Is labor a luxury in the long run? - by Philip Trammell
philiptrammell.substack.com · 7,785 words · saved by 3 readers
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In every canonical model of automation and growth, if automation is sufficiently advanced, the labor share falls toward zero. Acemoglu and Restrepo (2018) has this implication, for instance. So does Aghion et al. (2019). So do Caselli and Manning (2019), Nordhaus (2021), Moll et al. (2022), and Jones and Liu (2024). Unsurprisingly, ChatGPT believes it, and Gemini, and Claude. The logic is simple: if machines can do everything we can and they outnumber us, their owners will collect more income than we do, just as the world’s, say, non-Italians collectively earn more income than the world’s…
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