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Rd21Bn OP t1_je47sh9 wrote

to reply to u/WillKimball 's comment on my post for some reason i cant see it and cant reply to it.

>You clearly never understood macroeconomics 101. When people are unemployed how are they going to contribute to the economy without spending? When people don’t spend enough demand goes down meaning companies will drop their supply down. With supply down the company in effect will layoff people who are reliant on that product. This is a snowball effect that was in the industrial revolution, and we will see the massive inflation from that time period and the stagnation of wages return. With stagnation of wages and the layoffs to come we will see riots break out not just in cities be over everywhere.

yes even tho ur right ur not factoring into 2 considerations:

  1. if people are laid off that means inflation goes down so fed can cut rates and jobs will go back up again, and also ai will create new jobs/companies, tons of them. which you can read it says in that article i linked.

  2. you are not accounting for the fact that ai will massively improve efficiency and productivity, therefore lower the cost to produce products and thus lower the cost to meet the lower demand. overall, there will be a huge abundance of supply and since their costs are also cut they dont have to lower their supply, they can actually lower prices. but assuming you are extremely bearish then our thesis are opposite so you can buy puts and we'll see what happens

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Rd21Bn OP t1_je4a4wp wrote

im actually incredibly regarded, i just make shit up as i go so dont take me seriously at all, dudimg

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mhmilo24 t1_je54rwe wrote

You’re talking about two major impacts 1. productivity increase through tech vs 2. productivity decrease due to work-force restructuring and framing it like it clear as day which one will be bigger. I doubt that it is clear. We do not know and we do not have a precedent case in a similar fashion. Previously revolutions required the production of physical goods that take much longer to supply and adapt to and thus, the job market has a longer period for adaptation. Digital revolutions happen rapidly. No need for extending the production capacity over half a decade and then another 2-5 years to supply everyone who relies on your manufactured stuff. It can happens as soon as a fee workers learn to make use of the new software.

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