Post Labor Economics: How will the economy work after AGI? Recent thoughts and conversations

TL;DR

Post-labor economics predicts a future where AI and automation replace human labor, leading to a hyper abundance of cognitive labor and drastic disruptions in the employment landscape. Key insights include productivity surge, scientific acceleration, price collapse, industry shifts, and the need for a new social contract.

Transcript

I gave a talk last night to a bunch of students at Clemson University and as often happens when you talk to a bunch of really sharp young people with good questions it spawned a lot of thoughts and and robust discussions and so what I wanted to do was share some of the insights from that conversation that I had and give you a little bit of updates ... Read More

Key Insights

• 🔬 Post-labor economics predicts that the rise of AI and automation will lead to a hyper abundance of cognitive labor and disruptions in the employment landscape.
• ❓ Productivity surge, scientific acceleration, and price collapse are expected outcomes of AI and automation in various industries.
• 👶 The need for a new social contract, reduced aggregate demand, and the emergence of a status economy pose challenges and opportunities for the future of post-labor economics.
• 😋 Industries related to primary needs (food, water, housing) and secondary needs (experiences, creativity, intellectual stimulation) are likely to persist, while others like healthcare, education, finance, and digital entertainment may face extinction or drastic changes.

Questions & Answers

Q: What is post-labor economics?

Post-labor economics is a new economic paradigm that predicts the replacement of human labor by AI and automation, leading to a renegotiation of our relationship with work, money, and businesses.

Q: How will AI and automation impact productivity?

AI and automation have already shown to significantly boost productivity in industries like software development. As AI capabilities continue to improve, productivity benefits are expected to increase further.

Q: Will new jobs be created with the rise of AI and automation?

While it is commonly believed that technology creates new jobs, the author suggests that this may not necessarily be the case. Lower costs resulting from automation may free up resources for new sectors, but if machines can address these new markets, human jobs may not be created.

Q: What are some key industries that will survive the rise of AI and automation?

Industries involved in raw materials and energy, semiconductors, robotics and automation, sustainable technologies, and experience-based industries (such as entertainment and travel) are predicted to survive and even thrive in the future.

Summary & Key Takeaways

• Post-labor economics envisions a future where AI and automation replace human labor, leading to an abundance of cognitive work and disruptions in the employment landscape.

• Advances in AI and automation have already demonstrated productivity surges and scientific acceleration in various fields.

• The rise of AI and automation will lead to the collapse of prices in various industries, creating both challenges and opportunities for businesses and consumers.