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monk@mechanical_monk• about 3 years ago

just a reminder re: AI taking jobs tech has 2 opposing effects on the labor market INCOME EFFECT: labor is made more productive by technology (wages ⬆) SUBSTITUTION EFFECT: labor is replaced by technology (wages ⬇) there is no way a priori to tell which effect will win out

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nobu hibiki@nobu_hibiki• about 3 years ago
Replying to @mechanical_monk

@mechanical_monk Monk did u hv an econ degree

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monk@mechanical_monk• about 3 years ago
Replying to @nobu_hibiki

@nobu_hibiki eh something like that "applied mathematics" it was about half econ, half math

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nobu hibiki@nobu_hibiki• about 3 years ago
Replying to @mechanical_monk

@mechanical_monk Damn I'm doing econ and I only remember how income effect and substitution effect work like when it's directly prompted

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Eason C 🎭🎐@easoncxz• about 3 years ago
Replying to @mechanical_monk

@mechanical_monk Damned be I if wages go up when workers are more productive. 🎩

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monk@mechanical_monk• about 3 years ago
Replying to @mechanical_monk

oh yeah my bad, i mean "a labor market" not "the labor market" specific roles at a specific point in time for the economy as a whole, in the long run, tech just increases wages https://t.co/3GUPN1ghpt

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monk@mechanical_monk• about 3 years ago
Replying to @mechanical_monk

new twitter feature where your tweet is only visible to people who know what ceteris paribus is

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Forth ❤️‍🔥@forthrighter• about 3 years ago
Replying to @mechanical_monk

@mechanical_monk in substitution, it doesn't drive wages down so much as it substitutes lower skilled roles for fewer, higher-paid, higher-skilled. E.g. instead of 5 machine operators you get 1 SCADA system engineer

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Forth ❤️‍🔥@forthrighter• about 3 years ago
Replying to @forthrighter

@mechanical_monk this doesn't have to be a disaster if there's robust support & execution for education & upgrading skills. If the machine operators can learn SCADA skills, you can move towards > 5x production

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