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The dead economy theory

owenmcgrann.com

391–400 of 1001 posts

Re: The dead economy theory

#391
post #67

The whole post is premised on a fixed pie economy. "The financial model underneath requires the elimination of human cost centers at civilizational scale." No, it is not. It requires humans to collectively want more things if they are offered and available at a lower cost. Which then requires more humans to fill in the blanks to provide those things. We've been doing this since the industrial revolution.

the growing pie is a lie.

Re: The dead economy theory

#392

I know this isn't exactly related, so maybe a low value comment, but it itches in my mind. Years ago I talked with a recruiter at Facebook and they bragged about how many floors of developers they had working on Messenger in just one location (Seattle). What on earth do you do with that many devs on a project like Messenger? I mean, really? I feel like in a way, AI just adds to that weird situation of overcapacity. M…

LLMs will probably expose how much software work was coordination, bureaucracy, and marginal product churn. That could still be a big labor-market shock without requiring the technology to be magic

Re: The dead economy theory

#393

>The US horse population grew from nine million in 1840 to twenty-one million by 1900, seemingly immune to technological change. Within sixty years of the internal combustion engine, the population collapsed by eighty-eight percent. I think this is a very interesting and chilling point, especially if you draw the parallel literally. For quite some time, I was pondering the question:"Who is buying though?". I.e if you…

In the early 1900s the majority of Americans were self-employed. The equilibrium will likely shift back towards this, because AIs cannot be business owners, cannot have a bank account, cannot be held liable for their mistakes. And AI are unlikely to be given economic rights any time in the near future, because doing so would facilitate an overwhelming amount of crime; an AI that can make hundreds of copies of its wei…

The US already has a legal concept of personhood for companies. We are soon going to lose control to these “people” and businesses overrunning the economy, the internet and our culture.

Re: The dead economy theory

#394

Earlier quoted context omitted.

The industrial revolution was enabled by more efficient agriculture feeing labour to do other work.

What is the next large labour-absorbing sector supposed to be?

It won't be one large one, it will be thousands of little ones.

Every time this happens throughout history (and I mean going all the way back way past industrial revolution, to dawn of agriculture, to the earliest documented history, to the mitochondria, to the earliest stars exploding...) the result of a better way to get work done is more complexity and more diversity in work done (processes for increasing entropy).

The author said not to confuse laws of nature with observations of history, and I take issue with the implication. My perspective is grounded deep in physics, chemistry, biology and anthropology and after spending 10 years fretting over what AI would do to our civilization this decade I am not worried about labor displacement.

What I am worried about is power struggles and brainwashing.

Re: The dead economy theory

#395

I have led AI integration in a university faculty. From this experience I can conclude that good work is only produced when humans are in the loop. It's not a technical barrier, but a categorical one. "Good" work is defined by humans and our judgment is irrational but rooted in our evolutionary survival needs. In other words, AI don't have human motivation by definition. Without human in the loop, the top most motiva…

Agree with this. Even in software, the point of using AI is to produce something that a human finds valuable. There are many ways to use AI to build things faster, but a human has to be in the loop to point things in the right direction.

here is to you:

A) if conssumer of your service is end-user, let them write code themselves. -> result, they do not need "other human in the loop". they do not need you to develop and sell software. Replit style.

B) if consumer is AI or business, let it write it or build it themselves on demand. Codex on steroids.

C) no need to create new service at all. it all converges into single god-like super-app WeChat/Google style that does everything. eistance of different apps is history. it is all one app now.

you can very much end-up in scenario where human-in-the-loop of softwre industry is gone.

Re: The dead economy theory

#396

I know this isn't exactly related, so maybe a low value comment, but it itches in my mind. Years ago I talked with a recruiter at Facebook and they bragged about how many floors of developers they had working on Messenger in just one location (Seattle). What on earth do you do with that many devs on a project like Messenger? I mean, really? I feel like in a way, AI just adds to that weird situation of overcapacity. M…

I thought about that a lot too, and in the end I think it just comes down to stupid economics: What do you want them to do with all this money? 1) Most top US tech companies are flooded of money. Everyone dumps money in the SP500. 2) This money has to go somewhere. You can't just redistribute it as dividends, otherwise it's an admission that you won't grow and giving you more money would be a 0 sum game. 3) So you ha…

I think this is basically right, but I'd phrase it as "capital allocation theater" rather than just stupidity

Re: The dead economy theory

#397

> Turn three: the company that fired its workers to save money discovers that its customers were, in aggregate, other companies’ workers. Revenue growth stalls. The AI subscription that was supposed to be an investment in efficiency turns out to be a contribution to the destruction of its own market. If we take it to the extreme, the final solution to this problem is secessionism: a fully non-human AI economy where t…

The PKD short story “Autofac” seems highly relevant. Amazon had the HUGE BRASS BALLS to include this as an episode in “Electric Dreams”: https://www.imdb.com/title/tt6902176/

Absolutely loved that episode. I also thought it was incredible that Amazon was the company to release this.

Re: The dead economy theory

#398
If AI or any of the means of production are too concentrated, societies around the globe have found a solution: tax or nationalise.

Even taxing might be enough to tilt the scale in favour of labor. If whole countries have their socio-economic fabric damaged because the means of production are locked elsewhere this constitutes a sovereignty issue and it will be dealt with.

The Industrial Revolution had the same pains, and it took a few centuries to get societies where we are today.

Power generation is also instrumental to almost all labor produced today, and thus utilities were born.

I think the pope is right and the AI bros are wrong. I am currently rooting for the open weights to give the power back to the people. For teachers and artists to work for their neighbourhoods and communities.

Re: The dead economy theory

#399

Earlier quoted context omitted.

I thought about that a lot too, and in the end I think it just comes down to stupid economics: What do you want them to do with all this money? 1) Most top US tech companies are flooded of money. Everyone dumps money in the SP500. 2) This money has to go somewhere. You can't just redistribute it as dividends, otherwise it's an admission that you won't grow and giving you more money would be a 0 sum game. 3) So you ha…

> You can't just redistribute it as dividends, otherwise it's an admission that you won't grow and giving you more money would be a 0 sum game. I don't understand the logic behind this.

The observation is right but the causality is off. The money comes from extraordinarily profitable lines of business rather than investors. Hiring is driven less by business concerns and more by various layers of management advancing their careers by managing more and larger teams.

Re: The dead economy theory

#400
post #294

I know this isn't exactly related, so maybe a low value comment, but it itches in my mind. Years ago I talked with a recruiter at Facebook and they bragged about how many floors of developers they had working on Messenger in just one location (Seattle). What on earth do you do with that many devs on a project like Messenger? I mean, really? I feel like in a way, AI just adds to that weird situation of overcapacity. M…

>What on earth do you do with that many devs on a project like Messenger? I mean, really? What makes you think it's a simple system to develop at scale?

For a frontend developer? What is there to scale? The app is already done.
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