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What do you econ stackers make of this?

To quote the article I read, Elon Musk foresees a world driven by AI where productivity skyrockets beyond current imagination. In this future, traditional jobs may become less central, but society as a whole would benefit. 'Better medical care than anyone has today, available for everyone within five years,' he stated confidently.
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He predicts a world free from scarcity of goods or services. People could learn anything they want about any subject, for free. In such a scenario, the need to save for retirement might diminish significantly, as abundance would be the norm rather than the exception.'

So, usually, whenever AI is mentioned, it's in a doom context, taking all the jobs, humans without purpose etc.

I can see how AI advances could help with medical diagnosis and things like that, i dont see how it can make goods and services super abundant, I mean in the West at least, i think we have abundance already, it's just not distributed evenly.

I shall continue to stack sats and watch it play out

The two mechanisms I hear about the most

  1. AI will be more productive at many tasks by orders of magnitude
  2. AI will reduce transactions costs dramatically

The first point directly increases abundance but also indirectly. The freed resources, including labor, are now available to make other stuff.

The second point makes everything more productive, which does the same thing as the first point.

So, other things equal, AI makes life more affordable. That means you don’t need as much of a financial buffer.

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22 sats \ 1 reply \ @SpaceHodler 6h

Retirement savings will be irrelevant to those who own the AI.
Those who don't will die once they've run out of organs to sell.
The survivorship bias will indeed make abundance the norm.

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True, Musk for sure wont have to worry about it !

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22 sats \ 0 replies \ @clr 7h

In that future, you can have anything you want as long as you submit. That's the price to pay: absolute submission. You will own nothing (not even yourself) and you will be "happy".

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who's gonna build the roads make our crops?! (sorry, slaughter the beef cattle!)

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