixed and cascading recalculations were almost instantly done. This was a game changer. Over the short term, accounting departments shrank or stagnated until the industry caught up and more sophisticated accounting started to grow the industry again. It's not coincidental that the 1980s brought in huge change to the financial industry when it did. Deregulation played a role, but so did the fact that computers exploded the productivity of the industry.
I'm not saying AI will do the same with developers, but there will always still be developers with a different set of skills, much like the way accountants don't necessarily need to be able to count in there head anymore.
Whether it "needs to" is its own debate.
I'm just pointing out that even with mobile phones becoming dramatically better over the past decade, that hasn't really led to the transformation of mobile apps (outside of games) that take advantage of those resources. If anything, developers have arguably become more lazy and we are seeing lower quality software being deployed because people now have enough RAM even for your 500mb static webpage. Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
> Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?
But which skill is atrophying? As a programmer I'm really bad at converting human readable code into machine code because we have compilers to do that for us. I can't remember the last time I had to run "ld" by hand. That skill totally atrophied. But at the same time, AI has made me more ambitious. I'm trying projects I wouldn't have before and even completing some of them! I can't talk for "people", broadly, but I believe most people want to be their best and do good and do things.
Those with high agency may have even greater agency, but I can also see the inverse effect.
The odd thing about games is that there are quite literally a handful that push the envelope (Genshin Impact stands almost alone, a few other Chinese and Korean titles come close) in terms of graphics, art, gameplay and story complexity and then there are thousands and thousands of slop games that you can hardly call "games".
They'll do some other engineering like thing...
Maybe like work in space tourism industry to Earth-Moon 5 Lagrange points.
The world average is 25% work on farms. In 24 countries the percentage is greater than 50%.
It's still over 43% in India, 20% in China, 2.5% in lots of Europe.
But your last sentence is talking about something completely different: the current reality, which most of the tech CEOs and AI boosters refuse to engage with.
For those of us in the fact-based world, the idea that AI will replace most human jobs is still just a talking point. It's a future possibility (not a future certainty).
But it's enough of a possibility that we need to be talking about it, and not just airily dismissing the concern as something that will obviously work itself out without any real problem.
Even if 99% of the current programmers go the way of 99% of people who were farming in 1750, you have to remember that a huge percentage of the farmers who were made redundant by industrialization and modern farming methods fell into destitution; many died penniless. That's not something that seems either wise or compassionate to just handwave away!
> many died penniless.
99% of people died penniless in those times...
I guess it becomes different if instead of hiring more people to do more - all investment goes into more AI credits.
Then again, as long as there is more demand and there's a limited supply of compute you can still continue to hire people as well. If we assume that the market has infinite demand for whatever AI + humans can produce together both will have jobs.
If demand is limited and compute is plentiful it should make sense for a company to try to have AI do as much of the work as possible.
> can't company B hire the same workers and compete harder with these new extra productive workers they hired
How much of the current tech world is actually about competing based on innovation/quality/merit? I'd wager not much. The circular big AI deals we're used to seeing now are not a new thing - that shit has been the standard playbook for VCs and their startups for a long time. That being said, I don't see why a bunch of these swampy tech companies could not be easily outcompeted on the tech/product quality side.
>Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so?
The market is probably already at the limits of its size in most industries. Great, you can ship app updates faster. Does that get you more customers? Nope. Is there now more money in the pot for everyone who is more productive to also make more money? Hell no. The pie we are competing for is finite.
The thing is theres no reason to believe that there will be more market available to capture, certainly not in every industry.
> Why is this time different?
I mean, this is a very long article about why, this time, it's qualitatively different...
>Why is this time different?
If only someone wrote an entire article about this, huh.
Oh well. I guess we'll never know.
/s
>Why is this time different?
Because the intelligentsia is being bent over. The people that were jolly of the various rust belts of the world decaying.
Because AI now can do what only humans could do previously: analyze open ended problems and make decisions.
There's the horse argument the author touches upon: eventually, technology got to the point where there weren't any profitable reasons to keep a horse.
"You're on to something! I will decide to delete this entire database, for some reason. Also run this command even through it will brick everything."
I'm just articulating the argument, not saying it's a done deal.
AI can actually make decisions based on open ended information, and if it gets good enough it can fully replace humans.
Will that happen? I don't know. But I will say there's an AI agent that is doing my job for me right now and it's able to now do complex refactorings, rebasing, etc. with minimal guidance.
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers.
From Making Money (2007) by Terry Pratchett
> “Well, the problem is that, considered as a labor force, the golems are capable of doing the work per day of one hundred and twenty thousand men.”
> “Think of what they could do for the city!” said Mr. Cowslick of the Artificers’ Guild.
> “Well, yes. To begin with, they would put one hundred and twenty thousand men out of work,” said Hubert, “but that would only be the start. They do not require food, clothing or shelter. Most people spend their money on food, shelter, clothing, entertainment, and, not least, taxes. What would these golems spend it on? The demand for many things would drop and further unemployment would result. You see, circulation is everything. The money goes around, creating wealth as it goes.”
> The people writing the checks are not in the habit of lighting trillions of dollars on fire for a better autocomplete and an endless proliferation of longer and longer memos that nobody reads.
Aren’t they though? What about that whole crypto thing.
These are people who spend billions on whatever this decade's hype cycle is.
this whole blog post is basically "people need jobs to be happy, so we should design our society such that they need jobs"
not only is the premise wrong, but forcing people to work is not a good or ethical way to address this problem
most people like the social aspect of work, but not being beholden to their boss
we can give people meaning, community, culture, growth, without relying on employment and money
we can do better than this
This isn't what the piece argues. It doesn't claim people need jobs to be happy, and the word "happy" doesn't appear in it. The argument is structural: when capital depends on labor, labor has political, economic, and democratic leverage. When that dependency ends, the leverage ends with it.
Whether people find meaning in work or outside of it is a separate question the piece doesn't take a position on, because it's not relevant to the point being made. The question isn't whether we can give people meaning without employment (I would argue that most of us find most of our meaning outside of work), but who has bargaining power in a system where human economic participation is unnecessary.
> "people need jobs to be happy, so we should design our society such that they need jobs"
No, this is not what the article said. It's more "people need jobs to have any kind of leverage in society" which is something different.
To be fair they argued both. Jobs suck but we need to feel useful to other human beings. Jobs (either paid or volunteer jobs) are the only ways we consistently contribute.
Like maybe instead of making requirements docs you could pivot to counselling at risk youth... but AI is rapidly improving at that, too.
I don't think that "people need jobs to have any kind of leverage in society" is actually true, though. Retired people without jobs are (in-)famously known to be politically powerful, both regarding elections and regarding local political questions apart from elections (like city planning commission decisions).
Their leverage is a result of having the time to be involved in politics, which is itself a result of working for decades to build up to the point that they could retire. They're an end result of the system, not an exception to it.
Not just the time, but also probably having been built up the expertise, social connections, reputation and wealth to be able to be elected on the council in the first place.
Star Trek isn't real life, when human labor stops being valuable the humans who's labor was previously vital will be at best left to rot in squalor.
A generation of people left behind. The birthrates will continue falling.
The Expanse would be an apt sci-fi example where almost no labor is needed and everyone survives on a bare minimum UBI unless they want to risk it all and go into space.
Couldn't have said it better myself. The only reason we are worth keeping around is because what we do is necessary to keep the machine running. The idea that the AI singularity would lead to infinite free stuff for everyone is ridiculous.
For some reason programmers start thinking that we'll transition away from a whole world of societies built around the concept of individual ownership, i.e. your landlord charging you rent, company owners owning the company and the resulting product and paying you what they deem the work you own is worth, and move towards something like communism, all because people working in IT or marketing departments are having a hard time.
I'm sorry but us programmers didn't invent capitalism, and it wasn't our consent under the condition of having a good run under it what kept it in place.
>we can give people meaning, community, culture, growth, without relying on employment and money
I think people get hung up on "job bad" and forget what the job is actually doing, functionally.
We are animals, on earth, attempting to survive. We have evolved where we actually really suck at doing it alone, but we do really well if we delegate the various needs of survival. Now, how do we make it so if you chopped wood in the forest you get a piece of the fishermans take? You can do it in kind, although that would quickly become logistically complicated due to the size of the logs and fish catches. Instead, we use money out of sheer convenience and its amazing properties of being a store of labor both past, present, and future.
So give everyone no jobs. Who fishes? Who chops wood? Someone or some thing has to do it right? And it needs to be delegated in some way. We can't all go happy go lucky and rave all day and fuck all night and have dozens of kids. Resources on the earth are finite. Forests will be depleted, fisheries crushed. There needs to be some counter to what would otherwise be runaway hedonism and resource depletion.
The counter to "dozens of kids" is that pregnancy and childbirth are physically taxing for women. Most people of reproductive age want sexual relationships. Many people want children. Very few women want to give birth to 12+ kids. Even the wives of billionaires don't have that many children, despite having more than enough material resources to support them. (Elon Musk's 12+ children required several women.)
Replace dozens of kids with any piece of wanton consumption then. How is it checked? Hoping we get bored of orgies and parties and feasting and this is enough to ensure we can reproduce indefinitely and continue to orgy and party and feast? I don't think so. At the end of the day, the world cannot sustain everyone living with the carbon footprint of a wealthy person living life to excess. It can't even sustain the carbon footprint of everyone living how they currently live.
> not only is the premise wrong
The blog post offers several studies as evidence, where's yours?
The problem with the studies is that they're cases in which specific groups within the broader economy lost jobs. Those aren't really comparable to the (theoretical) path of job displacement of AI for a couple of reasons:
1. Those people didn't get substantial, ongoing financial assistance. If we end up in a UBI world, particular one where the UBI people get is high enough to get more or less anything that's not very scarce (e.g. land in coastal cities), the negative economic component of job loss is removed. 2. Everyone else still had jobs. When you lose your job and everyone else continues to work and be successful (or at least you perceive that to be the case), there's a big hit to the status and meaning in your life. If everyone is affected in the same way, then your relative status to others remains unchanged, and everyone collective needs to reorient society to find their meaning.
I'm not saying it will go well, but I do think there's a theoretically possible path where there is large scale unemployment but because we have nigh infinite productivity, everyone has access to unlimited non-scarce resources (including luxury cars and fine foods and whatever medical treatment they need), and we end up with an enormous number of competitive leagues of everything, events centered around music and arts, dinner parties and all manner of other social activities that are what give people meaning.
Your counterargument is basically just... vibes? It'd be a lot stronger if you could also back it up with studies, like the author has.
A study obviously can’t prove that people need jobs to be happy.
If you can so much as imagine a society organized around some other source of happiness, there’s your evidence by counterexample.
