
#29 – Phil Trammell on Economic Growth under Transformative AI
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AI of Capital Beginning to Substitute Labor
For growth to proceed as production currently has to unfold, you need two ingredients. Lack of labor is in the bottleneck. If capital can start substituting for labor, then you don't need labor augmenting technology anymore. You can just put capital in both slots. Just making capital fully able to substitute for labor would definitely have a transformative effect on the growth rate.
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