More importantly, can the consumers afford the products? If there’s increased supply of labor from robots, the real incomes from jobs will fall, but at the same time the increased demand for energy and raw materials from the AI boom will also cause cascading inflation throughout the real sector of the economy! Coupled with the lucrativeness of investing the capital into AI, the interest rates might skyrocket, which also has all sorts of negative effects on the real sector (for example, who bails out millions of people who had to downshift jobs due to automation and thus can’t repay their debts but can’t refinance due to rates either?)
More importantly, can the consumers afford the products? If there’s increased supply of labor from robots, the real incomes from jobs will fall, but at the same time the increased demand for energy and raw materials from the AI boom will also cause cascading inflation throughout the real sector of the economy! Coupled with the lucrativeness of investing the capital into AI, the interest rates might skyrocket, which also has all sorts of negative effects on the real sector (for example, who bails out millions of people who had to downshift jobs due to automation and thus can’t repay their debts but can’t refinance due to rates either?)