New pod: THE SMARTEST CASE AGAINST THE AI JOBS APOCALYPSE
AI is the first technology that seems to automate the same cognitive sectors that absorbed work during previous waves of automation. For that reason, many people worry that it will destroy tens of millions of jobs imminently.
But after I review the evidence showing that AI is not clearly destroying work today—and might even be stimulating demand for certain tech jobs— I brought on the great @alexolegimas to talk about the best reasons to doubt the doomsday narrative.
We talk about all sorts of economic principles—lump of labor fallacy, income elasticity, Jevon's Paradox—but maybe his most interesting point is about the nature of desire and status.
Desire is insatiable, and technology will never solve for status. Even in a world where AI can automate many tasks, status might go up rather than down or flat. And status motivates a lot of economic activity. So even in a world where AGI is very good at 99% of existing tasks is still a world where people will want to send their money to things that are perceived as "scarce" and "status-enhancing." You can create a lot of jobs on this basis alone.
You could argue that this is how economic transformations have always worked. Our economy is a rough register of human desires. And in a world where artificial intelligence automates some tasks, it might not destroy work so much as it moves dollars and labor toward new desires in new sectors of the economy. The pet care economy wasn't really a thing in 1800. Now it's a >$100 billion business, made possible by the fact that a richer country moved dollars and workers from corn farms to bespoke poodle manicure spas.
It is easy to imagine that AI could automate many tasks and even some jobs. What's harder to imagine is that we'll be permanently stuck in an disequilibrium where people with disposable income aren't trying to satisfy their desires and burnish their status. And in a world where AI is abundant, the question we should be asking about the future of work is: What will be scarce? What will be kind of jobs will be produced as desire and status shift, once again?
https://open.spotify.com/episode/74OPgOA4Nbj5ete0Tgujtu
