Great breakdown of the 'homogenous blob K' vs. actual capital goods. To your point on capital requiring upkeep: I think we’re seeing this play out in real-time with AI. Many treat LLMs like a magical 'automatic' profit machine, but without the 'human capital' (prompt engineering and strategy) to direct it, it’s just an expensive server farm sitting idle. It’s a higher-order good that only yields a return when combined with specific, purposeful labor. Great to see the McCloskey shoutout here.
Great breakdown of the 'homogenous blob K' vs. actual capital goods. To your point on capital requiring upkeep: I think we’re seeing this play out in real-time with AI. Many treat LLMs like a magical 'automatic' profit machine, but without the 'human capital' (prompt engineering and strategy) to direct it, it’s just an expensive server farm sitting idle. It’s a higher-order good that only yields a return when combined with specific, purposeful labor. Great to see the McCloskey shoutout here.