Loading ...Can AI reduce inflation? I doubt it … but would like the Tent to read what this commenter has to say
In reply to a post by Tavi Costa https://x.com/TaviCosta/status/1805743965183889833, this commenter David Levenson made some “interesting extrapolations” … I’m trying to be polite here, though my sarcasm is bubbling 😉
https://x.com/levenson_david/status/1805758198755778931
and https://x.com/levenson_david/status/1805779703472497015
I’ll end with: what is David Levenson smoking? Couldn’t help it.
Opinions?
GL
Of course AI can reduce inflation. The future is going to deflate. for example, if you subtract a large percentage of the population due to Covid shots then the drop in alll forms of demand from housing to consumption will be very sharp. Unemployment will rise, jobs will not be returning, prices of commodities and manufactured goods could collapse leading to further ruin of the manufacturing economy. AI succeeds in having the same impact since its leverage is against employment and incomes. Who will afford high priced homes in a minimum wage economy of the future where our youth is wrapped up in the underpaid gig economy and our seniors are dropping expensive homes like litter on a New York street?
Good Points Farmer
I value your thoughts, Sir Farmer.
However, by its very definition, (e.g. how the govt.’s well known CPI “defines” inflation) inflation, in varying %ages, is already present, or may even accelerate in, the things that matter more. Food. Rents. Education. Car prices. Gasoline. Heating. Air fare.
Yes, in general AI will cause a rise in unemployment.
But let me share my somewhat oversimplified learnings.
In the last 3 decades, ridiculously cheap offshore call centers in 3rd world nations led to huge cost savings for businesses.
Out of all those moderately paying customer support jobs that used to be in the US, many got converted to Walmart employees, grocery store workers, and fast-food jobs, as these erstwhile customer support (in US call centers) workers became unemployed in that offshoring wave.
Then the chorus grew every year for increasing the minimum wage of these fast-food joints that paid employees by the hour.
If my observation is correct, the number of choices for fast food has doubled or tripled in the last 25 years in the US for burgers, Tex-Mex fast-food, frozen yogurt, Boba tea etc. So that means a lot more eating joints are there and a lot more employees.
So, AI will create some other wave, yes.
But I trust the human beings who have to survive and put food on the table to find some other “gigs”. (Many call center workers became e.g. Uber/Lyft drivers, or Doordash, Uber Eats delivery people, or Amazon truck drivers)
All this will cause the lower-middle class to keep burgeoning.
However, I’m as of now, more receptive of the inflation path as outlined by the likes of Dimon.
https://citizenwatchreport.com/jpmorgans-jamie-dimon-warns-of-potential-u-s-hard-landing-amid-stagflation-and-persistent-inflation/#google_vignette
We’ll see.
I’m just a 48 year old punk, as Sir Silverboom politely complimented the other day!
Thank you!
GL
I couldn’t agree more.