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I think this is basically right, but I'd phrase it as "capital allocation theater" rather than just stupidity

Which feels like a longer way of saying 'stupidity'.

If we call it "stupidity" then a lot of money simply vaporizes overnight.

Which ironically illustrates just how stupid the system really is.

LLMs will probably expose how much software work was coordination, bureaucracy, and marginal product churn. That could still be a big labor-market shock without requiring the technology to be magic

The worry with AI is not "productivity is bad." It's whether the displaced labor has anywhere comparable to go

Comparable being the key word there. AI marketing is threatening to eventually eliminate most white collar work. The exact high paying jobs (at least in the US) that enable upward class mobility and fuel the consumption based economy.

Take those away and tell everyone "sorry, go do physical labor now for half or worse of the salary" and that's a big problem.

Automation is a boon when it automates physical labor, not when it automates away knowledge work.


The emphasis there should be on "marketing". The actual state of things is that white-collar work is alive and well, and if anything is being helped by AI.

Helped or overworked?

Interesting there is a possible implication here. If salaries drop from more people doing physical labor instead of white collar work then the automation of physical work may be delayed even longer. It may be cheaper in the short term to pay humans than machines due to an oversupply in physical labor.

Automation is a boon when it automates away tedium, but also a curse for the people that subsist by enduring that tedium.

> Automation is a boon when it automates physical labor, not when it automates away knowledge work.

Says the knowledge workers, who have collectively spent the last 50 years talking down to the physical laborers with a smug "should have gone to college!" attitude.

You'll be fine. Automation of any kind is a boon for everyone. We massively over-allocated human talents to office jobs over the past few decades and stopped building anything in the physical world (like houses, infrastructure, etc), this is only the pendulum swinging back to reality. Graeber wrote about this astutely in his original 2013 Bullshit Jobs essay, long before AI was a thing.

How many people do we actually need sitting in meetings about meetings about powerpoint presentations for future meetings....or implementing react components into a dashboard UI in a slightly different way for the 3,000,000th time? Even without AI, this was bound to happen.

In the early 1900s there were literally hundreds of different automobile manufacturers globally. We didn't need that many, just as we don't need 1,000,000 people working on 100 slightly different versions of the same CRUD project management software. Humans will human. We'll find new stuff to do, as we have done since the dawn of humanity.


"Graeber wrote about this astutely in his original 2013 Bullshit Jobs essay"

I wouldn't take his word too seriously. According to him, corporate lawyers, administrative assistants and compliance officers shouldn't exist.


Uhhh...what jobs do you think AI is going to be tasked with automating?

The most valuable non-foundation-model AI companies are...legal apps. This means he was right, not wrong.


Funny you make this statement without giving examples of timeframes, what this looked like in real terms for real peoples lives living back then, nothing. Just 'between 1880 and 1950 we found new stuff to do'. It's all selling magic and hopium based on nothing.

Real example: 75% of the global workforce were farmers in 1880, most on a subsistence basis. The people who left the farm for the factories during that time period weren't forced to. They chose to, because working in a factory was better than staying on the farm. Just like a generation of rural Chinese people made the same choice more recently.

In fact, there's nothing stopping you from buying a farm and living like its 1880 today.

You can quite literally go out and start living a subsistence farmer lifestyle tomorrow. The average person in 1880 did not have the tools needed to cultivate a large parcel of land, so you'd approximate their lifestyle quite easily with a tiny parcel of arable rural land which is extremely cheap to acquire in most countries.

It's not magic and hopium, its simply automation and increased productivity via leverage. AI is the assembly line of the digital revolution.


You need 0.5 to 1.5 acres per person for non-mechanized industrial argriculture. Nowhere with land that is truly arable enough for that is going to _sell_ you 1 acre at a time. In the U.S., you buy at least 40 acres at a time. In the U.S. Midwest, that's going to set you back (on average) $379,000. That's before you buy the equipment you need to be able to farm the land in the first place. Unless you industrialize and grow crops to sell to other people, you will not be able to afford the property taxes on the land to be able to keep it, either.

So, no, you cannot just go out and buy an acre and garden.


What? Yes, you absolutely can buy half an acre. You think in 1880 people went on Zillow to buy land?

You're just going to have to do this the 1880 way.

Knock on the door of a land owner and offer to buy/rent half an acre so you can farm. You'll find takers. My extended family literally has this arrangement with many people who farm different crops during different seasons.

Too hard to to do it that way? Welcome to 1880! Most people weren't land owners on the land they farmed back then and didn't have 'Perfectly arable' plots, and this was pre-fertilizer.

Oh and you'll have to use horse and buggy to get around to find land owners (no evil automobiles from those evil factories full of automation!) who will allow you to farm their land, just like 1880. So good luck.

