One interesting thing in the IMF report I mentioned recently forecasting a significant productivity slowdown: the positive effects of AI on productivity and the negative effects of inefficient trade policy were shown offsetting each other. Meanwhile, Eric Posner is concerned that humans will have psychological difficulties leading lives of leisure after the AI-driven productivity revolution, and after our political system correctly decides to redistribute the resulting wealth to everyone. I know, this could be a medium-term pain, long-term gain sort of thing. But how do we know the long term will come? And this kind of thinking clearly ignores the existential threats like climate change and biological weapons, unless you assume the AI productivity revolution will dispatch those threats without creating new ones.
trade “fragmentation” vs. AI?
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