I have questions about the macroeconomic implications of AI replacing jobs. Does this mean that those workers will shift to other non-AI jobs? Or does this mean that unemployment goes up and there just aren’t any jobs for people any more?
The way I am thinking about this, if corporations are able to hoard more wealth and increase profits substantially by getting rid of the need to pay people, how does the economy function if the money that would be paid to those workers is no longer circulating back into the economy?
If people then will get money from a UBI instead of labor income, who pays the government taxes? Corporations? Consumption taxes on people?
If corporations manage to get labor costs to near zero, profits go to near infinity, which is the goal of profit maximizers. But then there is no money in the hands of individuals to be able to pay to consume the goods or services these corporations provide? Is this desire to replace human labor with AI not just a living example of the myth of Icarus?
Any economists out there interested in breaking these issues down into more of a layman language for me? Thanks!
That is just how rotating things work. This is why vehicles need a differential, so that when you turn a corner the inside wheel can rotate at a different speed as the outside wheel.