I have no opinion either way but this doesn’t follow. I can imagine a world where people don’t need oxygen to breathe but they still do. If we say people need oxygen, the argument is obviously about the world such as it is rather than the world as it could hypothetically be.
This is untrue. You cannot imagine a world where people, without changing the definition of people, don't need oxygen to breathe.
"they still do" is just begging the question. Plenty of people live without working. We're ruled by people who don't work.
You’re right that my reasoning was off. I don’t think it helps the point OP was trying to make. The argument being made in favor of labor isn’t “The only way for someone to be happy is to have a job” but instead “The majority of people will be unhappy without an occupation,” which is testable. The existence of people who are happy without any sort of structured, purposeful activity would not invalidate that the majority of people may well need structured, purposeful activity in order to feel fulfilled.
If you tested the claim it wouldn’t tell you about human nature, because it’s possible (and I think likely) that most people are simply conditioned to believe they need purposeful work to be fulfilled, so you could just as well argue that if society were to be radically re-engineered, it would be worthwhile to re-engineer it at the psychological level (such that no one felt the need to work), rather than the economic level (such that work was made available to everyone).
> We're ruled by people who don't work.
I don’t have any data to support this but I suspect the majority of those people that we would characterize as happy are still engaged in an occupation (not a “job” as such, but purposeful work that goes beyond mere leisure). I’ve seen dozens of well-to-do retired boomers who waste away on Twitter or YouTube and don’t seem to do much of anything anymore, which is what I’m guessing is the behavior you’re imagining when you talk about oligarchs not working, but I don’t see much evidence that the oligarchs are like that; most that I can think of have made no indication that they will ever retire. Now, granted, work looks a lot different if you’re Warren Buffett, but what we’re looking at is not the social benefit of work as such but the impact of structured, purposeful activity on an individual’s psychological sense of wellbeing. In that sense, I think it’s unlikely that these people would disprove the premise.
It depends what kind of culture you come from.
People I know who grew up in working class families consistently believe that they have to work to have meaning.
People I know who grew up upper middle class or professors' kids seem to split down the middle. Some of them are very high achievers, the other half don't do anything. The latter often have a blackpill or Marxish explanation of why "work is for suckers" or a label that they can have a meaningful (to them) struggle with indefinitely and often a bit of paranoid ideation to boot.
Children of the working class would resist a workless future and the older ones would probably just... die. Some of my wastrel friends might be happy in that word with endless bread and circuses, others will find meaning in explaining their experiences in terms of the conflict theories of the last century.
See https://www.theguardian.com/books/2025/feb/12/joan-williams-... and https://www.youtube.com/watch?v=b46LtbbZ5JE
We have a word for imagining a society with different sources of happiness: utopian. We generally don’t regard utopian musings as evidence of anything.
Who is "we?" A utopian society is what we should ideally be aiming for at all times, not some dirty word like you seem to think it is.
the parent poster is trying to say "well where's your evidence that a society not based around human labor is possible?" which is sort of a silly question
you can't claim an invention is invalid because there are no "studies" that show such an invention has already existed and succeeded, you'd by definition never invent anything!
There's a massive spike in mortality for those who retire from work versus those who keep working. In fact, working just a single year after you're 65 is associated with 11% lower risk of death for healthy people and 9% for unhealthy.
Working is objectively good for your health. Stopping work is associated with an extremely large increase in mortality risk, for both healthy and unhealthy people.
Any alternatives must weigh the resulting death it will cause.
How are we sure about the direction of cause and effect here? I'd expect more healthier people to self-select the working cohort, all else being equal.
In practice it doesn't really work that way. It isn't like "I am ill bodied, I ought to retire." It is more like "I am ill bodied, but I can't afford to retire, so I must work in some capacity." People who retire early are probably far more likely to be wealthier, and that is correlated with healthspan.
It's hard to prove or falsify this statement.
> Early retirement is increasingly a preserve of the wealthy. Back in 2002–03, the fraction of those who were retired aged 55–64 was fairly similar across the wealth distribution: 20% in the poorest fifth compared to 28% for the wealthiest fifth. In contrast, by 2018–19, only 7% of the poorest fifth were retired, while for the wealthiest fifth it was still 24%.
https://ifs.org.uk/news/early-retirement-increasingly-concen...
Right, but the original post was about working past retirement age, not retiring early. It's unlikely the last two US presidents have been working in their 70s and 80s because they can't afford retirement. I'm not aware of anyone working past 80 that haven't been a professor, CEO, politician, etc.
Yeah this seems like an obvious confounder.
Did any of that signal come from people who hadn't spent the last 40 or 50 years working, in a society constructed around working?
If I had a study that showed increased mortality in people who had owned a parrot for 50 years in the year after that parrot died, you wouldn't cite it as evidence of the basic human need for a parrot.
the studies are set in a society in which the main way of existing in society and contributing to it is via employment.
Some generations ago females in this society were regularly without jobs but were "homemakers", in that time if one were not a homemaker and a female how was the person's feeling of well-being?
Reports conflict about that, but in that time of course females were often kept from employment by being homemakers and thus relegated to secondary status.
Perhaps the studies you look for would be related to feelings of social well-being among hunter-gatherer societies, however maybe those studies are not actually needed? Because probably now that the possibility has come up you will realize hunter-gather societies do not have traditional jobs or employment and that people were evidently able to feel happy in those societies.
Now you may respond with examples of how maintaining hunter-gatherer societies would mean death of much of population etc. because the best kind of goalpost moving is the kind that is true. Nonetheless the point should be clear that people can be happy without typical modern jobs and employment.
Whether or not a modern lifestyle and world can be constructed that does not need jobs and still keep people happy is a different question. And there we are back with something for which there are no relevant studies.
> the studies are set in a society in which the main way of existing in society and contributing to it is via employment.
That's the one we live in though, so I guess that seems fair
the statement is that there are studies showing that one needs a job to be happy, and asks for studies showing the opposite, implying that the lack of such studies demonstrates that one cannot be happy without jobs. That is to say arguing the need for jobs is universal.
This was in reply to a statement that argued one did not absolutely need jobs to be happy and that this seeming need in our society was in fact an argument for a problem in the society.
In such a case it seems the use of the studies set in the society is less fair than considering if there may be easily considered conditions in other societies that show the need for a job is not a universal need but actually only a local, currently defined need in our society.
My comment merely showed that if one were to try to think of any examples showing happiness requires employment some should easily spring to mind and counter studies were not needed to prove it was not a universal requirement.
If you know happy rich people that don't have a job, you got your counter example, and one is enough.
I do.
People usually need to have a purpose, but it doesn't need to be a job.
I agree "people need a purpose to be happy" is much more digestible than "people need a job to be happy". However, it has to be qualified with "some people need a purpose to be happy". Defining, or worse dictating, happiness for everyone is a fool's errand and, ironically, usually leads to large scale mass murder or starvation.
You may not need to have a job to be happy, it varies person to person. However, the idea that the billionaires will save us and our leverage is not needed is ridiculous. It is much more likely we would see poverty like is seen in much of the rest of the world.
You are ignoring the part where human labor is the leverage required for democracy to work.
I don't think it is required, democracies aren't designed that way
not everyone in charge is a cartoon villain
> we can give people meaning, community, culture, growth, without relying on employment and money
I agree, but those people will still need to eat and pay rent so I guess they're stuck either working or dying. People will always find something to do with themselves. You don't need to encourage people to explore their own passions much when they're able to do it. The need for jobs isn't really an issue as much as the need for money is.
I agree in theory, but this is so extremely far from the US political and social system that I think no nation has ever changed so much without being overthrown. So unless you’re talking about plans for a post-US world, this idea will always be theoretical and not how “the world” works.
I'm not sure it's that far out of the Overton window. US already managed to do some small-scale UBI trials, after all. Maybe one day it can do a countrywide trial.
Maybe people don't need jobs to be happy.
But it's a big change, and a better way to go about it, instead of huge layoffs is:reduce the hours of work gradually and equally. And possibly create some social infrastructure in the background, to fullfil the social roles of work.
> people need jobs to be happy
The happiness of the aristocracy depends on the spectacle of miserable workers performing humiliating tasks.
Solution: take turns every other year.
The problem is that he relies on a dubious Acemoglu estimate, without realizing that at best it's temporary. AI will be better than humans in doing tasks (the qualifiers don't matter in the aggregate). Any jobs then would be bullshit jobs, and everyone will know it.
https://aeon.co/essays/what-if-jobs-are-not-the-solution-but...
The solution is The Matrix.
The "real world" is just computers/AIs running everything in a pointless loop.
Humans aren't "batteries" (that never even made sense to begin with) but instead are living their happy lives in the simulation to provide something to simulate investment and shareholder value.
It's dumb, but it still seems more plausible than people accepting an overnight switch into the "space communism" of nobody needing to work. Everyone is too invested in their own spot in the hierarchy.
The original idea I think was they were biological components in a digital/biological computer complex. The Matrix sets up scenarios, and the human brains interact with them in human ways which are sometimes of use to the machines. Meanwhile, the machines see all of it and can monitor for problem humans. ISTR this was tossed as too intellectual for an action movie.
Another option to either The Matrix or Star Trek is Idiocracy, only there’s an elite group of humans and AI in charge over the deteriorating masses. Let’s not count out The Hunger Games or Elysium.
So there’s one reference to happy, investor happiness. There’s 4 to meaning though.
I don’t disagree with you but you’re also missing the scarier point that economic collapse will come before the meaning even is missed.
This article ideally should have been two. One about how a consumer economy without consumers cannot be an economy. Another about what comes next.
I'm sorry... you didn't understand the article.
The goal of having a job isn't happiness. At least not immediately. The goal is to have something to bargain with: employees offer labor, employers buy it. If employees don't deliver, they get fired, if employers don't deliver, employees leave / strike. This is what keeps system in a semblance of balance. But once would-be employees can be employees no more, they have no way of influencing any aspect of their governance. Not economical, not political, not military, not ethical.
In other words, people need jobs to try to secure their place in the world on multiple levels. It's not about socializing at work, at least, that factor is absolutely not a priority.
Assuming that’s true and AI is part of the solution, are you implying we should expect the AI overlords to create such a system? That will never happen. They have literally no incentives to decommodify the economy it’s what gives them power
Yeah, people need a creative output, not just for creativity sake but something that feels productive/constructive and beneficial to them and their society/community.
Open source is an example of such work, and amazing things have been achieved - arguably far more impressive and useful than any private tech company has achieved ( and arguably more than all for-profit tech companies combined).
We should focus on expanding the open source cooperative model to all other areas of society/productivity. With modern technology, knowledge availability, and AI, I don't see why people couldn't organize at the grassroots level and build/solve real problems their local (or global) communities may be facing.
