AI and Automation Raise Questions for Economic Theories, Jobs, Inequality and the Environment
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Classical and modern economic theories assume human labor is essential for production, but AI and automation are making human-less production possible.
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Dominant economic theories offer no guidance on how to deal with persistent technological unemployment. Their proposed solutions miss the mark.
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AI and automation may create enough new jobs, but the pace of change may be too rapid for the labor force to adjust.
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As productivity grows but consumption and investment lag, environmental degradation could accelerate.
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AI and big data are likely to concentrate economic and political power in few hands, threatening democracy and competitive markets.