Today's poem:

Love’s Growth
- by John Donne

#poetry #love #JohnDonne #increase #growth #superabundance #devotion #taxes

https://www.tumblr.com/ukdamo/741025887186747392/loves-growth?source=share

Macroeconomic repercussions of superabundance and post-scarcity:

Our economic system is built on the assumption of scarcity. If something isn't scarce, like let's say digital music, it is artificially made scarce so that it can be exploited.

What happens when almost everything becomes abundant suddenly? You wouldn't download a car?

First of all, in single things like digital content which can be controlled by law to make it scarce, or in computer components like GPUs which are deflationary, basically less scarce every year per megabyte or unit of compute, the system can adapt.

If everything becomes practically free, it means the value of money skyrockets. That's severe deflation which is traditionally combated by central banks by lowering the interest rates so that more money supply is created. The interest rates have been from zero to negative for a long time, although now they are at about 4% to combat inflation.

I wouldn't expect we can combat this sort of an abundance by lowering interest rates and helicopter money, which basically try to mitigate abundance to make it scarce again by increased consumption.

Instead of paying completely nominal sums for let's say e.g. surgeries, AGIs managing the whole would rather find value from other things than money, like knowledge and trust. The underlying assumptions of currency-based economics break down in #superabundance.

Traditional #economics would suggest it makes sense to hoard money because of impending deflationary spiral, but in practice this will be so powerful that economies will switch away from money completely as it makes no sense anymore. People left with money will find that no one will want it as they can do business without.

There are legacy systems which will make this transition difficult, like taxes and debt, but governments and creditors will be similarly unwilling to take worthless/infinitely valuable money because they cannot use it. The utility value of money becomes effectively zero and the utility value of having a relationship with #AGIs becomes immeasurable.

When the money becomes priceless, profits become meaningless and so does ownership of non-voting stocks and debt.

This could be simulated and validated, but basically the sequence of events would be roughly:
1. Material abundance, nothing costs a cent anymore.
2. Helicopter money like no tomorrow.
3. Everyone is a bazillionaire.
4. Debts with non-negative interest rates are paid. Can't add taxes or rents. No one needs more money.
5. Everyone forgets about money.

Belatedly, an #Introduction:

Chair of London Futurists. Author of eight books including, most recently, "The Singularity Principles".

I spent 25 years at Psion, Symbian, and Accenture Mobility, envisioning, designing, and trailblazing the use of PDAs and then smartphones.

I'm @dw2 on Twitter.

Special interests: #Foresight #Singularity #Risks #Disruption #Transhumanism #Innovation #Technoprogressive #Superlongevity #Superintelligence #Superdemocracy #Superabundance #FutureSurge #VitalSyllabus