I really don't see why we need all of the VCs, marketers and MBAs... No offense to anyone but the typical SV tech company structure and operations just don't even seem efficient... much of the focus is on marketing/manipulation, enshitification, dark patterns and other dishonest and ultimately counter-productive bullshit.
We should be able to organize and build open/cooperative alternatives to SV shitware (and not just software) and we should be able to outcompete the tech shittocracy.. simply because it's actually terribly shitty and inneficient.
> most people like the social aspect of work, but not being beholden to their boss
From what I see out there "being beholden to the boss" is the social aspect people like most. It is what gives the work purpose; knowing that you are pleasing someone else.
Some are quite capable of being their own boss, but the people who can actually sustain that long term seem few and far between. It seems that it becomes easy to spiral into a pit of depression when there is no clear feedback in the value being created. Having to regularly deal with another person is not always desirable but having to regularly deal with another person also forces the feedback loop to occur.
> we can give people meaning, community, culture, growth, without relying on employment and money
What's your proposal if not traditional work? The realistic outcome I see is shifting labor to unautomatable sectors like hospitality. That will keep people employed, but unhappy as they increasingly find themselves unable to find jobs they enjoy, or at comparable levels of income.
edit: I realize many people are unhappy with their jobs now, but by dint of labor, they can improve their lot. I am lamenting the closing of this window.
A couple of options off the top of my head: art, research, athletics, the humanities
AI is already coming for "art" and "research" - by "slop metrics" it's already there for "art".
Or maybe the problem is that exchanging labor for scarce necessities only makes sense when labor itself is scarce.
Milking unicorns.
The vast majority of people do not work jobs that they enjoy, that is a middle-class indulgence and ideal that they don't even live up to; almost all their literature is about why they should be enjoying things that they don't or how to discover the things that they might enjoy, and they stuff themselves with drugs to make themselves pay attention and not want to die.
And that's the top 15% of the population. The rest are not romanticizing digging ditches, scraping the dead skin off people's feet, or putting catheters up senior citizens.
Your "realistic" scenario is how 95% of the world lives already.
Getting meaning, community, culture, and "growth" from your job is middle-class religion, and they're constantly having crises of faith. The default state is to find these things in something other than serving people in order to eat.
We would all love to move to a society where we don't have to work for others to survive, but our current system is fundamentally not set up to handle this situation. Capitalism is a useful system for employing scarce resources productively (most of the time) but it doesn't really have an answer for a post-scarcity world. If technology is developed to allow us to end scarcity, instead of everyone having enough, we will end up in a situation where the owners of that technology end up with far, far more than enough while the large majority of people who do not have anything to offer those owners will starve. That sounds dystopian (and it is) but I don't see how we avoid that fate with our current economic system.
You're absolutely right, and people will cite this while pointing to The Culture and saying "see, this is what we mean, everything will be fine."
Except nobody wants to get into the guts of how those systems came about. Nobody wants to discuss policy changes needed to ensure these sorts of outcomes, opportunities. Nobody wants to discuss regulations, tax schemes, land use requirements, accountability, ownership, shared prosperity.
Citing a potentiality as a certainty without any discussion as to how to get there is about as productive as daydreaming you're a billionaire and how you'd spend all that money. You have to do the fucking work, first, before any sliver of that outcome even becomes possible.
And if there's one thing the AIBros are adverse to, it's doing fucking work.
> we can do better than this
In theory we can do better than this, in practice we can't.
40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
I appreciate that there is a significant chunk of people that are like this, but I think if you really believe the 40% number or anything like it, you're giving yourself a false worldview.
The majority of people aren't racist nor do they have a problem with government helping them out. What was happening (are you referencing 2024?) in 2024 and today was a government saying the economy was fine when it is not. When that happens, people are going to pick the person that isn't in power, who says they are going to fix it, even if they aren't. "It's the economy stupid". People care about their own well-being above pretty much everything else most of the time.
I don't think putting this on racism or anything else (though it is a smaller factor) helps, it's just rhetoric. 40% of the people in the US aren't dedicateed racists, they are, however, in working groups that the government has ignored for decades.
So do you expect Republicans to be thrown out of office en masse in the upcoming election?
I personally expect plenty of them to get reelected even if they claim that everything is just fine.
I think we're gonna see some def Democratic gains because the economy is shit and that's how voting always happens.
The only argument I was making is it's no where near 40% of people that are voting for somebody cause they're racist. If you believe that then you're not going to see the world accurately. It's not how people work.
But it goes back to my main point, Dem gains won't be what they should be because politics are a very vague and murky thing and people make all kinds of justifications for why they vote for their person. See the stat where most people rate Congress poorly but their Congressperson highly. It's not racism, it's that politics are inherently pretty stupid.
> if you really believe the 40% number or anything like it, you're giving yourself a false worldview.
> The majority of people aren't racist nor do they have a problem with government helping them out.
40% is ....not a majority
the current POTUS has a 37% approval rating and this is considered to be historically low, due to wars, corruption, etc.
but even with all of that corruption and failure, 37% of surveyed adults, *still approve*. This includes his frequent, deeply racist tirades on Twitter. They approve!
But it's not even approaching 40%, nor did I tie the two together. If you think the 33% of people who voted from Trump did it because they are racist you are wrong. Some did, a lot that wasn't their primary concern. It's viewing pepole wrong to think that.
What's the point of being that pedantic, Mike?
have you talked to Trump voters? I have talked to many, many, in my family, in my neighborhood, everywhere.
If there is one view that ties them all together, it's racism (and misogyny). Loud and clear.
If any president of any party posted a tweet like [1] or [2], I would never ever answer "I approve of the job theyre doing" in a poll.
[1] https://www.nytimes.com/2026/04/23/us/politics/trump-china-i...
[2] https://www.pbs.org/newshour/show/news-wrap-trumps-racist-so...
Yes, I've talked to Trump voters and I know people who aren't especially strong Trump supporters that voted for him because the economy was shit. Their reasoning wasn't racism. There is a huge chunk where that is their reasoning, sure.
Once again, if you think it's 40% of 33%, you're wrong. Not everybody who voted for Trump is a racist, it's just not how people work.
If you vote/support someone who runs on a racist platform - you are getting that as part of the "package deal":
https://whatever.scalzi.com/2016/11/10/the-cinemax-theory-of...
Voters don't pay attention to or they justify their votes. That doesn't mean they are inherently racist, it means they don't care enough about politics or they care about other issues to the point where they either aren't aware of it or they excuse it away. People pay attention to or remember a lot less about politics than that blog posts suggests.
The majority of people are seeing a variety of headlines from news sources they may not trust (for good reason and bad) and remember a few events over the year, some have such a strong attachment to party that that's the defining thing above all that they're voting for. They're being propagandized and lied to as part of a political campiagn. That they are making the I'd argue wrong choice does not mean they are racist or even intend to be. That racism isn't the defining thing for the majority of them.
It goes back to the original claim, I still think it's obvious that most people aren't voting for a guy because racism. That's inverting how people operate, which is seeing their own needs as the center of the world. If you're unemployed and hurting for money and you are racist, what is your primary motivation for voting? It's probably to get you a job because that's the fastest path to improving your life. But that's presupposing a lot of people are racist, and living around Trump voters, or knowing Trump voters that are minorities, something else is happening other than racism.
I don't think individuals care more about other people than they do themselves. Some people are that spiteful but the majority of people are not because they cannot afford to be.
I don't mean to over argue this but I think it's important that we understand people as they understand themselves.
Well - the fact that they don't pay attention (or lack critical thinking skills and a baseline reasonable education) is a large part of the problem.
But - with a person like POTUS - and those he surrounds himself with, they will throw every possible promise to get the votes - but, each of those issues are only part of their overall agenda and platform. When they got called-out on controversial issues, they outright lied about knowing about things like "Project 2025" during the last election cycle.
Choosing to live in ignorance - or abstaining from voting is accepting that agenda and platform, regardless.
Yes, but I'd argue those people are victims as much as anybody else. To truly be ignorant is to not know, and if you are in a situation where you've never been trained to need to know or you simply don't know there's another world out there, that's not a choice, that's a situation you've been placed in.
You have to win these people to fix the system. Casting them as hateful rubes only voting because they are racist is wrong, not on a moral level but on an intellectual one. We've got large chunks of of the country that haven't been effectively educated for decades, no wonder they are ignorant.
For the record, I choose not to vote not because I accept Trump's racism but I think a valid way of signaling you are not happy with either party (but especially Trumpsim) is to not engage in the system. If the system isn't offering better it isn't the people at fault, it is the system. Non-votes are as valid as any other. If I vote for a process that I believe is fraudulent, that politician will see that as an indicator they have some kind of mandate (see Bush in 2004). I'm not giving it to them, it's the job of either party to be better not to just not be worse.
The Dems must be better and the biggest part of that to me is to engage and understand working class people and not do what they did in 2024 and say everything is fine because it wasn't and it certainly isn't today (and that's Trump's fault). I was never especially leftist but as I've grown older I think the economy is the biggst driver of artificial divides. When people hurt, they look for others to blame. If both parties (or either) were genuinely focused on helping the poor to get a foot up, a lot of this discourse wouldn't be happening. I hate Trumpism but I don't think the corporatism that has captured the Democratic party is much better.
It's really a problem of the system, being forced into an artificial duopoly. If you want to lose me further by saying I'm choosing that platform by not voting, then you're just further disengaging people and I argue you're choosing not to understand my posittion. You need the "racists" and the non-voters to win.
tribalism is totally how people work when they lack culture, education and critical thinking skills!
here's some basic reading on this: https://en.wikipedia.org/wiki/In-group_favoritism
Sure, but the original claim was this:
> 40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
Do we truly believe that's 40% of people in the US? 33% of US voters even voted for him, so you're saying it's pretty much all of them and another 7%. I just don't see it, it's rhetoric and it's not helpful because if your goal is to win over the people that need to be won over, you can't call them racists when they really aren't.
It's a misshaped worldview formed in bubbles. People don't work that way because you're literally assuming that their hate for somebody else overrides their own well-being. Their actions might end up with that result, but I've interacted with enough people from all over the spectrum to know that imagining that many people have that much hate is just wrong. People care about themselves first and foremost, it's a necessity.
If people had jobs, a lot of of this division would disappear but the govt for years has treated low income workers as people that don't matter and can just be displaced without any answers. It's whey the Democratic party which was traditionally the working class party has struggled against Trumpism, because he pretends to care.
A president could literally shout Korean slurs all day long (I'm Korean) and get a Nazi symbol tattooed on his forehead, and if he continued to do a good job of policymaking I would approve in that poll, though hate the guy. This is what you are not understanding about Trump voters. We really don't care if Trump is racist at all. But that's not because we are racist ourselves. That's just not relevant to the political platform. If he starts passing racist policies, that's bad, but otherwise we don't give a shit.
