People have been scared for a long time that new technology would take away jobs and cause people to be out of work. This worry has existed since the Luddite movement and the last two decades with the Internet and robots.
But, even though people are scared, the economy has been getting better with more jobs and higher wages. Now, with AI, people are afraid of it again.
In 2019, the world economy was the best it had ever been, with many jobs and higher wages.
Even though this is true, people still worry that AI will cause unemployment. Usually, people try to argue against this fear, but this time, there is another problem that will stop AI from taking over: it is illegal.
This chart shows how prices have changed in several parts of the economy.
There are two other economies:
One, where technology is allowed to make prices go down and improve things,
The other, where technology is not permitted to make prices go down.
In the first one, prices are going down, but in the second one, prices are going up.
The Emotional Loading
The chart shows how production and consumption work together.
People get mad when prices go up in the red parts, and producers get mad when technology changes things in the blue regions.
But, as the chart shows, you can’t have both.
As time goes on, prices of things that are regulated and not changed by technology will keep going up, and the costs of things that are not held and are changed by technology will keep going down.
This means that the controlled parts of the economy will get bigger, and the factors that are not regulated will get smaller.
AI and Unemployment
In the end, 99% of the economy will be in the regulated, non-technological parts, so AI won’t be able to cause unemployment to go up.
Furthermore, AI is already not allowed in most of the economy and soon won’t be allowed in almost all of it. So, no matter how good AI gets, it will only be able to do the jobs of humans in some of the economies.