LordsFire
Internet Wizard
No.Are you working your way towards promoting Universal Basic Income? That's normally where I see people take this logic chain. Once you've established that the money will always recirculate, the next step is making sure it goes first to ensuring that everybody has their basic needs met.
UBI is what would, in fact, create the economic catastrophe that most people who are paranoid and hysterical about AI are trying to avoid.
AI is a tool that increases productivity (when used properly), meaning more value is added to the economy per man-hour of labor, and thus increases human prosperity.
UBI is paying people to do nothing, and thus turning everyone into dead-end absorbers of wealth. If you pay people to do nothing, you are taking them out of the pool of contribution to society's prosperity, and worse, welfare dependents as an overall class always end up becoming malcontents and vote farms for demagogues, meaning UBI would also degrade society morally, culturally, and politically.
Honestly, people using AI as a justification for UBI is the single biggest threat I see from AI right now.
You are failing to understand a key aspect of how economics work.The problem with AI as labor-saving tools is that they're so good/can get super good at certain things, that you don't need as many people to do those things anymore. And there's not enough people with cash who're willing to finance new companies to hire all those people who lost jobs, so you've got people who can do all sorts of things that can't get paid to do the things they're good at.
When a game development company lays off a third, or even say two thirds, of its employees because they can get the same amount of work done with that many less people but using AI, that saves them expense. The value that the company adds to the economy is not 'how many people it employs,' but 'the game(s) it produces.' If it costs them 60 million to make a game instead of 180 million, but it brings in the same amount of revenue, let's say 500 million, the other 120 million of would-be costs does not just 'disappear' from the economy.
Instead the company does some combination of the following: pays dividends to shareholders, who spend or invest the money, hires on some more people so that it can make more projects at once, or invests in assets like office buildings, servers, advertising, etc.
Whichever way the money is spent, it still ends up spent, and continues to circulate through the economy. The fact that it's cheaper to make something does not mean jobs 'disappear.'
How do we know this is true?
Through the recorded effects of every other technological advancement in tools. Improved farming and steam engines didn't result in massive permanent unemployment, it just changed how people worked, and made whole new swathes of goods available to people.
Yes, this can really suck for people who've spent years or decades developing a skill that's now of little to no economic utility, there are specific groups that these transitions are hard on, but money doesn't just 'disappear' from the economy because a better tool makes production cheaper. It is, in fact, the other way around; a better tool making it cheaper to produce something adds value to the economy.
Note, I am purely talking about the fears of 'permanent unemployment' and the like. Not the many other issues that can come with changes to economic structure and relative balances of social power. There absolutely can be very serious problems with such things, but not because a tool makes humans permanently unemployable.