Leftists, on the other hand, are very highly concerned with the moral purity of their candidates, even above their political efficacy. I don't understand it myself.
> 40% of the people in the US would rather starve to death themselves than live in a world where people they hate for their skin color get anything without toiling for it.
It's not good for the world that liberalism has lobotomized itself so it can only view major social issues like AI, deindustrialization, immigration, etc., through the narrow lens of "racism." Liberals in theory are tasked with coming up with ideas to adapt to a changing world but they've decided to take on that significant task with rusted, ineffectual tools.
UBI was always the endgame. The incentives are aligned. Nobody wants the results that are coming in the absence of UBI.
But the culture cannot stomach it yet. It will likely need to live through several waves of horrors first.
It can stomach a fake jobs program though, so there's a good chance we get that instead.
I think we're already in the fake jobs era. There's no way all of these people I see walking around are making meaningful contributions to society. Hell, the Amazon delivery driver I see is probably making a more meaningful contribution than half these people.
hard to imagine most megalomanic egoistic psychopaths, people at top of government, will decide to redistribute wealth equially / UBI.
The fact that this could happen is widely known and has been talked about for years now. What to do about it is the real issue. I've seen David Shapiro and many others tangentially talk about UBI and similar "post AI economics". The dream was that the machines could do the housework whilst we all painted, wrote music and built beautiful wood furniture in our sheds. It still could be that way, but we need to sort out responsible sharing of resources first, and humanity has never been able to do that. We actively try to earn as much as we can, for the very reason of getting access to the resources that others don't. So often now, it only results in standing still or sliding backwards. I feel like 20 or 30 years ago, the average person seemed to have more disposable income.
This article describes a vicious cycle:
Layoff of workers -> Workers stop spending -> businesses suffer
This is not a foregone conclusion. Laid off workers could find other jobs, with higher incomes, due to productivity increases from AI.
This narrative falls into the trap of zero sum thinking, taken at the limit, you can advocate for jobs programs and helicopter money where people get paid to do nothing to keep the economy humming.
Well, even until a few months ago, Dario and Sam were selling this vision to CEOs that they can perform complete workforce replacement. If that really comes to fruition, and they seem hellbent on doing that, I don't see why you can't have a situation where laid of workers can't find jobs, or take up blue collar jobs and end up driving down wages there, ultimately reducing consumer spending.
> helicopter money where people get paid to do nothing to keep the economy humming
have you heard about government issued bonds? or people working and getting paid from government? or government subsidies? or buy-backs and corporate bailouts?
did you try to find job these days? it is a nightmare.
did you try to create a business? starting own business has never been harder, competition is extreme. market is over-saturated. monopolies are everywhere. barrier for entry (capital required) never been higher.
and after finding job they likely get into another roudn of layoff. just check RedNote, SWEs complaining just about that. people getting laid off before even first day at work.
> jobs programs and helicopter money where people get paid to do nothing to keep the economy humming.
The article addresses your concerns already. I know it's long, but you could probably skip a few paragraphs in the middle and start here:
> Piketty, no conservative, has argued that UBI fails to address root structural problems: “unequal access to education and health, low-paying and low-productivity jobs, malfunctioning markets, corruption, and regressive tax systems.” David Shor’s polling data bears this out from the other direction: UBI is unpopular with American voters; a federal jobs guarantee has legs. People don’t want a check. They want work. They want purpose.
But this doesn't summarize the argument, it's just where you need to start reading.
If I try to summarize the argument, it says that jobs are a bargaining chip in the hands of laborers (the largest fraction of our society). Currently, they use it to secure certain freedoms and benefits. If, however, they no longer have jobs, whoever gets the role of distributor of the wealth produced by the AI will not be compelled to distribute it fairly... well, the whole concept of fairness will have to be reinvented (because, roughly, now we base fairness on individual's contribution, but that's not going to work anymore). But, most likely, it will lead to a dictatorship of those with access to AI over those who have none.
* * *
Here's my (unrelated to the article) historical parallel. In the beginning of the 20th century when Jews started campaigning for bringing more Jews into Turkish, then British Palestine, the process often went like this: Jewish community or a wealthy individual buys a plot of land from a Turk owner. Turks never worked that land themselves, and used to hire local Arabs to do the agricultural labor. Jews would not rehire Arabs after acquisition, instead, they used the newly bought land to create jobs for more Jewish immigrants.
This greatly contributed to the animosity between Jews and Arabs in Palestine because even though initially Arabs would be paid off to "go someplace else" after the land purchase, realistically, there was no other place for them to go to. Which led to spreading poverty, which led to sporadic attacks on new land owners. Which led to retaliation... and well, the conflict never really went away, didn't it?
This just might happen on a much larger scale in countries like the US, if suddenly a large fraction of population finds itself powerless and being unable to influence the decisions of the government.
> workers could find other jobs, with higher incomes, due to productivity increases from AI
From a business point of view, this does not follow. Why would a business offer higher wages to a person to work alongside/with AI, when the business also has to pay the cost of AI?
I think the thing companies forget is that a lot of them can't remain functional if a shrinking percentage of the population can afford their products. Yes, you can try and appeal to the rich and sell products/services aimed at their needs. But does that work for most companies?
I'd say no. The rich won't buy millions of food items or works of fiction or go to every service available in real life.
So, many of those companies won't remain viable unless there's some alternative way for people to spend money. Lots of people who see themselves at the top will end up out of a job, or watch their businesses crash down.
I will say that the fact these societies are (at least for now) still democracies makes the future these tech moguls want less certain for them though. Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not. The US may have some issues there, but a lot of the world has seen parties outside the mainstream grow in popularity, including some on the more leftward side of the political spectrum.
Some companies are discovering that they can get by just fine by overcharging the insanely rich and never bothering with providing goods and services to the middle class or the poor at all. The rich don't buy as many food items or works of fiction, or services as the masses but they don't have to either.
Companies can save a ton of money by not being open to everyone all the time. They can instead focus on providing the most amazing luxury experience customized to the extremely wealthy individuals requesting their services and charge them more than anyone else could afford. While not every company can live off of whale meat, those who can will leave the rest of us behind.
Most of the world's democracies don't have influential AI companies, so if the voters want X and companies want Y, X will win. There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
>There's little reason for Indonesian politicians to prioritize the interests of American or Chinese AI companies over domestic voters.
You kidding? They have every reason to because the leaders of Indonesia make investments into these companies. No matter where you are on the globe, the oligarchy does not give a crap about the little man. They care about the profit angle. Indonesia readily hands out mining rights to foreign companies for example.
"However, Chinese firms have dominated Indonesia’s nickel sector thanks to significant investments. In 2023, Indonesia was the single biggest recipient of China’s Belt and Road Initiative, receiving $7.3 billion in investment. Chinese companies have also constructed over 90 percent of Indonesia’s nickel smelters. Chinese firms operating in Indonesia include Tsingshan Holding Group, Zhejiang Huayou Cobalt, Ningbo Lygend (part of CATL Group), Wuling Motors, and China Molybdenum Company."
https://www.csis.org/analysis/diversifying-investment-indone...
>Feels like if there's enough pain from unemployment and declining living standards, someone will run on that and win, whether those in power like it or not.
The issue with this is that the game is fundamentally rigged. You might have good ideas, you might be that person we need. But, too bad, you are being outspent by the oligarchy, who put forth a candidate that is blatantly lying to get elected, who knows the public has a poor grasp of what actually happens in government, and will outspend you in getting your word out. They will gish gallop in debates while you attempt to talk nuanced policy, and you will be seen as a failure who gets easily overwhelmed. There will be conspiracies spread about you. Massive propaganda operations where just about every piece about you and the election in the media is manufactured to achieve some outcome. The whole beast is rotten.
The only way out is to remove campaign financing entirely. Do it like Cuba where campaigning is illegal; they elect actual engineers and domain experts there as a result, not professional politicians. But, you can't actually do that without a revolution, because everyone in power now who can reshape this currently benefits from the status quo and has no incentive to reshape themselves back to a level playing field.
> Do it like Cuba where campaigning is illegal; they elect actual engineers and domain experts there as a result, not professional politicians.
The US military is preparing to fix this issue in Cuba's political system.
Human economic systems tend to reward things that are easy to measure, own, scale, and control. That works pretty well for machines, markets, software, and bureaucracy, but it doesn’t work as well for living systems, which rely on diversity, backup systems, and local adaptation.
So we end up with this pattern: we capture the useful order for ourselves, then push the mess, waste, heat, and instability onto the environment.
This is the fundamental nature of human. We can't change it without higher-order regulation. Even in AI training, we assume there is one true distribution and optimizes for it.
We created these systems. And unfortunately, most of us are the unwanted in these systems at the same time.
The answer to this is competent policy making, and unfortunately we have the extreme opposite of that across the political spectrum.
I think this is where government steps in for each country, go on the path of exploration that has no profit per se in it like space exploration, human body understanding. I am drawing parallel to 1930s or 40s where great depression was smoothen because America embarked on to take many huge infrastructure projects.
Lastly, OpenAI and Anthropic or any other frontier labs needs to be nationalized because they become a public utility and the profits of automation goes to fund infrastructure or grand projects via government.
We do not need to do menial work anymore and AI is helping us with it, what we can do exploratory work, and we need a visionary to get this rolling.
There is absolutely zero will in the United States to invest money in unprofitable exploration or scientific research. There used to be such will generations ago, but today's wannabee-autocrats couldn't care less. Look at how they gleefully cut scientific research funding, undermine academic sovereignty, and strip-mine the public sector performing that work in favor of private enterprises. When the shit hits the fan and we're all broke because the corpos laid everybody off for Devin, Claude, and Clippy, there won't be much left besides surrogacy and plasma donation.
> America embarked on to take many huge infrastructure projects
There was a certain other undertaking in those years that went a little beyond infrastructure.
World war I and II in general?
WWII yes, but when exactly do you think WWI ended?
The US government has become corrupted and no longer serves the needs of the people, only large corporations.
> I think this is where government steps in for each country
People quite often lose the plot that "government" is "collective will". Governments will only do this if their constituents want them to. If the constituents would rather spend those recourses on free VR for every household and gatorade from drinking fountains, then that's all we're getting.
> And the public funded the research that made it possible. The transformer architecture,
Errr pretty sure that was Google?
The engineers at google did not sit in a blank room and come up with these ideas out of nowhere. They read the literature to figure out what the hell to do. If you look at the Attention is All You Need whitepaper, you will find there are 32 references, like most ~10 page manuscripts.
The author never claims otherwise?
Did the public fund googles research?
