Comment by joshmarlow
2 days ago
> Right now those with assets are compelled to transfer them to those without because they have a need for the labor.
Yes - and those without are compelled to trade their labor for assets.
My point is that the assets themselves mean less when the average person can use AI to design anything - that makes the costs of production go down.
In a world where production is cheap, the money required to produce has relative less value.
> My point is that the assets themselves mean less when the average person can use AI to design anything
I’m not sure which assets you think that devalues; it certainly increases the value of the assets needed to run AI, and also of the assets needed to realize the things that people can design with AI.
> In a world where production is cheap, the money required to produce has relative less value.
In a world where your labor isn't required for production, the assets that are required for production have a much greater value relative to your labor than they do in one in which your labor is required to produce something.
“Cheap” is only a thing relative to some other thing.
To clarify, I'm focusing on the costs of ramping up a startup.
Currently VC has a great deal of power because up-front investment is required to hire staff and other expenses until the startup can become cash-flow positive. When a lone individual can start a venture using AI then the payroll costs go down. The investment requirements go down.
Yes, automation means that people with assets don't have to pay other people for their labor.
But it also means that people starting new ventures have less need of significant up-front capital.
I agree that lower up front expenses means less need for investment. I'll also note that it opens up the playing field to more people which increases competition. So it might or might not make your life easier.
However the technology that is expected to reduce labor requirements (and thus expenses) has an uncertain endpoint. It seems plausible that at some point a threshold could be crossed beyond which the human labor that you are able to add on top becomes essentially irrelevant. It is this second occurrence, or rather how society might react to it, that should be cause for at least some concern.