Maybe I’m over thinking it or have s poor understanding of economics—but I’m curious where companies think money will come from to buy their products when no one has a job because they’ve been replaced by AI?
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Yes, that's the endgame of AI. Create a permanent underclass of quasi slaves doing anything just to stay alive and the upper class living in luxury bunkers celebrating while the world burns.
One billionaire once asked (this was before the AI boom): how can I make sure my servants don't rebel in the luxury bunkers? AI might be their answer.
Yeah, some "doomsday prepper" consultant was asked, "how do I ensure my security doesn't turn on my in a doomsday scenario," the answer was "well, don't have the doomsday scenario."
concrete truck doesn't care how many explosive collars are inside bunker
well actually it would be universe 25 not elon musk infinite abundance it is instead infinite slavery. the lower iq eat it up as good for them and pump the stonk.
And unfortunately for them, it doesn't even work that way. The capitalists who better use labor to build on top of AI will beat those trying to make all labor obsolete. Meanwhile, they do little to automate jobs that they literally rely on. No food? No energy? No modern supply-chains? These fuckers don't even realize how fragile it all is, as they've grown up in the same era of stability that we have. Just like the middle class was blindsided by the return to feudalism, they'll be blindsided by world war, the collapse of free trade, and the fall of America as the center of the global economy.
It won't be all that bad for them, but they'll drop the luxury bunker fantasies as not enough people die and local powers begin to vie for regional control. They'll lose to more grounded rivals if they try to pull some naive bullshit.
I can solve wages too, we destroy the capitalist system.
Communism gets rid of wages in fact it gets rid of money all together.
As does Anarchism.
isn’t anarchism the same as communism?
I specifically mean the end goal. A classless, moneyless, stateless society.
I always thought that communists and anarchists only disagreed in how to get to that end goal
that's half of it, yes they'd like to funnel all wages to five silicon valley dipshits, but the very same dipshits believe that computer god that they will build, just dump another 20B dollars bro pls this time it'll work out, will grant them immortality (many flavours here, brain uploading or cryonics or others) or limitless space colonization or some other piece of scifi setting that they read 30 years ago and missed the point of
It's not really the wages they are after. Paying a wage on one end and getting paid market rates on the other end is how they generate profit, no matter how much automation advances.
It's those pesky labor rights they want to get rid of. AI helps in two ways: take away power from workers by threatening replacement, and automate data gathering and surveillance to physically control those who try to oppose capitalism.
It's not really the wages they are after. Paying a wage on one end and getting paid market rates on the other end is how they generate profit, no matter how much automation advances.
It is wages they're after. How much profit there is can be greatly increased by not having to pay any workers.
That's not how (non-speculative) profit works under capitalism.
All profits that a capitalist accrues are eventually extracted from a laborer who puts in more work than what they are paid, where
- the wage is determined by the costs of reproducing labor power (amortized cost of their education, food to keep going, shelter for rest, entertainment to not go insane, costs of bearing and raising children to produce more workers)
- the amount of work is determined mostly by the length of their working day
The profit is the difference between the labor power expanded in a working day and the wage (the labor power necessary to maintain a "supply of labor").
If you remove the wage, and therefore the laborer, you are left with no profit. Capitalists understand that intuitively. Some will speculate on the amount of labor power to manipulate the perceived value of their company (hence the hiring/layoffs cycle), but a sustainable business requires a steady supply of labor for which (at least under capitalism) they must pay a wage.
If, by some miracles, capitalists manage to produce & gain control of an AGI (I strongly doubt this will happen with LLMs), and manage to force us to bootstrap a fully automated supply chain without overthrowing capitalism, we will indeed enter into another economic system entirely, and it won't be good for most of humanity.
If you remove the wage, and therefore the laborer, you are left with no profit
Not exactly. Because you're not removing the labor, you're just bringing it down to virtually nothing.
There's still the labor of pressing the button to start the AGI.
But the larger problem capitalism has is one of the wage form - my wages are your income as a capitalist, since I buy things with them. You remove wages, and demand (desire plus ability to pay) collapses in the market. Super depression.
And they are messing it up big time, and fixing that mess later down the road costs way more than just paying wages to actual brains.
what trillion dollar problem is automation trying to solve?
Automation only really increases productivity. The principles of scarcity and capitalism will ensure that people always have work. Even if robots could fully take over all current jobs, new ones will emerge as capital seeks more busywork. The only way to actually make a fully automated world is through collective ownership of such automation production and a total abolition of private speculation.
Of course, we could realistically strive for a partially automated world where we need to put in less and less labor as more essential work gets automated, but that won't happen. Global capitalism adds a competitive drive to maximize development so states and companies don't get bullied by rival empires and businesses. It's a prisoners dilemma and none of the states or capitalists have any motivation to deescalate. So instead all those with power race to the bottom; buring humans as fuel, pillaging the environment, and making sure we never reach a post scarcity world.
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