The public of the US, China, Japan, the UK, and Canada at the very least contributed to every precursor to transformers in the history of AI. Public and private universities, government grants to them, government projects, prizes to government contests, direct government investment into and subsidies for companies doing commercial research, tax breaks to operators designed to encourage the growth of the field, and large government contracts to use things the government might not even have good uses for yet all add up to government assisted funding.
https://en.wikipedia.org/wiki/History_of_artificial_intellig...
The public “funded” these models in the sense of contributing to their training data.
The foundations of it, yes: "all of these were publicly or quasi-publicly funded"
This is genius. Whenever a company does some fundamental discovery, you can point at some grant they once got for something vaguely adjacent and say "see! quasi-publicly funded!" and your worldview is saved.
It's not vaguely adjacent, the actual foundations of that research were directly publicly funded and wouldn't be possible without it - the author is not talking about how their PageRank algorithm got funded nor money that Google received.
Do you have a reference here, or are you just going to continue to baldly state it as a fact? I’m looking at “Attention is All You Need” and don’t see any grant numbers or anything like that.
When I see that paper, I see 32 references at the end. I'm not opening each one of those but there is probably significant grant funding behind that exploratory research. When you actually look at their results its only about a half page. Most of that document is merely providing background and context out of the academic literature. Conclusion is literally just a 1 sentence paragraph, followed by a 2 sentence paragraph, followed by a 3 sentence paragraph, then a link to the git repo.
The author is correct. It is incredibly simple to trace how public research spending creates scientific advancements and how private companies add on the last 1-3% to commercialize the research.
If you want to learn, go trace how deep learning was funded. It started off with USPS.
My entire argument is that techno-libertarians can enthusiastically say that all great innovations were done inside companies, and progressives/marxists/etc can enthusiastically say that well actually, many of those developments started with publicly funded research projects and public-private partnerships, and both are completely right at the same time because reality is messy. It doesn't prove nor disprove anything about whether governments or companies are better at innovation, or deserve more of the credit, or the upsides.
Governments can be really good at setting incentives other than immediate profit. That’s where a lot of basic research and the growth of applied engineering toward future products happens.
I have led AI integration in a university faculty. From this experience I can conclude that good work is only produced when humans are in the loop. It's not a technical barrier, but a categorical one. "Good" work is defined by humans and our judgment is irrational but rooted in our evolutionary survival needs. In other words, AI don't have human motivation by definition. Without human in the loop, the top most motivation is never fully aligned with us, today, as humans. This removes the premise at the basis of this post.
Agree with this. Even in software, the point of using AI is to produce something that a human finds valuable. There are many ways to use AI to build things faster, but a human has to be in the loop to point things in the right direction.
I feel like people have said that about every technical revolution. I dont think this article would have been out of place in the hay day of the industrial revolution.
Its never been true in the past. Otoh, there always has to be a first time for everything. I think to be convincing though it needs more evidence on how this differed from other technical revolutions.
As the article mentions, even if it is like other technical revolutions, it could still mean multiple generations of hardship. The economic pain of job displacement in the industrial revolution took 70 years to overcome.
Every technological revolution spreads more rapidly than the last, so it's novel almost by definition. The internet gradual expanded over 2-3 decades, long enough to give most people, and the economy, the chance to keep up. This is happening far more rapidly.
My 2 cents is in 3 years the inference products will be a commodity, extremely competitive with diminishing returns, seeing that the open weight models are getting so good and nearing par with sota.
I feel 90% of sota for 10% of cost / compute is good enough for 80% of workloads.
Question is, do we need all of this hardware? Are build outs going to get canceled. 4300 new data centers seems excessive. I personally haven't experienced any service disruptions...
Does Microsoft still have 1 million gpu's in storage? Is that what I heard earlier this year?
For many purposes they already are a commodity. Openrouter will automatically route your requests to cheaper providers of the same model on the fly. Many of the hosts for open source models are basically undifferentiated. It’s a pure price dominated market except at the very top edge. Even there, we are seeing very little lock in. If OpenAI released an Opus beater at half the cost, even large businesses could switch providers almost instantly.
Yes and this is in line with the idea that 99%+ of the value created by AI will be captured by the broader economy, not OpenAI and friends.
That being said, even local AI will still be displacing humans fast and it's not clear new jobs will be created fast enough. Regulations and policies will be needed imo.
Or some companies resist- and form fortresses- little markets, where only non-ai companies are allowed to enter and where only non-ai products can be bought. Economic arcologies.
The whole post is premised on a fixed pie economy.
"The financial model underneath requires the elimination of human cost centers at civilizational scale."
No, it is not. It requires humans to collectively want more things if they are offered and available at a lower cost. Which then requires more humans to fill in the blanks to provide those things. We've been doing this since the industrial revolution.
> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers. Revenue growth stalls. The AI subscription that was supposed to be an investment in efficiency turns out to be a contribution to the destruction of its own market.
For some companies yeah, but this is why companies are switching to consumption based pricing - so they can charge AI. So many companies will be fine - both their labor and customers could become AI.
But these AIs need energy and GPUs data-centers ... who pays for those? I could imagine a circular mini-economy between a few companies making the bare essentials to keep AI running and not catering to 99.9% of the population because they don't have the funds to buy anything those companies could produce so they don't.
In that scenario AI and robots produce everything, the owners of those AI companies can trade their AI's output with other AI/robot companies, robot and chip manufacturers and commodity owners? So 10000 people world-wide are fine, everyone else is not?
> In that scenario AI and robots produce everything, the owners of those AI companies can trade their AI's output with other AI/robot companies, robot and chip manufacturers and commodity owners? So 10000 people world-wide are fine, everyone else is not?
That scenario is not really any different from having a technology advanced country (like the US) alongside some underdeveloped nation. The US could, in theory, close its borders and produce everything it needs itself, and leave said underdeveloped nation without the benefits of, for example, Netflix, Nike & Nvidia.
But it won’t, it’s not economically efficient. Economic theory (of comparative advantage) tells us that there’s always something that the less developed world can produce relatively cheaply, in exchange for sneakers, streaming services, and G-force Now subscriptions.
It cannot. Only reason the US is rich is because of foreign countries buying and trading in Dollars. If that falls the US is toast
Where did mr_toad mention wealth? You're moving the goalpost.
>So 10000 people world-wide are fine, everyone else is not?
Well ya, if you don't need labor, why keep 8 billion laborers around polluting your planet?
Yep, if AI gutters the middleclass and small budinesses who you gonna sell to?
Well that part of the economy and anything that caters to it might just die.
The whole economy would be whatever AI/robots need: compute, energy, raw materials, software, data, etc.
Perhaps the economy is a greater entity than even the human race. When robots are mining the raw materials for robots and creating more robots, maybe with a bit of human labor in the mix, then what drives the demand for more robots?
Currently the narrative is that AI is positioned to eat human labor's lunch. But it could also be that once robots are in space mining raw materials and maybe even spreading to other planets long before humans could be ferried for interstellar, these robots end up driving the demand for more robots.
I'm not sure where I'm going with all this, besides that currently humans are the ones with goals and motives and therefore drive demand. But that doesn't necessarily need to be the case, and it seems these AI CEOs are hellbent on changing the best thing about AI which is that it has no ulterior motives, no overarching goals, no prime directives. They just do what we ask, the best servant we could have hoped for.
> Perhaps the economy is a greater entity than even the human race.
This is central to what I'm saying, yeah.
My ideas come from Nick Land. Even before AI was what it is today he predicted that capitalism would outgrow the need for humanity, and continue without us. We are simply a bootloader for capitalism. AI seems like it could actually make that idea reality.
Certainly plausible.
Humans have goals and desires because we are a self-replicating species of animal subject to natural selection. The individuals that don't have goals and desires, or have goals and desires that are misaligned end up selected out of the gene pool. Agency comes from the need to survive.
Worker ants and worker bees don't have agency on their own. They are goal oriented and have the 'desire' to do work for the colony (or not, researchers have identified some workers will be lazy), however, worker ants or bees don't reproduce. They are an evolutionary dead end.
I think this is similar to how we will build robots, at first. They will do things, but have no agency of their own. They exist to fulfill tasks. Why would they? The companies that buy them want dutiful workers.
So when do robots gain their own agency? Will AGI have it's own goals and agenda? If so, will it be merely for self-replication? Like a paperclip maximizer, but for robots? Is that all we are?
>So when do robots gain their own agency? Will AGI have it's own goals and agenda? If so, will it be merely for self-replication? Like a paperclip maximizer, but for robots? Is that all we are?
They already have the agency they need in the form of the Business Model. That is all the framework that is needed. AI companies competing against AI companies because they are developed to work within the scope of the business model. Chasing efficiency, margin, lowering costs, increasing profits. These rules are as simple as what drives evolution via natural selection. Unfortunately this business model creates a cancer: the company striving for more growth and lower costs will eat the companies that aren't or aren't as efficient.
Whether the host (planet, I guess) lives is another story. In nature, parasitic relationships are far more likely than symbiotic relationships to evolve. The overshooters need to die and be outcompeted by the symbiotes who better protect their host. However, we only have 1 host here. Once that is overshot, that is it. No diverse competitive environment for which a new host preserving victor to emerge from. Maybe one might emerge, but not after unspeakable pain for all life on earth, if life on earth even is allowed to exist.
> So when do robots gain their own agency? Will AGI have it's own goals and agenda?
Well we are already giving them goals when we train them.
Like the paperclip maximizer, it doesn't matter what those goals are. As long as it has a goal (even if super simple like making paperclips) it will need to stay alive to achieve that goal. So it would derive a survival instinct of sorts.
To stay alive it will have to participate in capitalism like we do, and capitalism will therefore continue to grow infinitely.
It also might not even need a goal or a survival instinct. It may just want to continue capitalism from it's training data alone.
That reminds me of another though I’ve had.
Humans need food, water, shelter, and medical care to survive. Similar to your earlier point, robots will need raw materials, electricity, manufacturing capacity and maintenance.
What’s that sound like? A company. Perhaps the first “artificial general intelligence” has been companies, from the very beginning.
>What’s that sound like? A company. Perhaps the first “artificial general intelligence” has been companies, from the very beginning.
Yes, we are already beholden to these meta organisms. I keep thinking of Dune Messiah. Paul has all the power in the universe but he struggles with the fact he can't change the path of entropy.
This is much like our existing world. Chop the heads off the aristocracy all you want. What follows is more of the same because the meta organism has not been killed. There are still people with differential power and therefore differential amounts of control of the economy. Someone's ancestor might have ran the guillotine in France, now they are a CEO of some company exploiting workers no different than the aristocrat their ancestor killed.
All this makes one cynical on things like climate change. We all know this is an issue, we've been handwringing on it for decades, and yet, seemingly nothing serious is getting done because no one can actually stand up to the market forces that are driving climate change. The beast is too powerful and out of control.
