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From the point of view of classical economics, AI increases the productiveness of capital, and certain specialized kinds of labor (e.g. creating and improving A
by QuantumChaos 12y ago
From the point of view of classical economics, AI increases the productiveness of capital, and certain specialized kinds of labor (e.g. creating and improving AI).
While this increases the total output of society, it also increases inequality.
We already have in place mechanisms to deal with inequality, namely income tax and welfare. As the total output of society grows, we will be able to afford more generous kinds of welfare, until eventually we probably settle on a negative income tax scheme.
Note that a correctly designed welfare system wouldn't result in lots of people living on welfare, but rather everyone working fewer hours.
So I imagine that the future could be quite good, as long as our methods for redistributing wealth are able to keep pace with technological change (and there are some great examples to follow in the Western world, e.g. Scandinavia, Australia and NZ)
- ztko 12y agoWhy do you say that AI will automatically increase inequality? Not necessarily disagreeing but interested to hear your thoughts. I'm also wary of the impact that AI and robotics may have but am cautiously optimistic. While I do think that many jobs will be displaced by automation, I wonder if we'll also see a labor revolution or rather emergence of a new sector/type of jobs. E.F. Schumacher talked a lot about the dehumanizing nature of many jobs, and I think in a perfect world automation and robotics could take over the repetitive or dangerous jobs, freeing those workers to take on more fulfilling and important jobs.
- altcognito 12y agoI hope as you do but.... Small scale tools for small groups and individuals might be more flexible but will absoltuely be less prodigious/efficient than large scale factories and therefore margins and pricing will always put the little guys on the edges of the economy, thereby exacerbating inequality.
- lilsunnybee 12y agoAutomation increases the benefits of owning capital over providing labor, in ever growing proportions. The less people are needed to provide labor, and have any resources distributed to them at all, the more fruits accrue solely to capital-holders.