Artificial Intelligence, the Collapse of Consumer Society, and Oligarchy
https://d.repec.org/n?u=RePEc:iza:izadps:dp17682&r=&r=ain"The pace of progress in artificial intelligence has resurrected worries about the end of work. Some people call for an egalitarian society based on universal basic income, while others think regulation should curb the use of
#AI.
… While, in partial equilibrium, they would benefit from AI as replacement of the knowledge workers they need to operate their business, in general equilibrium massive use of AI might be self defeating because it would lead to a collapse of the middle class of
#skilledWorkers and therefore of the market base for mass produced goods.
… If influence depends on the number of agents exerting influence ("one person, one vote"), AI will prevail and be supplemented with
#UBI, provided fiscal capacity is large enough to fund for such UBI. If fiscal capacity does not allow for enough
#redistribution, then the
#oligarchy may want to curb AI so as to maintain a high enough demand for skilled workers, so as to preserve the market base for mass produced goods.
… If influence is chiefly driven by monetary contributions ("one dollar, one vote"), AI is likely to prevail and no UBI will be implemented, because producers of necessities, who do not value the existence of a large middle class, will outbid producers of more sophisticated goods in the competition to obtain one’s most preferred outcome.… "
#economics