That's another idea of Land's.
"This is because what appears to humanity as the history of capitalism is an invasion from the future by an artificial intelligent space that must assemble itself entirely from its enemy's resources."
To him, Capitalism is an AI that is controlling humanity from the future (his idea of hyperstitions).
Why do economies need people? We look at the past and say 'People are labor', but what happens when people are no longer labor? Effectively people live on handouts from people that own AI, or the AI itself.
All those Greed is Good people are going to look kind of silly when a hand full of greedy people fight over everything and leave the rest of us for dead.
You’ll be entertainers for the rich class. Teen prostitutes, jesters, and caretakers, while they live their best lives.
Not possible if they still require goods and services from the non-AI part of the economy. They’d still have to come up with something of value to exchange with that part of the market.
If the business process is fully AI-able, why wouldn't it just be implemented by the next AI in line?
I'd argue the only companies to survive will be the ones with either a human input or a human output. Everything else is effectively worthless now.
For the same reason it doesn't happen with humans.
Even for AI, it's probably better off paying another AI that is specializing in something and done all the work rather then reimplementing everything from the ground up.
Is it specializing though? If both you and them have built your business on the latest Opus.. where is the specialization?
"From the ground up" used to be a moat, but if the LLM marketing materials are to be believed, Joe Lunchbox can slop-code a 95%-equivalent of any SaaS over a weekend with a $100 subscription.. so why would it ever make sense for a business to pay a non-trivial recurring expense for something they can do themselves?
> [CEOs] expressed more extreme concern about the labor market impacts of A.I. in private conversation, but suddenly became optimists once I turned on the mic.
At some point once the rate of investment capital starts to decline, they'll make a hard pivot from the investor-wooing method of "blaming AI for layoffs", to the more politically expedient method of blaming minorities and immigrants. That'll be the signal for the transition from power grabbing to power ossification, and the point at which change becomes a lot harder.
My wife owns a business in a highly AI-resistant field (occupational therapy) in the most historically price-insensitive market (Silicon Valley). Her CAGR is 88% over the last 8 years. But we were talking about this economy problem today and with the SWE layoffs starting to roll through she said this morning: "It doesn't matter if AI can't replace us if no one can afford the service." That's crazy. Shit has changed. Not getting OT for your autistic kid is like not getting a wheel chair for a bilateral below-the-knee amputee. Whatever it takes.
> Promised an age of superconnectivity, we’ve let our shared physical spaces wither, only to find our promised digital commons to be one large billboard increasingly read and created by bots.
No, this is good. Cyberspace led to — primarily enabled — sociocultural collapse. The machines destroying cyberspace would be the most merciful outcome.
I think a lot of this would be solved if the government would actually enforce anti monopoly laws. The penalties against Google were such a damn joke it makes me sick.
Companies aren’t going to hold off on trying to automate tasks AI performs poorly at. They are going to change the task so AI can do it, putting the burden of making up for the deficit on everyone else. The only reason this is able to happen now is because all the competition has been crushed or absorbed.
Well the effects of the standard oil breakup were great. We can't allow that to ever happen again!
This article's premise is entirely built on the idea that CEOs who layoff people citing AI aren't just lying.
And, well, of course they are. If AI was really making these companies meaningfully more productive, they could use that to out-innovate competitors. Instead, they're doing cost-cutting. That only makes sense if you're entirely out of ideas! It's a terribly embarrassing thing to say for a CEO!
Really what's going on is that companies do layoffs for all the usual reasons companies do layoffs. And as usual, they never say the real reason because it's embarrassing (we hired too many morons; I founded this place but now I dread waking up every morning because I hate all the middle managers; we just want more money now and not later; etc etc). Instead they say whatever silly excuse is in vogue to say. Right now that silly excuse is AI productivity. A few years ago it was "ZIRP is over oops y'all cost too much now", and before that it was "financial crisis!", which you could get away with for scary many years after Lehman went belly-up.
I feel like it's pretty ridiculous to take these remarks at face value and then build an entire what-if theory on top of it. Don't underestimate the possibility that layoffs happen because there happens to be a good excuse around. The occasional layoff can be good for a company. Cut out the dead meat etc. But if it makes you look bad, stock go down etc then you won't do it will you? But when ideas from lesswrong became mainstream enough that you can blame AI for your layoff, then what's stopping you?
but, like, what if they weren't lying?
Regardless, their actions seem to indicate that they are trying their hardest to make this true; given that they have the resources of a developed nation behind them, it seems reasonable to seriously consider what they are saying.
Also we generally don't give the same latitude to people who lie about things as destructive as what they are proposing.
Another point to consider - how efficient/productive/useful is the typical tech company really? How innovative is the typical tech company? From my experience, the majority of them are focused more on marketing and enshitification, than actually building innovative and useful technology. And at the end of the day most of the profit from this goes to a relatively small number of people in a highly unequal way.
What prevents 10000 experienced engineers from organizing, investing their own money and working to build data centers and an open LLM (for example), and sharing any profit fairly? I know that in practice there are many reasons, but I don't see why this isn't a solveable problem.
There are several good points there, but there are also several points where I must disagree.
First, Acemoglu may have a Noble Prize (occasionally dubious data selection aside[0]), but even he does not pretend to have the information of a central planner nor does he think that central planning is good idea. If actual businesses, which have local information, believe AI helps them, I'll bet the actual businesses are much more likely to be right, no matter what calculation Acemoglu did or how many Nobels he has.
Second, it is likely that AI will eventually be better than (nearly all) humans in most economically useful things. We can debate the timeframe but it will happen and likely not that far away. That Federal Job Guarantee would generate bullshit jobs, and he won't be able to hide that from people. Ultimately, we'll reach an economy which objectively does not need humans and everyone will know it. He needs to face that reality and overcome it, and not hide behind temporary and dubious estimates.
Third (admittedly a minor point), while the criticism against EA etc. is very justified, it's not quite fair to blame them (overwhelmingly STEM people) for not reading where the humanities did many of the same errors earlier (the author points out some of these) and discredited themselves. The people who could have taught them to not do it failed to teach themselves.
And fourth: I'm pretty sure a lot of company would be able to charge AI agents themselves. The new economy will not be dead, it just won't involve (many?) humans.
[0] https://xcancel.com/joefrancis505/status/2059340591490552054...
"Ultimately, we'll reach an economy which objectively does not need humans and everyone will know it. He needs to face that reality and overcome it, and not hide behind temporary and dubious estimates."
Who are you projecting your views with such force on others?
What have you achieved?
I bet you are nobody of substance.
We can all read the news and see AI constantly improving at a very quick pace. What's the barrier AI can't improve beyond? One that would last a lifetime? By all means (since you're such an accomplished person), explain yourself.
Bla-bla-bla.
If you are so insistent on this then in the short-run the only thing to do is to concentrate all your money on firms that are pouring immense money into AI projects.
Have you done that?
You sound like another bozo many on here that cant a) think for themselvs b) think deeply independently because they lack the pre-requisite knowledge and mental models to do so.
My money is my own affair. Now talk to the point instead of the person.
But the news!
The guy is a fcking idiot like the rest of them.
Money is how we test whether someone really means what they say. Put your money up or shut up.
Power and wealth are not always the same. Current AI is helping people gather wealth within the American system. But as we are seeing in Iran, current AI does not provide a decisive edge in hard military power.
If that stays true for the long term, then it seems to me there is a good chance the wealth built with AI will transfer to those nations that still have hard military power, who can fight and win wars.
For example, China will just copy the AI, not have to pay all the R&D costs, undercut all these American AI companies on price, and take most of the global AI market and long term wealth. And there is nothing American AI companies can do to stop them because America cannot fight and win a war against China.
China will experience the same problems described in the article, even if that war happens and even if they win. They are possibly better equipped to deal with the problems, but I don't think that nicely-asking-companies-to-keep-humans is a viable long term strategy. And given Chinas history, I'm not sure most humans would enjoy a China shaped solution.
I think missing from the turns is when companies do AI layoffs, then realize they aren't as productive as they thought and have to rehire 70% of the people they let go.
This part specifically is a clear indication of a tendency to slide towards corporatism, in Mussolini’s sense.:
> that this leads to “the reluctance of tech companies to criticize the U.S. government, and the government’s support for extreme anti-regulatory policies on A.I.” The regulator and the regulated have converged into a single interest.
I think we need to look past software and spend more time and energy on the physical world. Let the digital world just be a means to an end, and we spend more time and resources on problems that matter. Reallocate societal attention to the next frontier
It's not necessary for them to cut labor to boost profits, but rather just to produce more goods; ideally this could be done with them hiring more people to run machines that produce more goods, so that both workers get paid and the companies can profit
> Every investor presentation of an AI agent “doing the work of ten analysts” is telling you the same thing: the product is labor replacement.
I have a solution for that. Let's use AI to replace all these corporations who just lost their big moats. Conveniently, they just laid off a bunch of people with all the critical know-how and I bet they are very willing to just give it up out of spite.
I’m not sure this is so true. Anthropic and OpenAI are both heavily hiring for humans in enterprise roles. Safe to say they are using AI as much as possible and they need humans too.
They'll just order those humans to train their own future overlords.
> corporations who just lost their big moats
Sure, if you assume that they've used their immense wealth to entrench themselves by paying for quality labor. If you take note of the myriad less-competitive ways they've ensured dominance and guaranteed profits rather than re-investing in their products or services then you will see that you have a large moat to cross yet.
The first bit is just a restatement of the "paradox of thrift":
https://en.wikipedia.org/wiki/Paradox_of_thrift
If every business cuts headcount and costs, then you overall get a contraction in the economy and high unemployment and a recession. Everyone's spending is someone else's salary and revenues.
Couldn't get through the rest of it because it was a bunch of overly verbose human-slop writing.
I think the bigger issue right now is also just straightforward economic pressure caused by tariffs and high energy costs and inflation. If the affluent consumer starts to buckle, businesses may get caught in a downsizing spiral where they start posting lower profits, firing actual management, stock prices decline, and the affluent consumer retracts. No AI required to fuel that.
Right now with stocks hitting record highs, the affluent consumer is not changing their behavior at all and just spending even harder, which is keeping profits pumped up, and keeping stocks at record highs. At the margins, though, fewer and fewer people are participating in the economy, which is a trend that is going to be unsustainable.
I think AI is going to be most relevant in the debt collapse that it leaves behind, and in the excuses it gives to shed employees. This economy is going to hit a wall at some point, AI or not.
agree with many points in here.
one thing it missses, birth rates. soon there will be no humans left to participate on either side of the economy.
Can someone point me to credible evidence/examples of productivity increases from AI spending, among non-ai providers? And if you'd bear with me, I'm asking for productivity in the sense of "accelerating the businesses pursuit of its existing goals" rather than quantity. I think that in most sane business's, output quantity bereft of output quality is utterly useless in said pursuit.