I don't know how many times I need to explain this to tech doomers: nobody forced people out of subsistence farming. They chose to leave it. It was not a utopia.


Why is you're 'real example' 100% hypothetical? Give me real examples. Or at least real information from places like Manchester at the time. Not this hypothetical stuff the implies much ignoring things got worse for generations.

If you read up on the industrial revolution, those people that moved became less healthy, less happy, forced into dorm style housing. Give me real examples of what 'working out' looked like in the past. Because from my research, 'things worked out' meant worse outcomes for quite a long time (like generational timeframe). Give me examples please of what this successful transition in the past looked like for real individuals.

Again, it's magic and hopium.


The other big worry is, what if it just doesn't do what is promised and these trillions of dollars that were spent assuming magic would happen were all for nothing? I mean, other than to make a handful of extremely wealthy individuals even more wealthy at the expense of everyone's retirement funds.

I don't see what the big worry is unless you're heavily invested. Plenty of investments go bust.

Did you see the news about the shennanigans of the SpaceXaiXsocialmediasite IPO and the consequences of that?

Because of the huge amounts involved.

As people have pointed out - this also happened during the DotCom bust. Eventually all that infra got used.

Fiber buried in the ground in 1996 is still useful. Servers from 1996, not so much outside of the retrocomputing community. The bulk of those trillions of dollars on AI is not going into useful long term infrastructure. It's going into equipment that will only be useful to scrappers after its initial life is over in three to five years as the sorts of places that can handle the heat load of 25 clothes dryers on high stuffed into 3.5 cu ft of space aren't going to run second hand machines. They aren't useful as in-office developer machines unless your office has 1000A of power to dedicate to that one single machine and the air conditioner need to keep the room the server is in from bursting into flames.

The data centers are the reusable infra. Not the servers.

And I suspect those GPUs don't even have video outputs so cannot be used as video cards.

Fun fact!

During the DotCom crash, about $5 trillion in market cap disappeared.

NVidia's market cap is currently around $5 trillion.


Sounds like that other great destroyer of lives and capital - war.

> The other big worry is, what if it just doesn't do what is promised and these trillions of dollars that were spent assuming magic would happen were all for nothing?

Honestly? That's the best case scenario for humanity.

When AI can replace knowledge-based work, capital has no need for humans anymore. That's almost an ELE.


There are precedents for a lower workforce. It was not so long ago that women did not participate much in formal labor, but rather spent their creative energies improving their families and homes. That might not be an empowering choice today, and I'm not advocating for it, but it shows that the economy has in the past and probably still can get along perfectly well with a lot of sidelined labor capacity. The important thing is that the sidelined labor find some useful purpose outside the workplace rather than simply consuming welfare: in the past, domestic work like childrearing and social/emotional work like building community soaked up excess labor capacity and still had pro-social effects.

Just because they weren't paid doesn't mean women were not doing economically valued labour. The washing machine is probably the greatest productivity unlock since the steam engine.

The Washing Machine Project (https://www.thewashingmachineproject.org/) is trying to provide this benefit to people without ready access to mains electricity, by providing hand-cranked, portable washing machines. Hopefully it's more of a success than OLPC was: https://bathsdr.org/resources/the-washing-machine-project-in... shows mixed results.

There's also the worry whether productivity is real.

If you focus on writing ricketty software or overblown emails then no it isn't real. But if you think of e-gates instead of border officers then it is.

There is a basic problem with framing though. Why does the labour need to find somewhere to go, but capital doesn't? Why can't the increase in productivity be captured by labour and denied to capital?

Do you mean to imply a political/social revolution? In any other scenario I can think of when my boss gets a new machine, he captures the value from my increased productivity or the machine eliminates my job entirely.

Changing the tax system to tax capital rather than labour would probably get you 90% of the way there without great societal upheaval (capital would fight back though).

Obligatory land value tax mention

What is the next large labour-absorbing sector supposed to be?

It won't be one large one, it will be thousands of little ones.

Every time this happens throughout history (and I mean going all the way back way past industrial revolution, to dawn of agriculture, to the earliest documented history, to the mitochondria, to the earliest stars exploding...) the result of a better way to get work done is more complexity and more diversity in work done (processes for increasing entropy).

The author said not to confuse laws of nature with observations of history, and I take issue with the implication. My perspective is grounded deep in physics, chemistry, biology and anthropology and after spending 10 years fretting over what AI would do to our civilization this decade I am not worried about labor displacement.

What I am worried about is power struggles and brainwashing.


Note that several of your historical examples didn’t involve humans, and presumably most future occurrences of better work enablers won’t involve humans either. The contention isn’t whether there will be an increase in diversity and amount of work done, it’s whether any of it will be done by us. Which would only be the case insofar that there exists categories of work we do better than AI at that juncture.

