Earlier quoted context omitted.
> If all the things people are doing are done so much more cheaply they're almost free, that would be good for us ... Doesn't this tend to become "they're almost free to produce " with the actual pricing for end consumers not becoming cheaper? From the point of view of the sellers just expanding their margins instead.
I'm sure businesses will capture some of the value, but is there any reason to assume they'll capture all or even most of it? Over the last ~ 50 years, worker productivity is up ~250%[0], profits (within the S&P 500) are up ~100%[1] and real personal (not household) income is up 150%[2]. It should go without saying that a large part of the rise in profits is attributable to the rise of tech. It shouldn't surprise any…
Only in very simplistic theory. :(
In practical terms, businesses with high margins seem able to afford government protection (aka "buy some politicians").
So they lock out competition, and with their market captured, price gouging (or close to it) is the order of the day.
No real sure why anyone thinks the playbook would be any different just because "AI" is used on the production side. It's still the same people making the calls, just with extra tools available to them.