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How exactly are the coastal PMC types going to get rich in a way that doesn't enrich the rest of us?
If AGI can manufacture goods much more cheaply, then that means cheap goods for everyone. If AGI can provide services for zero to low cost, that means cheap or free services for everyone.
While there are situations where individuals can get rich at the expense of the masses through rent-seeking (I'm thinking someone like Carlos Slim monopolising Mexican telecoms) the overwhelming majority of billionaires got that way by providing something useful to the masses. Elon Musk sold luxury electric cars, Jeff Bezos provided an online retail experience far superior to anything that came before it, Steve Jobs sold consumer-friendly, well-designed electronics.
If Sam Altman ends up a trillionaire, how exactly could that leave the rest of us poorer?
Bezos, Musk, etc. have fortunes but that money is not making its way to me. I have even less reason to think that Altman as a trillionaire is going to mean the lake fisherman in Tanzania suddenly getting thousands of dollars extra per year as a wage. Cheap goods/services for everyone is a nice-sounding idea, but it relies on "I have enough money as disposable income to purchase those goods/services". If I lose my job because the company replaced me with AI, it doesn't matter how 'cheap' the next model iPhone is because now it's made by AI, I'm not going to be buying one.
To the degree that they have cash it is making it's way to you about as much as any other cash, as for their wealth, that they created, they did so by creating lots of utility. I can order something online and have it the very same day. That's awesome. Thanks Jeff. You deserve all that money for doing something so awesome. You earned it! Thanks Elon for the cool cars and internet!
These are things people want (we know this because people pay them for these things).
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If you've ever used Amazon then you have benefitted from Bezos' success. You've benefitted from the consumer surplus generated by Amazon's existence. Whether that is from cheaper goods, faster delivery, greater choice, more convenience, the fact that you've used the website demonstrates that you've derived value from doing so relative to what else was available. The same goes for any other company that you've ever interacted with.
And if everyone's jobs get replaced by AI without any financial recompense, then nobody will have any money to spend on these companies that have done the job-replacing. They would need to compete with eachother for what small purchasing power remains, which means lowering prices to near-zero. This is easy enough when your labour costs have been reduced to zero by the AI that took everyone's jobs.
AI represents a potential increase in productivity, and increasing productivity is literally what economic growth is. From the industrial revolution to now, increasing productivity is why we were able to escape the zero-sum world that existed before.
Whether it destroys the world is another thing, of course.
Just because there are no humans in the loop purchasing or selling goods and services doesn't mean that companies are out of luck, they'll merely sell to each other, with a fully automated economy akin to a Disneyland with no children.
Automated Tesla sells electric vehicles and batteries to companies providing transportation to automated mining companies that sell ores to automated refining and manufacturing companies that sell it to someone else. There doesn't need to be any humans involved anywhere, barring those who own a stake in such entities, and the loss of human purchasing power from automation will mean fuck-all.
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Why would they need to sell goods to people with no purchasing power... or combat power considering being a soldier is also a job? Economics ends if there is no scarcity.
Why wouldn't they build giant theme parks for themselves, or clone and cater to themselves, or run off to explore space, or have fun in VR in a giant underground fortress guarded by robots? I believe that power corrupts, that absolute power corrupts absolutely. A world where one or a few men control all wealth and power is not going to be good for those without wealth or power.
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I can think of a few ways.
Fast and constant inflation absorbing the productivity gains of technology into asset prices.
AI making society super productive but a loaf of bread being 10 bucks and only the richest being able afford land. You'll own nothing and you'll be happy with UBI in exchange of guarantees of control, which is the model of Altman's other venture, Worldcoin.
A rising tide lifts all boats in a free market. We do not live in one.
If the current marginal cost of production for a loaf of bread is about $2 (just looked at the website of the closest grocery store to my current location), and AI makes society super productive, do you think the real marginal cost of production for a loaf of bread will be (a) Less than $2, (b) About $2, (c) Greater than $2, but less than $10, (d) About $10, or (e) Greater than $10?
If you chose one of (a-c), why do you think that the price of bread will not trend toward the marginal cost of production, as is the standard result in economics for goods like bread?
If you chose one of (b-e), why do you think that an across-the-board increase in productivity will not reduce the marginal cost of production of bread?
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This appears to be pro-gold/pro-bitcoin. But in a lot of those graphs, you can just as easily pick ‘81, then you have the sinking interest rates as the nice correlation. The fed ordered that assets be more expensive for 40 years, and people wonder why labour isn’t getting its share.
I'm aware there's also that narrative going, just provided the Austrian side (which would actually agree with that assessment of the Fed's policy) but Marxists are also quick to point out that productivity gains don't go to the workers but to capital. They point to different causes, but they too have a possible story for capitalism not lowering inequality. With or without using surplus value as a framework.
In any case I don't think the assumption that productivity gains make everyone wealthy necessarily is warranted.
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