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> If AI eats profits instead of grows them, then the economy shrinks right? No, why? The economy is bigger than company profits. Eg there's workers' wages an
by eru 4mo ago
> If AI eats profits instead of grows them, then the economy shrinks right?
No, why? The economy is bigger than company profits. Eg there's workers' wages and customer surplus and investments etc.
- rurufjcir 4mo agoBecause companies need earnings growth and they’ll fire workers to meet those targets
- eru 4mo agoFirings workers doesn't make earnings grow in general. And company don't _need_ earnings growth. That's why many companies buy back shares or pay dividends instead of always investing retained earnings.