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gitfan86today at 1:06 AM1 replyview on HN

The counterintuitive part of automation is that it removes parts of the economy rather than making the economy bigger. You end up with more goods but the value people assign to them goes down as they don't provide additional social advantage.

For example at one point nails were 0.5% of the economy and today owning a nail factory is a low margin business that has no social status.

Similarly the percentage of the economy and social status associated with frontend software dev will get automated and become a smaller percentage of the economy.

Since social status is a zero sum game people increase spending in other areas where social status can be helped.


Replies

visargatoday at 4:44 AM

> The counterintuitive part of automation is that it removes parts of the economy rather than making the economy bigger

So you believe in zero sum economy? I think new capabilities lead to demand expansion, they mobilize latent demand that was sleeping. There is no limit to desires, not even AI automation could outrun them.