> Which would only be the case insofar that there exists categories of work we do better than AI at that juncture.

I'm pretty sure this is incomplete.

It's more like whether people find the work rewarding enough to be worth doing.

In some cases it can be rewarding for reasons other than money. Even when the primary reward is money, there could be a lot of demand for human work that is worse than AI when the AI is significantly more expensive. Some customers may just prefer the human do it for any number of reasons.

It's very possible we can have a rich prosperous economy and culture with lots of AI and people working together. It's just not clear how we get there, and its not popular to take the idea seriously right now. Fear propagates faster and easier than inspiration, at least in this cultural climate.

We're less likely to get what we want if we don't aim for it.


Communism, or more accurately, mechanised collective farming practices in the early 1900s in Russia resulted in revolutions and world wars. When tens of millions of inefficient farmers were replaced by tractors needing only a fraction of the labour force the excess population was disposed of.

Sorry, bad phrasing!

They were put to work in new roles enabled by technological advancements: wielding mass manufactured rifles and operating artillery.

This has played out over and over throughout history whenever a large fraction of the population suddenly becomes surplus to requirements.

They never get to enjoy utopia. They are expended in warfare or low value forced labour until the labour pool once again matches the requirements.


You don't even need to look at the Soviets. Life for the average person in Britain became worse between 1760 until about 1920. That meant about 3 generations of people were lost.

I'm super happy about this idilic AI future my great grandchildren will enjoy...


If anything, it will be the trades. We're still a solid time away from being able to replicating what muscles and skin do - and fundamentally, there will always be a need for someone to run cable, terminate wiring and unclog a sewer pipe. At the same time, the trades are desperate for staff after the "academization" push of the last decades.

That's true for a while. But shelf restocking and order picking will probably start to go robotic within a few years. That's a manipulation problem within reach. All those mass produced humanoid robots have to do something, and that's something they can do.

Just never desperate enough to actually pay well.

Trades actually pays pretty well. The problem is that the academization push has ruined the image of manual labor.

Having to do manual labor ruined three image of manual labor. Fathers and mothers with broken bodies. Backs, knees, just physically wrecked after decades of laying tile and into crawlspaces and sweating all day out in the heat or freezing in winter. There's something to be said for an honest days work, but let's not over romanticize it.

One difference though is that the agriculture transitions had somewhere for labor to go: factories, construction, urban services, export manufacturing, etc

This transition does too. It's just not clear to most where yet.

He talked about exactly this in the article

  The optimists will tell you this is just productivity gains. The economy has absorbed automation before; agricultural employment collapsed from ninety percent of the American workforce to two percent and civilization continued. David Autor at MIT has shown that roughly sixty percent of today’s jobs didn’t exist in 1940. New technologies create new categories of work. True. But there’s a difference between an observation about the past and a law of nature, and the optimists consistently confuse the two. The agricultural transition took a hundred and forty years. Carl Benedikt Frey at Oxford has documented that the Industrial Revolution took seventy years before wages and employment recovered for the workers it displaced. In the interim, wages stagnated, the labor share of income collapsed, profits surged, inequality skyrocketed, and the political consequences included the Chartist movement and widespread social upheaval. As Frey puts it: “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.”

Yep I read the article.

I disagree with the implication the author is making with this though:

"But there’s a difference between an observation about the past and a law of nature, and the optimists consistently confuse the two"

For one, laws of nature are understood through observations. That's how science works. Secondly, I can point at many examples across history way past the industrial revolution, agricultural revolution, mitochondria, all the way back to the earliest supernovas...

Through a physics lens... With respect for the meta patterns that transcend emergence and exist in the relationship between complexity and entropy, there is a relevant law of nature.

When a method to do work more efficiently comes to be, and propagates at scale, an explosion of diversity of new kinds of work emerges.


> When a method to do work more efficiently comes to be, and propagates at scale, an explosion of diversity of new kinds of work emerges.

... work that can be done better, and cheaper, by AI.

That's the goal. The idea is not for the people who have invested trillions into AI to find another way to give you money. They think they've given enough money. Now it's time for them to make money. They do that by telling your boss that you're dead weight and that their AI agents can do the same work for a fraction of the cost without vacation days, sleep, office space, or any of the other things associated with humans.

And it's a law of nature that we have people in our species who will gladly take short-term financial gain over long-term social stability. If you can't observe that, then you're not looking very hard.


the USA already went through this when we opened up trade to China and displaced manufacturing workers in USA, the mfg centers in USA that could not adapt withered away. https://www.npr.org/2025/12/29/nx-s1-5660865/why-economists-... We also did this to a lot of Mexican farmers when the first NAFTA deal went through and small farmers in Mexico were displaced by cheap US farm imports. We keep repeating this, it’s not quite crisis theory of capitalism but workers and small businesses bear the brunt of losses every time.

