“The Lump Of Labor Fallacy flows naturally from naive intuition, but naive intuition here is wrong. When technology is applied to production, we get productivity growth – an increase in output generated by a reduction in inputs. The result is lower prices for goods and services. As prices for goods and services fall, we pay less for them, meaning that we now have extra spending power with which to buy other things. This increases demand in the economy, which drives the creation of new production – including new products and new industries – which then creates new jobs for the people who were replaced by machines in prior jobs. The result is a larger economy with higher material prosperity, more industries, more products, and more jobs.”
Why AI Will Save the World | Andreessen Horowitz
https://a16z.com/2023/06/06/ai-will-save-the-world/
via Instapaper
Why AI Will Save the World | Andreessen Horowitz
https://a16z.com/2023/06/06/ai-will-save-the-world/
via Instapaper