Comment by movpasd

You're assuming that the free market will do what it's meant to do. But there is also a reality that there are plenty of structural market failures in the economy that arise from existing capital endowments, regulatory capture, and just the permanent movement of equilibrium in the social system. The point is that the state of the economy as a whole is path-dependent. The article, in my reading, is a warning that the inertia accumulated from this current AI hype cycle might push us into the watershed of an undesirable steady state, where there simply is no capital available for new entrants.