When the Robots Take Your Job: Some Intuitions From Recent Models of Automation (MATT CLANCY, JUN 04, 2024, What’s New Under the Sun)
Economists typically think about three major inputs to making all the stuff in the economy: ideas, labor (us) and capital (machines, buildings, tools – all the non-labor stuff that doesn’t get used up in production).
As the cost of labor and of a main component of capital (energy costs) trend towards zero we can not grasp how much cheaper wealth creation is going to get.