In economics, the classic production function is economic output is equal to capital times labor or simplified as Y = KL. Capital can be money, machinery, or property but it is most importantly controlled by capitalists. Capitalists’ natural incentive is to substitute capital for labor because that maximizes profits that don’t otherwise need to be shared with labor as well as reduces the risk of human agency of labor if machinery replaces them. One scenario is that this process expands output so much that the negative effects on labor are offset by their increased consumer options and opportunities for employment in an expanded and more developed economy. Another scenario is that output doesn’t expand and labor retains those negative effects while being made more unequal to the capitalists.
Is AI Hype, Hope, or Hallucination?
Is AI Hype, Hope, or Hallucination?
Is AI Hype, Hope, or Hallucination?
In economics, the classic production function is economic output is equal to capital times labor or simplified as Y = KL. Capital can be money, machinery, or property but it is most importantly controlled by capitalists. Capitalists’ natural incentive is to substitute capital for labor because that maximizes profits that don’t otherwise need to be shared with labor as well as reduces the risk of human agency of labor if machinery replaces them. One scenario is that this process expands output so much that the negative effects on labor are offset by their increased consumer options and opportunities for employment in an expanded and more developed economy. Another scenario is that output doesn’t expand and labor retains those negative effects while being made more unequal to the capitalists.