Contemplating the Impact of AI with Claude AI
AI, Unemployment, and Political Economy - Discussion Initial Question: The Paradox of AI-Driven Growth and Unemployment Human: Imagine a scenario where AI takes away half of the entry level jobs. So, therefore, there is a 20% unemployment in economy, same US economy. And some people, particularly CEOs of tech companies, are claiming that the growth rate of the economy is going to be augmented. Right? Meaningful. So how is it possible to have 20% unemployment rate and 10% economic growth at the same time. Because at some point, consumption is going to catch up. Right. So what do you think will be the impact on economic growth rate and productivity? People are saying that it's going to take time for AI to show up show up in productivity numbers like it did with electricity, or steam engine or these kind of things. Claude: You're identifying a fundamental tension that many economists are grappling with. Let me work through the mechanics: The Core Paradox You're right th...