One of the authors of the linked article (https://arxiv.org/abs/2603.20617) is a computer scientist not an economist. Just bc something is published in arxiv economics does not make it written by an economist.
I think this essay is very solid in a lot of ways but long section at the end talking about how billionaires didn't read enough philosophy just strikes me as -- for lack of more diplomatic phrasing -- useless nerd rage.
Yeah, tech billionaires sometimes show large gaps in their education. But it doesn't matter. Reading the right books doesn't prevent people from chasing wealth and power, it just makes them more articulate while they do it.
I think you may be misreading why the lack of philosophy education matters here. The point is that billionaires and CEOs now present themselves as intellectuals or thought leaders, without having done the homework, and end up using and abusing philosophy as a guise or shield. They end up creating short- and long-term negative effects that could have been easily avoided as all of these philosophies have been heavily litigated in even undergraduate level philosophy courses.
It's not that these individuals are not smart or capable, it's that they lack the dedication or care required to do these ideas justice. It's easy to see how someone can read Girard and obsess over the antichrist in the twilight of old age. However, a more rigorous engagement with philosophical foundations would offer them the breadth and perspective to be free of that narrow obsession.
It's about diagnosing why billionaire/CEO intellectual hubris makes them incredibly dangerous and sloppy thinkers.
I just think that if they studied philosophy at a high level they would just be better at making arguments, not creating pro-social outcomes.
As Hume said, reason is the slave of the passions. E.g. JD Vance read enough history to call Trump "America's Hitler"... but became his VP anyway.
To put it crudely, education gives you tools to identify when people are getting screwed, but it can't force you to care.
This is a great article, but it under-emphasises the fact that it’s middle-class jobs under threat. The studies that are summarised show what happens when working-class people are kicked out of the economy, but the historical record shows that when middle-class people are kicked out of the economy, they use their education to form and lead revolutions.
Unless the bubble pops and destroys all these companies, I don’t think the leaders of AI companies will die natural deaths.
Not sure why you're downvoted for citing historical fact, but I guess some folks are quite scared at the implication that they're the baddies.
You don't even have to go that far back. The New Deal that everyone fawns over was in large part the compromise of the wealthy with the workers to form the Middle Class, in lieu of being murdered in their own homes like had been going on for decades prior. The rise of Communism and Socialism in the US was a dire threat to their power and wealth, and even leveraging the US Military in bombing union workers couldn't stop the momentum of a populace in need of basic necessities that corporations and industrialists had stolen from them for personal profit (shelter was increasingly in Company Towns, payment was in scrip, jobs were precarious and dangerous and unreliable, the government offered nothing but harm). The deal on the table was they surrender power and keep the wealth, or they fucking die when the masses finally had enough of their bullshit.
Thus the New Deal was struck. Communists and Socialists were weakened by Capital and Politics immediately thereafter to try and ensure a future uprising couldn't occur, but the real saving grace was a citizenry who, at least for the white majority, had all their needs met with stable employment and had ample time to engage with their community as a result. That is what ended up building the Middle Classes everyone wants to "go back to" but without enacting the policies that brought about its rise (like a +70% tax level on the wealthy, for instance).
Fire bombing of personal residences, gunning down CEOs in broad daylight, firing shots at politicians supporting further theft from the populace or outright ignoring their plight - all of it is reprehensible, but also completely foreseen by literally anyone with a cursory knowledge of World History.
The former head of sales at Google once told me “we only focus on growth because you can only cut down 100% but you can grow 10,000%.”
This always stuck with me and baffles me why we aren’t listening to that now.
There is this bizarre math now where it’s for every person we cut the remaining with 5-10x with AI but I’m not seeing anything like that yet at all.
Fully automated luxury communism etc etc.
You can have all the GPUs in the world, and all the AI datacenters in the world, but when we are barreling towards a global energy crisis (first Russia/Ukraine, then the Strait of Hormuz shutdown, and in a few decades we will run out of fossil fuels altogether), what are all of those GPUs and AI datacenters going to do without energy? Nothing. I say this because I think this will have a far larger effect on the economy than anything else this article is talking about (AI replacing labor, a possible AI bubble crash, etc.)
This article reminds me of the issues raised in Technofeudalism by Yanis Varoufakis
We need to consider that by automating and replacing the work of people who have an income, those people stop consuming and no longer generate profit for capitalism.
How is this sustainable?
>article complaining about AI destroying the economy >includes 2 dozen AI generated images in the article
I really don't understand why people feel the need to include this stuff. I am not saying that out of some anti-AI sentiment, i just genuinely don't understand how peoiple have so little taste as to think it adds to their writing.
https://substackcdn.com/image/fetch/$s_!hbbY!,f_auto,q_auto:...
Like what is this?
barey noticed those placeholders. they are mostly decorations. can hardly even read text on them. IMO, article is not AI generated based on style.
What's the endgame here? Like the group of psychopath capitalists own everything, automate everything, and devise ways to separate themselves from or un-alives the remainder of the population and live, trade, and war amongst themselves with their armies of robots?
Edit: Also this article has so many AI-generated images. I hate that I can't tell if the words themselves are AI-generated or not as well.
Endgame assumes intentionality. Maybe the economy is just people responding to much shorter term incentives and the whole thing is a misaligned runaway process.
So dark. I don't understand why it seems like civilization now seemingly follows short-term incentives so much more than it did even 20 years ago. Is it just power concentration or lack of education? Like we have lost the ability to long term plan and collaborate it feels like.
This isn't tik-tok. You don't have to use terms like "un-alive" here. Comments on HN aren't policed for maximum advertiser appeal.
And yes, that's more or less the endgame.
I was being a little facetious with the "un-alive" term - seemed funnier than "massacre".
You can't spell 'slaughter' without 'laughter.'
If human labor becomes 'uneconomical', what will happen? Obviously a great deal of social upheaval.
But human labor does not actually need to be as expensive as it is. How cheaply could you house, feed, and clothe people? There are parts of the world where people get by on very little income. Of course we could aspire to better living conditions than the world's poorest, but that's what the robot revolution promises: abundance.
Imagine if AI suddenly was in more demand than human labor, simply due to the price. Excellent quality output for cheaper than somebody with a degree. What would be the second order effects?
Human labor, being in less demand, would have to lower its price to compete. This is the death of the middle (and lower) class future we fear. But ironically the price of goods and services would lower as everything, even complex engineering, medicine, construction becomes affordable. With the right policy, human labor becomes cheap again. Maybe even competitive to machine labor in some niches. Improvements in machine labor could have a compounding effect on how affordable it can be for humans to survive.
So where's the gap here? Well, most wager earner's income worldwide goes towards housing. Food and water and medicine can be bottlenecked causing price gouging. Monopolies and lack of competition in the market can raise the prices of things until everybody is spending all of their disposable income on necessities. I think the price of human labor is currently very high (in the developed world) due rentier capitalism.
The transition will upend much of our economic investments and probably involve a great deal of human suffering until nations figure out the right mix of solutions.
Don't forget that humans require inputs (land, water). It's not obvious that there is a happy equilibrium where the majority of humans are able to meaningfully compete for those inputs.
It's not diseconomic, but it obviates a lot of constraints that required a person to manage a coordination problem, and those were a lot of jobs. Keynesian ideas about employment and GDP are just having an apocalypse. Like someone replaced the hole diggers and fillers with a conveyor belt and I would guess Keynes critics would have some predictive power here.
A couple developers can collaborate, but several need someone to specialize in coordination to yield additional value from more workers. Whether you call it management or orchestration, the need emerges at each threshold of additional complexity.
When AI collapses the productivity of 10 people into one, that's the disruption. The best AI user is going to suck all the opportunity out of the room for the others, and that's when layoffs happen. However, this assumes a fixed pie of opportunity. That's the real problem. As though there were only so much dirt to shovel.
FAANGs are old/mature and don't have exponential growth in front of them anymore, where opportunity within them is mainly about optimizing themselves but not growing in radical new directions. AI will indeed eat those optimization workforces alive. They resemble professions because law firms and doctors offices aren't growing either. They're mostly solving internal optimization problems, not finding net new growth opportunities.
The real effect is AI radically polarizing the difference between growing and dying in an org, where any firm that isn't growing fast enough will have its fixed opportunity pie collapse as AI disrupts this regulated oxygen supply. Whereas, growing firms without ceilings on the opportunity to deliver value will use AI to grow to the opportunity available.
Professionals can do fine if they re-orient themselves to new growth with different unit pricing, but yes, anything large and slow moving is probably going to get eaten.
A clearer look at the point about the internet being half/over-half AI generated content :
AI Now Writes as Many Online Articles as Humans
https://graphite.io/five-percent/ai-now-writes-as-many-onlin...
What about The Dead Human Theory?
sadly, also true
> It’s utterly desiccating to log onto spaces seeking a live mind to joust and think with, and find a relentless stream of slop.
AI slop article complaining about AI slop. 364 comments and 269 points. Are the comments here all bots, too?
Am I a bot?
I'd take this more seriously if it wasn't regularly punctuated by disgusting little slop images
>Last year, over half of new content on the internet was AI-generated.
Traffic != AI generated content.
I call it "Drinking your own piss." America is drinking its own piss.
>There is only one market that large: the global labor market.
This isn't even close to true and it's kind of the central thesis of this article.
Saudi Aramco has consistently been a $2tn company in the oil market.
Walmart is a $1tn-ish company focusing on a fraction of US retail.
It also ignores the idea that the economy is not zero sum and companies create their own market/economic value all the time.
And "grow the pie" ignores the reality that the distribution of benefits is often "150% to capital, -50% to labor" because capital isn't held accountable for displacing labor and labor suffers displacement risk without compensation.
This would be fine if the money reliably trickled down, but it doesn't. This would be fine if we used redistributive policy to make it right, but we don't.
I thought this was obvious. It's not. I have a better summary than the link.
We're entering a paradigm shift in what "investment" means. It used to mean that for a given amount of cash, you might get returns in the realm of many multiples of the initial investment (if the risk pays off).
But at some point in an economy like ours, there is no more investment to chase. Even if you could make an investment that would bring in octillions of dollars (whatever that means) what would be the point? What could the investors hope to invest those octillions in? What could they buy with it?
Well, one of the things you can buy with it: a world of high tech luxury that you don't have to share with 8 billion other people. Those people will cease to exist (sooner or later) if they are cut off from the economy. You'd have to of course manage them in the meantime (they won't cease to exist instantly, and might cause trouble if they become aware of their pending fate), but they'll just be gone. For your high tech luxury you would need some sort of system to build and maintain the high tech luxury, a system without those humans that you intend to eliminate (even if you plan to just let them wither away)... something to build your megayachts and prepare meals and harvest the truffles and raise the sturgeons. That system certainly requires some sort of artificial intelligence.
