[pdonis]

Not really. Automation is a tool that amplifies human productivity. It doesn't replace it--humans still have to be involved.

AI, it is claimed, will eventually make humans completely unnecessary in the production process. I'll believe it when I see it. AI is an automation tool--possibly a more sophisticated one than previous ones, but still a tool. It will still need humans to be involved.

[mitthrowaway2]

Even if you don't believe it, it's the basic premise of the article and the conversation that we're having about the "dead economy". You don't have to believe it in order to have a conversation about it as a hypothetical, and that's the conversation that is happening here.

So if full automation doesn't happen, we have the status quo, which everyone understands already. If it does happen and production decouples from human labor completely, how do we allocate the fruits of that production?

[pdonis]

> it's the basic premise of the article

Only with respect to some kinds of production. The article is talking about AI replacing "cognitive labor", which it defines rather vaguely. But, for example, the article does not seem to be claiming (nor are AI proponents claiming) that AI will be able to fix your car or your plumbing or your HVAC when it breaks, or cut your hair, or produce food, or many other things. So it is not talking about AI decoupling all forms of production from humans.

The article does then go on to talk as if the decoupling is for all forms of production, when it talks about the political crisis that would produce. But that just means the article is going way beyond its premise at that point.

There is a better and more realistic premise that the article briefly mentions, but then skates on by:

"[F]irms are deploying...“excessive automation,” using AI to kill jobs without generating significantly lower production costs, while imposing substantial social costs. The technology, in many applications, isn’t good enough to justify the displacement it causes."

In other words, a bubble, that takes up a large enough segment of the economy to cause a serious disruption when it pops. And the pop is not about allocation of what gets produced: it's about production crashing because of misallocation of capital. But the crash in production won't be in the sectors that produce material goods like food: as I said above, AI proponents aren't claiming that AI will decouple that from humans. The crash will be in sectors where a lot of the "value" produced is already questionable anyway. It will cause disruption because there are many people whose on-paper wealth is tied up in the notional value assigned to those things, which could evaporate overnight if it turns it that it was all a bubble and the bubble pops. But there's any easy way to avoid that: don't be one of those people. Or, if you can't avoid being exposed to that risk because of whatever particular area you work in, hedge against it by not having all of your wealth tied up in the notional valuations of those things. Which is a prudent thing to do anyway.