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This is the trade-off to connectivity and removing frictional barriers (i.e., globalism). This is the economic equivalent of what Nick Land and Spandrell called the "IQ shredder". Spandrell said of Singapore: Singapore is an IQ shredder. It is an economically productive metropolis that
sucks in bright and productive minds with opportunities and amusements at the
cost of having a demographically unsustainable family unit.
Basically, if you're a productive person, you want to maximize your return. So, you go where the action is. So does every other smart person. Often that place is a tech hub, which is now overflowing with smart guys. Those smart guys build adware (or whatever) and fail to reproduce (combined, these forces "shred" the IQ). Meanwhile every small town is brain-drained. You hometown's mayor is 105 IQ because he's the smartest guy in town. Things don't work that great, and there's a general stagnation to the place.Right now, AI is a "capital shredder". In the past, there were barriers everywhere, and we've worked hard to tear those down. It used to be that the further the distance (physically, but also in other senses too, like currencies, language, culture, etc.), the greater the friction to capital flows. The local rich guy would start a business in his town. Now he sends it to one of the latest global capital attractors, which have optimized for capital inflow. This mechanism works whether the attractor can efficiently use that capital or not. That resource inflow might be so lucrative, that managing inflow is the main thing it does. Right now that's AI, but as long as present structure continues, this is how the machine of the global economy will work. |
Not every smart person (or even most) are engineers, and of the ones that are they don't all move to tech hubs, and the ones that do not all of them can't get laid.
And I'll give you a great reason why it's hogwash, the "brilliant" engineers that can't get laid in Singapore are the same "brilliant" engineers that can't get laid in their home town