Is it a secret you can't share with us?

I see this transition as more like what would happen to livestock if they banned eating meat.


Ricardian models of trade seem to hold well in real life, and they'd work well too if a lot of work was done by not just AI, but robots. As long as there's limit to the production capacity of the high tech population, there's something that is worth doing where the disadvantage of doing it by hand is lower. It does lead to lower wages there though, and that would basically require investment as to make real necessities dirt cheap, like they are in places where labor isn't worth much.

There's still the fact that claiming to be the owner of the automation, while other people aren't, will be untenable in a world with sufficient inequality. We've seen that happen before when the only justification for the difference in wealth was basically inheritance. Nobles losing land and rights, churches being dispossessed an such things. It'd be a likely outcome if 5% of the people claim to own all automation ever. But that's not about having everyone be unemployed because nobody has any economic value: That's what is unlikely.


Whenever a method to do work more efficiently comes to be and propagates at scale an explosion in diversity of work emerges. This happens at every level of abstraction in nature and has recurred throughout history all the way back to the dawn of life.

Just because I can't predict exactly what work people will do doesn't mean they won't do work. I can take a stab at a few guesses, surely others have more prescience, but the thing about complexity and fractals is it's easier to predict meta qualities than it is specific manifestations.


There is no guarantee that this transition will lead to any type of desirable or meaningful job.

Around the time "Bullshit Jobs" was published, more than a third of people said they believed their job was not meaningfully contributing to the world. Graeber goes as far as saying that more than half of white-collar jobs are actually harmful and kept around only because people associate work with self-worth. There is no way that this number will go down with increased automation.

It's not uncommon to hear Boomers say things like "kids these days don't want to work hard anymore. Everyone wants to be an youtuber, no one wants to be a teacher or a doctor or an engineer". Well, guess what? We are heading to a world where being an youtuber might be the only option.


I mean oddly enough being a Youtuber I would say is not a bullshit job. The demand for entertainment is both genuine and necessary for our well being: soldiers in war play card games and see shows, since ages past the role of entertainer has always existed.

Cranking out some online commerce app looking for margin versus providing something which by definition can't be machine replicated sure doesn't look like a meaningless pursuit to me. The devil is very much in the details.


Just because we need entertainers doesn´t mean that we would be okay of everyone had to become one. There is such a thing as market saturation.

Also, don't forget that even that can be automated away.


It doesn't. If it did there'd be massive unmet demand for labor in $sector. There is no value for $sector that is currently reporting being short roughly 100 million headcount. So unless you're counting currently non-existence social safety programs or CCC-style government make-work programs that light at the end of the tunnel is an oncoming train.

I think it's less "nature knows better" and more "we usually don't know enough"

It's also a inability to accept the cthullian horror built into nature.

Sentient eating sentient, everything being at constant warfare with everything else- the Grass wars the trees for the light. Add to that, the likelihood that nature will adapt new defenses in our lifetime, by for example having animals propagate hyper-allergenic plant-species - and you can begin to grasp why humanity does not want to look at the real, rather at the idyllic paintings we made ourselves.


We make those idyllic paintings, we dream of justice and peace and cooperation, yet we are 100% part of nature.

There are plenty of examples of cooperation in nature.

Which though, are not a sign of harmony- its more a sort of horrific balancing act at the abyss having clear winners and losers, the losers becoming cattle, organs or worse and usually they do not defect only because then some horror from the abyss eats the whole gametheory board and their abilities have atrophied -aka cooperation usually is a sort of slavery.

> its more a sort of horrific balancing act at the abyss having clear winners and losers

No need to appeal to emotions this way. At the individual level there are only losers, and we all die. At the universe level, whatever happens, happens, and it’s up to us to find beauty in it.


and it's up to us if those ugly old seals murder those pups or not :)

Well, yeah. Murder requires intent and, at least in human populations where cannibalism is not a problem, the separation with predation is clear. It’s less clear in this cases where the killing also involves eating (parts of) the victim. We don’t understand why they do it, therefore we cannot really condemn this as murder, therefore whether we should intervene and what we should do are not obvious.

Yeah, nature has a way of very quickly correcting the version of itself we picked up from cartoons

What's striking here is how long a "known" explanation can persist simply because it sounds plausible

I agree with the broader point, but I'm not sure the migration to paid email is automatic


For something as central as a Google account, it feels pretty unreasonable that a long-held personal number can be silently rejected with no appeal path or explanation


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