"Upstream" with Erik Torenberg cover image

E53: Nathan Labenz and Noah Smith on What AI Actually Means for the Economy

"Upstream" with Erik Torenberg

NOTE

Embrace Comparative Advantage in a Well-Functioning Economy

In a well-functioning economy, where AI excels at every task at a lower cost, humans can still have full employment by embracing the concept of comparative advantage. This means that even if AI outperforms humans in all tasks, including cost-effectiveness, individuals can still find their niche and contribute to the economy. For example, even if a business owner excels in every aspect of running a company, they will still employ others in a perfectly functioning economy.

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