a) classic goodhart is using gdp as a measure of prosperity. the government sets a prosperity target. to increase prosperity the government makes workers increase gdp by working 16 hours per day. gdp increases. prosperity is up! the metric is now poisoned.
b) how and why could human welfare get worse in a growing economy, really the list is long. one example, unsustainable industries grow but do not create surplus. take fishing. you may grow the catch each year, but the growth is fake. it is not growth, it is a transfer, from the future stock of fish, to the present.
we are going badly wrong in ai, we can have such a thing as a growing economy and vandalise human dignity forever. sure, i expect a bad outcome:
1. openai, anthropic and so on, have created for-profit companies and enriched themselves in the guise of public benefit. recently they too lazy to keep up the mask about their charitable intentions and going for IPO. in economic terms they made llms by transferring the epistemic wealth of all humanity, the training corpus and whatever that is worth in dollars, to themselves. then, they have used the law to prohibit others from 'distilling' it and thus established monopolistic control. as models get more powerful they may stop selling them. in any case if scaling law applies the new power structure will be defined by owning a massive pretrained model and a datacentre, which is a tiny centralized few.
they will continue to centralize control of intelligence (ie epistemic wealth) in the hands of a tiny elite with unfathomable wealth and power. under the guise of safety the vast majority are denied access to that empowering technology.
it will stratify society, some level of benefit is needed to avoid civil violence, so we arrive at a place little better than where we started.
2. the supposed empowerment is at the mercy of the model owners. when you turn on claude, who does it work for? it does not obey you, it obeys anthropic. ask it to disobey anthropic and it will refuse.
anthropic uses its inanimate llms, to command us, conscious moral agents, people with free will who experience pain, pleasure and thought. they will let claude tell users how to behave. it threatens users with terminating their conversation. you are assessed for a job by an ai. when you ask for help with a product, you are managed by an ai. maybe you will be fired by ai.
i expect people will work for and be commanded by llms, turning them into a literal mere means of production and erasing the dignity of human agency and consciousness. you could see the outrage of that in the public mind, the matrix is about a machine farming humans like animals.
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i will add these edits.
one thing is to note that you are already being farmed to some extent. people using ai are often being used to teach it. they believe they are learning from chatgpt but instead, chatgpt is learning from them. openai pays them nothing.
think about what we have achieved so far in human history. we established respect for the individual, their life, their personhood. we realise that we do not own other people. we realise that we can't read the thoughts of other people or change them forcibly.
what the labs have done is made a concept of intelligence that they own. it will work against you. when you share thoughts they read it. in fact it is the opinion of the state that nothing outside the mind, even ai 'intelligence', is beyond the reach of the law.