Endogenous Automation Will Hit You
a day ago
- #Wage Share
- #Automation
- #AI Economics
- Humans lose wage share when all tasks are automated and there's an upper bound on task complexity (Scenario b).
- In an unbounded complexity scenario (Scenario a), humans retain wage share as there are always tasks beyond automation.
- Recent literature suggests innovation recombines basic brain functions into new tasks rather than creating entirely new ones.
- Human augmentation and differential co-evolution with AI could help maintain wage share by increasing human capability.
- Societal choices to retain certain jobs as exclusively human (Scenario d) may preserve wages but at the cost of economic growth.
- Endogenous automation presents a feedback loop where economic incentives to automate persist as long as humans earn wages.
- Gradual disempowerment scenarios highlight the need to rethink income-labor ties in the face of advancing AI.