On Tue, Sep 8, 2026, 8:31 PM Boris Kazachenko <[email protected]> wrote:

> The employment numbers don't matter as much because wages provide a
> decreasing proportion of GDP, vs. capital.
> And AI will hugely accellerate this trend.
>

Is that bad? You might think so because labor has a higher share or GDP in
more developed countries and is decreasing over time.
https://en.wikipedia.org/wiki/Labor_share

But that is because the rate of economic growth is accelerating and is
faster in poor countries due to trade. When a business spends less of its
revenue on wages, it invests more in capital and grows faster. That is how
recursive self improvement works.

So I think you are right that AI will accelerate the trend, but not hugely.
There won't be a singularity or intelligence explosion. Intelligence
requires knowledge and computing power. Knowledge acquisition from humans
is limited to 5 to 10 bits per second. Moore's law can no longer shrink
transistors any more.

-- Matt Mahoney, [email protected]


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