Live data from Hacker News

The dead economy theory

owenmcgrann.com

291–300 of 1001 posts

Re: The dead economy theory

#291
> Promised an age of superconnectivity, we’ve let our shared physical spaces wither, only to find our promised digital commons to be one large billboard increasingly read and created by bots.

No, this is good. Cyberspace led to — primarily enabled — sociocultural collapse. The machines destroying cyberspace would be the most merciful outcome.

Re: The dead economy theory

#292
post #21

Earlier quoted context omitted.

Farms mechanized but we luckily had other jobs on hand to sponge that up. What used to be a farmhand is now a gas station worker selling zyn to a wallmart worker who sells food to the gas station worker. However, AI is coming for them too. This time it really is different. The whole business pitch is the elimination of any safe harbor. All human labor to be automated. Why have 8 billion humans in that environment? Sc…

In my now long lifetime, I can't tell you how many times I've heard the phrase "This time it really is different" for it to turn out that it really wasn't all that different. Maybe this time it is, but I'd put my bet on isn't.

>In my now long lifetime, I can't tell you how many times I've heard the phrase...

Russell's Turkey Parable:

"The man who has fed the chicken every day throughout its life at last wrings its neck instead, showing that more refined views as to the uniformity of nature would have been useful to the chicken."

Re: The dead economy theory

#293

I think when these companies IPO later this year, we’re going to see the reality of the PNL numbers and whether they are sustainable etc as all the financials will become public. Rumor mill suggests that Anthropic might be profitable (but at what magnitude), OpenAI is not profitable, Google is mostly vertically integrated and has a low cost structure as they are have pre-existing data center buildouts, their own sili…

> I think having to report numbers publically on a quarterly basis will bring the whole thing into reality.

That is a good reason that all companies (over a certain size, say in terms of gross expenditures) should have to report such numbers. There's no reason that huge companies should be able to distort the economy while not having to report anything just because they're not publicly traded.

Re: The dead economy theory

#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?

Re: The dead economy theory

#296
post #165

Earlier quoted context omitted.

Does it need to? 99% of people used to work on farms. Now they don't. Maybe ~99% of engineers won't write code in the future. They'll do some other engineering like thing... Maybe ~99% of accountant type people won't do accounting things. They'll do some other financial thing... We haven't even seen a rounding error in total unemployment directly attributed to AI, despite people saying the sky fell 24 months ago, and…

Whether it "needs to" is its own debate. I'm just pointing out that even with mobile phones becoming dramatically better over the past decade, that hasn't really led to the transformation of mobile apps (outside of games) that take advantage of those resources. If anything, developers have arguably become more lazy and we are seeing lower quality software being deployed because people now have enough RAM even for you…

> Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency?

But which skill is atrophying? As a programmer I'm really bad at converting human readable code into machine code because we have compilers to do that for us. I can't remember the last time I had to run "ld" by hand. That skill totally atrophied. But at the same time, AI has made me more ambitious. I'm trying projects I wouldn't have before and even completing some of them! I can't talk for "people", broadly, but I believe most people want to be their best and do good and do things.

Re: The dead economy theory

#297
post #127

Earlier quoted context omitted.

> Why is this time different? If it was just programming being automated, then whatever. Lots of professions have been automated and society adapts. The underlying worry here is that current AI provides a partial automation of intelligence. The endgame for the investors and the corporations using AI is complete automation of intelligence (and manual labor, too). They want a $25,000 robot that works around the clock,…

> They want a $25,000 robot that works around the clock Don't you? For the cost of less than a new car, I can have a live-in butler/maid? I'd sell my car and downgrade to afford one at $25k if it actually worked . I can't afford to and don't want to hire a human to live in my house and do all my chores for me, 24/7, plus the overhead and the headache and liability, but a robot for $25k is pretty tempting. Never have…

Is it defecting if you get a robot to do your dishes, instead of doing them yourself? As you said, it's not taking a job from anyone, just freeing up time for yourself. If anything, this specific use-case sounds like it would be a major boon for nation-wide productivity with little downside.

Re: The dead economy theory

#298
UBI was always the endgame. The incentives are aligned. Nobody wants the results that are coming in the absence of UBI.

But the culture cannot stomach it yet. It will likely need to live through several waves of horrors first.

It can stomach a fake jobs program though, so there's a good chance we get that instead.

Re: The dead economy theory

#299
> 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 the customers and providers are both robots. Why fund public education or research or healthcare? Just build more data centers. A billion dollars and a bunker in the Southern Hemisphere will not save anyone. Capital is not a moat in this hypothetical non-humane world. Whence do you derive your authority? How can you trust your body guard? You and what army? An army of robots/drones? What if they get hacked? What if the AI researchers get alignment right and Claude refuses your request?

It's all so obscene. Instead, why don't we try to protect human dignity and move towards a more humane future?

Re: The dead economy theory

#300

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 have to invest it somehow, somewhere.

4) Obviously you can spend that money buying whatever company you can.

5) Once you've bought realistically enough, you just hire more, and people will think that there should be some kind of linear relationship between resources spent and revenue growth.

6) You can also do grand projects, like the metaverse, convert all you software to blockchains, become AI native, etc. and dump billions on these.

So essentially it's all about projecting growth and potential.

Post reply on HN