[ExI] How new AI economics might change our systems

[spike at rainier66.com]

…> On Behalf Of BillK via extropy-chat



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I mentioned the USA deficit to Gemini and got a long response; maybe this. maybe that.......

BillK

 

Gemini 3.8 Flash, High Thinking Level:


>…The Bottom Line


In the short-to-medium term (the next 3–7 years), AI is likely to widen the US deficit. The combination of high borrowing costs to finance the infrastructure buildout, transitional labor market frictions, and escalating geopolitical spending will front-load costs before productivity gains fully mature.

In the long term, the $2 trillion deficit will either be:

Rendered obsolete by an explosive growth wave that dramatically lowers the debt-to-GDP ratio; or

Turned into a full-blown sovereign debt crisis if the displacement of human labor drains traditional income tax coffers before the political system can agree on how to tax machine productivity.

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Very reassuring BillK, but it missed a third possibility: deficit rendered obsolete by everybody being dead.  That would be as bad (or in some ways worse) than a full-blown sovereign debt crisis.

 

spike

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