> You are assuming over the coming years that most parties so displaced simply shift to other parts of the economy as lucrative and are able to take advantage of those benefits.
That's how it's always been historically, but you are right that I can't predict it'll be the same in the future, especially when it comes to AGI.
> You are also assuming collusion explicit or implicit and the wealth of remaining buyers doesn't just keep prices high.
Collusion to fix prices can't happen in highly competitive markets with declining production costs, because of game theory reasons. You always get this graph[1] unless you have regulatory capture such as with insulin supply in the US. Or unless you have a labor-heavy cost base such as with the education industry.
The risk with AI is that it won't be highly competitive. As a general rule, only in a monopoly-like situations can you have abnormal profits. That's where the global wealth tax comes into play, among other policies targeted at monopolistic practices.
That's how it's always been historically, but you are right that I can't predict it'll be the same in the future, especially when it comes to AGI.
> You are also assuming collusion explicit or implicit and the wealth of remaining buyers doesn't just keep prices high.
Collusion to fix prices can't happen in highly competitive markets with declining production costs, because of game theory reasons. You always get this graph[1] unless you have regulatory capture such as with insulin supply in the US. Or unless you have a labor-heavy cost base such as with the education industry.
[1] https://pbs.twimg.com/media/E314pxwXMAI2ZIn?format=png&name=...
The risk with AI is that it won't be highly competitive. As a general rule, only in a monopoly-like situations can you have abnormal profits. That's where the global wealth tax comes into play, among other policies targeted at monopolistic practices.