Sure, the “general equilibrium” also includes the actions of the government and the voting intentions of the population. If change is slow enough (i.e. below 0.2 OOMs/year) then the economy will adapt.
Perhaps wealth redistribution would be beneficial — in that case, the electorate would vote for political parties promising wealth redistribution. Perhaps wealth redistribution would be unbeneficial — in that case, the electorate would vote for political parties promising no wealth redistribution.
This works because electorial democracy is a (non-perfect) error-correction mechanism. But it operates over timescales of 5–10 years. So we must keep economic shocks to below that rate.
If AI-induced change leads to enough concentration of economic and military power that most people become economically and militarily irrelevant, I don’t expect democracy to last long. One way or another, the distribution of political power will shift toward the actual distribution of economic and military power.
This is what I believe as well. The post-AI economy will look absolutely nothing like what we have now. It’s not something you can achieve via policy changes. There are way too many vested interested and institutions we dont know how to ever get rid of peacefully.
Sure, the “general equilibrium” also includes the actions of the government and the voting intentions of the population. If change is slow enough (i.e. below 0.2 OOMs/year) then the economy will adapt.
Perhaps wealth redistribution would be beneficial — in that case, the electorate would vote for political parties promising wealth redistribution. Perhaps wealth redistribution would be unbeneficial — in that case, the electorate would vote for political parties promising no wealth redistribution.
This works because electorial democracy is a (non-perfect) error-correction mechanism. But it operates over timescales of 5–10 years. So we must keep economic shocks to below that rate.
If AI-induced change leads to enough concentration of economic and military power that most people become economically and militarily irrelevant, I don’t expect democracy to last long. One way or another, the distribution of political power will shift toward the actual distribution of economic and military power.
This is what I believe as well. The post-AI economy will look absolutely nothing like what we have now. It’s not something you can achieve via policy changes. There are way too many vested interested and institutions we dont know how to ever get rid of peacefully.