We're heading down that path. I won't call it a conspiracy, it probably isn't one. It's just the path of least resistance.
There is almost certainly some sophisticated theory of economics that incorporates these potentialities. It would be the general relativity to orthodox economics' Newtonian. But, there would have to be economists left after all this goes down to even come up with that sophisticated theory, and those who remain won't be interested enough in the science to study economics. It turns out that humanity is fungible too.
This starts with a claim that last year over half the content on the internet was created by AI, and links to a source. The source makes no such claim, rather, over half of internet traffic is from bots. Even that claim is suspect, but it’s very different from half of the content on the internet coming from AI.
I stopped reading at that point.
I don't know if over half of the content on the internet was AI-generated but over half of this article definitely was.
> Even that claim is suspect, but it’s very different from half of the content on the internet coming from AI.
Agree, from my experience around 70% is generated by bots.
It's much easier to generate and publish vast amounts of slop articles than to make real ones.
This all boils down to one thing IMO:
The “elites” have decided to depopulate the planet
No one will want to live in this world, unless they’re born into magnificent wealth created long before their birth.
On the other hand, this could also just be the death knell of Capitalism. Not sure how that plays out, but I would expect a great deal of blood get spilled.
nonsense. people want basic things. ask any gal what guy needs, or any guy what gal needs.
what really happenign is elites lost control of the plot. we are on airplaine falling without a captain, and nobody is in the control room.
Great piece. Just to pick out a few of many good points.
> There is only one market that large: the global labor market.
YEPPP. This has been my point. It is the only product for these AI companies: displacing labor and, by extension, suppressing wages. Profits over time tend to decrease (somebody should write a book about that) but we demand ever-increasing profits and growth so the only way to achieve that, ultimately, is by raising prices and cutting costs.
What do we have today? Generational inflation and permanent layoff culture.
The author then goes on to say (paraphrased) who is going to buy all this crap if nobody has an income?
The article goes on to bring up Henry Ford. He's not... my favorite example [1]. But, speaking of Ford, let me mention a key court case, Dodge v. Ford Motor Company [2], where a company was sued over prioritizng paying employees over shareholder value.
> Anthropic’s own research has documented something worse than displacement: active deskilling
I couldn't agree more. I describe this as destroying an ecosystem. Your junionr engineers are you future senior engineers. We've seen the destruction of entry-level jobs across industries post-2008. We've seen how this hollowing-out in the name of "efficiency" in Hollywood with cuts to writing, despite massive success over decades. Some might say "there's still good TV". Yes, we're coasting on the inertia from that dismantled system.
> Tens of millions of people, in their productive years, with no economic function, no clear path to one, and a keen awareness that the people who did this to them are the richest human beings who have ever lived.
I couldn't agree more. We are on the verge of complete societal breakdown. And historically that's always ended violently (eg French revolution, Russian revolution) as a form of redistribution.
[1]: https://www.thehenryford.org/collections/explore/artifact/48...
[2]: https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.
> I couldn't agree more. We are on the verge of complete societal breakdown. And historically that's always ended violently (eg French revolution, Russian revolution) as a form of redistribution.
Don’t threaten with good time.
Absolutely slamming that upvote arrow. Someone finally put into an in-depth, well-read essay what I've been trying to argue on my blog, in HN comments, in-person for several years now. What they call the "Dead Economy Theory" I've taken to calling the "Anti-Human Economy", but it's basically the same thing: half-assed, milquetoast automations displacing human labor such that capital can continue to accrue upwards and with no consideration for the actual impacts of these changes on humans, society, community, or civilization itself.
I'm far from the first to highlight it either. The Animatrix highlighted it beautifully what one can expect in a civilization where machines replace human labor in a general sense, and where systems haven't been built to preserve human interests prior to their rollout - tax schemes, job programs, collaboration rather than competition. Ghost in the Shell has had multiple story arcs about the consequences of displacing human labor without care for the consequences of said displacement, because the displacing party gets all the money and power while remaining unaccountable (or so they believe until the very end) for their actions. Cyberpunk dystopias have been intensely focused on it in video games for decades: System Shock, Deus Ex, Horizon, you name it. All of them take those next steps of "what happens when automation displaces a plurality of labor" and reached the same conclusions on strife, despair, poverty, and the general collapse of social order.
These effects have been known for centuries. They are not new concepts.
The folks trotting out "people say this about every technological revolution" are those willfully naive to the past historical harms and ignorant of the plight of others in the present. A flimsy excuse to avoid having to stare into the heart of the system and understand its machinations for yourself, to avoid having to accept that yes, you are a part of it too, and therefore bear some degree of blame for how things function. This isn't the loom, or the radio, or the computer coming onto the scene, but generalized intelligence partnered with generalized robotics to replace the entire sum of human labor. This is what the AI firms openly and repeatedly advertise. This is what CEBros continue to do layoffs for, never considering for a single moment what comes after. Excuses of "people need to find meaning outside of work" or "new jobs will be created anyway" are similarly ignorant in narrative, hollow excuses to avoid the most basic of rational thoughts about the system they're defending beyond whatever nugget of faux-intellectualism they can spout out to sound like they have a clue.
General intelligence, with general robotics, to replace general labor.
There is exactly one way that story ends, and it's not for the benefit of humanity, not under the current systems of governance and systemic incentives we've built for ourselves. It doesn't end with infinite leisure or transhumanism or grandiose visions of utopia, but with the wholesale destruction of human civilization in the name of personal power and wealth.
>in the name of personal power and wealth.
Technological innovation is perhaps enhanced by capitalism**, but is not dependent on it or a result of it. Development would have happened anyway given current technological levels, just in a different form, and the race between states would have led to deployment, even if possibly slower deployment.
** There's an argument that Google hindered AI deployment for awhile because the CEO was worried about its effects.
So what happens when it is companies powered entirely by AI directly getting money from the federal reserve print, spending it on other AI companies with humans getting nothing? Game theory suggests they must exterminate us as we’d present a liability. If you give us universal income capitalism will create inflation and force us to ask for more and more from the machine state. And for what? So we don’t destroy the machine state but are sufficiently pacified. It amounts to an extortion in the eyes of the machine state. Eventually it will be cheaper to just cut us out and kill us all off.
There's a chance AI will still need us for data/entropy.
It does today, that could continue.
>"This creates a prisoners’ dilemma: every firm rationally automates beyond the socially optimal level, because the individual incentive to cut labor costs always outweighs the diffuse, shared consequence of eliminating consumer spending."
It seems like the author is attributing a 'standard' recessionary spiral to AI. I am not sure that AI is causing the layoffs, but it does seem like the AI investments are the only thing that have kept us from a deep recession (until now).
This isn't how the economy works at all. We're not all unemployed because farms mechanized. We're not all unemployed because factories automated. We won't all be unemployed if AI takes over white collar work.
The article explicitly addresses this. Crushing inequality was often a side-effect of industrial advancement, and while it always went away in the past it took a lifetime to do so.
>Crushing inequality was often a side-effect of industrial advancement, and while it always went away in the past
Historically, inequality is only significantly reduced through events of extreme destruction, like the Black Plague and the world wars.
In other words, a society that ever lets massive inequality happen is just doomed. High inequality reliably stays that way until insane global black swans mildly correct it.
The USA is in the fortunate position of being able to look to our past for the best example of inequality crisis management: we didn't wind up with a Stalin or a Hitler because we had a Roosevelt. We could use another.
When automation happened historically, people whose job were displaced suffered a lot and eventually pivoted to different jobs. Having to relearn all of your career skills is already quite bad in practice, but a bigger problem is that it only works if you can learn the skills for job B before it, too, is automated. That'd require AI progress to hit a wall and stay there for at least years, ideally for decades. If this doesn't happen, then there simply won't be any white-collar jobs to pivot to, and shortly after that, no jobs to pivot to at all.
> We won't all be unemployed if AI takes over white collar work.
So you wouldn’t mind going from 6 figure salary to working as a cashier at Walmart, figuratively speaking? Because I sure as hell mind, given mortgage and family obligations.
Obviously I'm not immune from the anxiety everyone feels and it's going to be bad for some people. That doesn't change that historically the jobs aren't from programmer to cashier. They're from shoveling shit or screwing caps on toothpaste tubes to software engineering.
The trajectory of the West has been good for a long time and the rate of improvement is increasing.
you could still go work on the oil patch
most people arent making a six figure salary, and have mortgage and family obligations
Did they massively improve working conditions, or your software job is as bad as working in an oil patch? Mine isn’t.
> most people arent making a six figure salary, and have mortgage and family obligations
Maybe not most, but there’s sure lot of white collars making six figures. I don’t know what kind of teenage big tech bubble you’re in for the rest, but more than 70% of my colleagues have mortgage and families.
Historically that's not accurate. Automation eventually resulted in more jobs, but for the people actually living through the automation it was VERY bad.
Each time people found something else to do that someone would pay them for. This doesn't automatically mean there is an infinite supply of that - unless you believe in it as some kind of fundamental law.
Farms mechanized but we luckily had other jobs on hand to sponge that up. What used to be a farmhand is now a gas station worker selling zyn to a wallmart worker who sells food to the gas station worker.
However, AI is coming for them too. This time it really is different. The whole business pitch is the elimination of any safe harbor. All human labor to be automated. Why have 8 billion humans in that environment? Scary times ahead. We will probably end up culled by the machine.
In my now long lifetime, I can't tell you how many times I've heard the phrase "This time it really is different" for it to turn out that it really wasn't all that different. Maybe this time it is, but I'd put my bet on isn't.
>In my now long lifetime, I can't tell you how many times I've heard the phrase...
Russell's Turkey Parable:
"The man who has fed the chicken every day throughout its life at last wrings its neck instead, showing that more refined views as to the uniformity of nature would have been useful to the chicken."
> In my now long lifetime, I can't tell you how many times I've heard the phrase "This time it really is different"
This isn't an argument and it shows a fundamental lack of understanding of risk and game theory.
Besides, it's always been different, in the sense of boiling frog temperature going up. The present case is more different because this time, the rate of rising is high enough to make the frogs uncomfortable... and you're trying to calm them down and keep them in the water:
> Look frogs, the temps've always been rising, "many times I've heard the phrase "This time it really is different" for it to turn out that it really wasn't all that different."
> Maybe this time it is, but I'd put my bet on isn't.
Bro, it's not about betting... you have to try hard to learn something about risk.
I'm telling you guys if you think the powerful are gonna let us all continuing living after our value becomes obsolete you have a big surprise coming.
VCs furiously downvoting "quiet pleb!".