The Uncommon Wisdom Podcast

#29 | Bryan Caplan | All Things AI

Aug 2, 2024
Economist Bryan Caplan, a professor at George Mason University and an acclaimed author, shares his insights on the transformative power of AI. He discusses its potential influence on immigration and national security while arguing that housing regulations have significantly inflated prices. Caplan highlights how AI is reshaping telework and education, but also notes its limitations in mass persuasion. He raises concerns about authoritarian regimes leveraging AI for surveillance, yet maintains an optimistic view on AI’s overall impact.
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INSIGHT

Regulation Inflates Housing Costs

  • Housing regulation can double housing prices by preventing new supply when demand rises.
  • This distortion vastly reduces welfare because housing is a large share of income.
ADVICE

Deregulate To Solve Multiple Problems

  • Deregulate housing to tackle many seemingly unrelated social problems tied to high housing costs.
  • Focus on unlocking supply rather than blaming short-term demand shocks.
INSIGHT

Technologies Transform Slowly

  • Major technologies often take decades to transform economies despite appearing revolutionary.
  • Expect AI's full economic impact to unfold slowly over many years.
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