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Culture War Roundup for the week of February 17, 2025

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Why do we need UBI? If AI ends up being as cheap, efficient, and transformative as people want to claim, it should drive down the price of all goods to near 0.

I think what's more likely to happen is AI compute is going to be an effective currency replacement. Rather than using fiat dollars, it will be based off of the amount of AI runtime it takes to complete a task for the given runtime/ energy calculations of any given workload. Assuming AI can replace all jobs and produce a quality of life better than any human machination can contrive, then the human inputs for the production of goods and services should be 0.

If AI ends up being as cheap, efficient, and transformative as people want to claim, it should drive down the price of all goods to near 0.

The value of goods is not based solely on labor -- that's Marxism. The value of goods is based on scarcity, which cannot be alleviated by AI (even with advanced robotic labor) for two reasons:

  1. We live in a physical universe with physical limitations, on a single molten rock with limited, albeit abundant, natural resources. The price of the phone in your pocket is based in part on the physical materials used to assemble it, and any use of those has an opportunity cost. The glass in your iPhone can't be used in someone else's Android. So both the raw materials and the assembled goods have an inherent value because they are scarce and alienable.

  2. Human consumption has a huge status component. Even if AI-powered robotics could produce any and all goods, human labor and artistry will still remain valuable, perhaps even moreso, because of its scarcity. Inevitably there will be profit to be made in appealing to conspicuous consumption, and so profit there will be.

The income of most humans in such a scenario would also be nearly zero. Cognitive and physical labor would be entirely devalued.*

I'd expect anyone with even a modest amount invested would see it soar, and even savings would elevated in terms of purchasing power.

The question is whether this will be enough.

*Even the absolute minimal human existence requires about a hundred watts of power and raw biological feedstock. You can't lower your wages lower than this without dying, and every dollar that could be spent on food and shelter would be much better spent elsewhere. A comfortable existence would be significantly more expensive. I think in a worst-case scenario, humans would be killed outright, slightly less worse but awful would be us being outcompeted and left to die by an uncaring ASI, in less bad scenarios marginalized and unable to meaningfully engage in agency.