216 sats \ 1 reply \ @oliverweiss 2 Feb \ on: Will AI Cause Massive Deflation? econ
My favorite Austrian economist often reminds agriculture as an example where the developed technology should result into deflation, but it didn’t. (in principle we can produce so many goods with just so little “effort” these days unlike 100 years ago)
Measuring costs in human effort is kinda the point though. When you measure in dollars you get a distorted view due to inflation of the money supply.
It's pretty clear we can produce significantly more cheap food today than we could 100 years ago. However, we're still constrained by nature. In other words, we still have to wait for the cow to grow before turning it into a steak.
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