#29 – Phil Trammell on Economic Growth under Transformative AI
Hear This Idea
00:00
The Importance of Human Capital in Wages
If capital can fully substitute for labor, so there's no sense in which having more capital around now makes labor more productive. Then the wage rate should end up being the capital rental rate. In this intermediate case, increasing the substitutability of capital for labor to that middle zone can actually increase wages a lot. The big question now then is, what of these two scenarios we're heading to if AI does change this?
Transcript
Play full episode
