And I think what we're seeing right now with some of the layoffs is a testament to that, not AI. It's just that during the pandemic, a bunch of overhiring went on, and now AI is a convenient excuse to slim down. But I do also think AI is going to expose some roles as just not being productive ways for humans to spend their time, and therefore we must come up with new ways of spending their time.
it's just so easy for me to imagine the situation being like totally manageable but brutally mismanaged in practice in the same way as like maybe CO could have been avoided in the first place if the like Chinese response to CO was less of like a cover up and more of a like pandemic response and similarly like I could imagine a world where like the US response to CO was like way more functional but just like sometimes the the the response to societal problems is extremely dysfunctional.
So, it's hard to tell how much of like the loss of the past few years was AI versus the end of like zero interest rate policy and like the post-COVID crash. And I think it's more the latter, but like again, LLMs are still getting better.
To put this same story another way, the European car industry in the early 2020s was a prime example of greedflation i.e. companies taking advantage of the COVID shock and other disruptions and to hike profits at the expense of consumers.
There are obvious pricing problems in this scenario. With a new fab, a company can’t turn a profit selling a lagging-edge chip at the price that was previously dictated by a fully depreciated fab. Prices have to go up.
Their words now
The COVID super-cycle, plus a new China supply line that does not care about capacity economics, points to a forever glut.
Friedman and Schwartz becomes the playbook for the Federal Reserve. We have lived through this, the financial crisis. The Federal Reserve is ready to loan. Covid, the Federal Reserve does all kinds of new things, because no Federal Reserve chair wants to be in Friedman-Schwartz 2.0 that somebody writes, where they're the bad guy who let the economy meltdown.
It should be hard — exceedingly hard — to obtain the synthetic DNA needed to recreate the virus that caused the deadly 1918 influenza pandemic without authorization. But my lab found that it’s surprisingly easy, even when ordering gene fragments from companies that check customers’ orders to detect hazardous sequences.
Both the genome sequences of pandemic viruses and step-by-step protocols to make infectious samples from synthetic DNA are now freely available online.
And I notice that the tiny handful of people capable of caring about 200,000 people dying of neglected tropical diseases are the same tiny handful of people capable of caring about the next pandemic, or superintelligence, or human extinction.
If you get a check during a pandemic, you’re not going to go out and spend it at restaurants and bars, because…well, there’s a pandemic. Instead, you’re more likely to stick it in the bank, pay down debt, or pay the back rent that you owe.
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I had some theory and some evidence on my side for this prediction, and yet I ended up being very wrong about what would happen to consumption.
Real interest rates have steadily declined in all major economies for more than three decades. This decline was not caused by the Global Financial Crisis or the Covid crisis.
But perhaps the biggest question of all isn’t being asked insistently enough: Why is anyone trying to teach the world how to make viruses that could kill millions of people?
Like nuclear physics, with its potential for global catastrophe when put to destructive ends, the proliferation of pandemic biology ought to be considered a matter of international security.
Using history to understand our present is a great impulse, but it means some of the false myths we tell about the Black Death and Renaissance are doing new damage, one of the most problematic in my view being the idea that sitting back and letting COVID kill will somehow by itself naturally make the economy turn around and enter a period of growth and rising wages.
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