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I am yet to see any strong micro econ or macro econ mechanistic explanation detailing how AI is going to create more wealth.

crazygringo 1y ago
Technological advancements create wealth by increasing efficiency. Not really sure what deeper explanation you're looking for? It's no different from the cotton gin or steam engine or railroads. Obviously, if you don't think AI results in greater efficiency then there wouldn't be more wealth. But that's a tech question, not an econ question. The economic side of things couldn't be simpler.
- jrflowers 1y ago
  > by increasing efficiency Efficiency of what exactly? And how do they do that? All of the NFT-turned-AI bros insist that the answers to those questions are “everything” and “by being awesome”, which sounds more like the thinking of someone that’s convinced they’re on the precipice of inventing magic or figuring out how to directly petition god
  - whatshisface 1y ago
    Efficiency in terms of dollars per app or page of filler content.
  - lnfromx 1y ago
    Looking at e.g. the Solow Model better technology will indeed increase efficiency as the output per worker increases which will lead to economic growth. However I think you are right. This is an oversimplification with regards to AI because in the end its also about which products are being impacted. Also the product quality is left out in that scenario so it gets tricky. E.g. I would personally not like to read even one AI generated book as of today.
stocksinsmocks 1y ago
Paid services becoming basically free is wealth creation. You have the goods but none of the old cost of production. This is patently obvious, so I assume there’s some well-practiced remarks inspired by or borrowed from early 20th century socialists you would like to share? HN comments wouldn’t be complete with an homage to the class struggle. I would rather take the win and be happy about it.
- deleted 1y ago
  [deleted]
tim333 1y ago
Robots make stuff. Or in econ speak the cost of production declines.

crazygringo 1y ago

Technological advancements create wealth by increasing efficiency. Not really sure what deeper explanation you're looking for? It's no different from the cotton gin or steam engine or railroads. Obviously, if you don't think AI results in greater efficiency then there wouldn't be more wealth. But that's a tech question, not an econ question. The economic side of things couldn't be simpler.

jrflowers 1y ago
> by increasing efficiency Efficiency of what exactly? And how do they do that? All of the NFT-turned-AI bros insist that the answers to those questions are “everything” and “by being awesome”, which sounds more like the thinking of someone that’s convinced they’re on the precipice of inventing magic or figuring out how to directly petition god
- whatshisface 1y ago
  Efficiency in terms of dollars per app or page of filler content.
- lnfromx 1y ago
  Looking at e.g. the Solow Model better technology will indeed increase efficiency as the output per worker increases which will lead to economic growth. However I think you are right. This is an oversimplification with regards to AI because in the end its also about which products are being impacted. Also the product quality is left out in that scenario so it gets tricky. E.g. I would personally not like to read even one AI generated book as of today.

stocksinsmocks 1y ago

Paid services becoming basically free is wealth creation. You have the goods but none of the old cost of production. This is patently obvious, so I assume there’s some well-practiced remarks inspired by or borrowed from early 20th century socialists you would like to share? HN comments wouldn’t be complete with an homage to the class struggle. I would rather take the win and be happy about it.

deleted 1y ago
[deleted]

tim333 1y ago

Robots make stuff. Or in econ speak the cost of production declines.