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Don Klemencic's avatar

"Capitalism needs ordinary people to carry out the production of the ingenious person’s ideas. While these people may not have this ability to invent new things, they must be respected for their labor and input and rewarded with a livable income."

Fay, this part of traditional economics may be changed over the next two decades or so. AI, now rapidly increasing in capacity and sophistication, and robotics (AI+R) are currently creating more jobs than they replace, but when AI becomes smart enough and robotics (used to build more robotics) becomes cheap enough, we face a momentous change the folks at RethinkX call "The Labor Disruption".

At first, the amortized cost of AI+R will be, conservatively, around ten dollars per hour, but as it progresses this will fall to a dollar per hour, ten cents an hour, ... The supply side of economics has traditionally been demographically limited by the number of capable workers. This limitation will by flung aside by AI+R. But the demand side of economics has traditionally depended on wages paid to workers to support their needs and generate demand. This will be destroyed, and will have to be replaced in order to have a functioning demand side to the economy. Something like Universal Basic Income (UBI) becomes essential.

The sociological impact of this will be cataclysmic. People who regard their jobs as their "purpose" will need to radically rethink this. Education (eventually supported by personal lifetime AI tutors, from kindergarten to doctoral level) will need to refocus from producing productive workers to supporting development of personal talents and interests (Maslow's self-actualization). The interim period while this change takes place will be tumultuous.

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Nancy Kanzenbach's avatar

Thanks Fay, a lot to ponder. I’ve said this before, the intentional dumbing down of our public school system is a problem for the future of this country or any other country. Hopefully Europe will continue educating their children to a higher degree to benefit all mankind. I really don’t see that happening in our country as long as we continue letting capitalism run rampant with out guardrails.

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