“Applying traditional economic thinking to AGI: a trilemma” by Steven Byrnes

The Impact of AGI on Labor and Prices

The integration of Artificial General Intelligence (AGI) is examined through two traditional economic principles that provide contrasting predictions about its impact on labor and pricing. Principle A suggests that as AGI can undertake tasks performed by skilled human labor, the marginal value of such labor will remain high, ensuring that humans can still find fulfilling and well-paying jobs. Conversely, Principle B posits that the increased production capacity for chips, robots, and electricity due to AGI will lower their prices, thereby devaluing human labor that must now compete with these cheaper substitutes. This tension between the principles indicates uncertainty about the wage landscape in a future dominated by AGI and necessitates a deeper exploration of how these dynamics will play out in the market.