OK. So someone explain it to me like I'm 5.
The big tech companies have been holding the US stock market up for years now.
They are all heavily investing in AI and their value is based on expectations of huge breakthroughs which will enrich the lives for everyone.
Some people say it's all hype, hopes snd dreams and when people figure that out everything comes crashing down. That's easy to understand.
But what if these rich dudes like Zuckerburg and Altman and the others are right? They make a machine that can do things better and faster than humans. No need to keep paying the workers anymore. Great. Mission accomplished.
How do they turn a profit at that point? If people are out of work, who is going to buy the output of the AI? Other rich dudes who already have their own AI? Governments? Is so, where do they get the money? We all know printing it isn't going to work, and if it's just going to taxes and then backto the companies, I don't understand the point. Where is the money supposed to come from?
It just doesn't make sense to me.
Give me the straight dope here. Teach me something.
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Replies (11)
Power > Money
If you have god like power what use is money?
when you think about it for a while, money never made sense in the first place 😉
People with jobs put their retirement money in and the machine buys the same 7 stocks for everyone. It floats the whole market… til it doesn’t. Look up the work of Mike Green on the systemic risks of passive investing. You’re not crazy.
Michael Burry also talks about this. Green and Burry both hate bitcoin 😂
Nvidia alone holds up the entire S&P
When NVDA correct 40% the entire
S&P will take a epic haircut
It’s pretty simple money goes away…
Working from the misconception that current "AI" can actually think, conceptualize, and solve problems, the rich would think that in the near future a legion of robots will mow their lawns, farm their fields, milk their cows and mine their iron. In this scenario they wouldn't need human workers anymore and would lose interest in money. To them money is just a tool to get other humans to do what you want without having to use direct force. If the robots would get them all the "stuff" they want there would be little need to purchase said stuff.
Human wants and desires are unlimited. There will always be work. AI is just a tool that increases productivity, freeing resources to work on other things.
Lots of otherwise smart people don’t love Bitcoin unfortunately. Taleb too. Doesn’t make em wrong about everything
Agreed. I listen carefully when Burry, Munger and Buffet speak - they’re very intelligent and have a lot of wisdom. Mike Green and Peter Schiff too.
Where does the money come from to pay for these things when most people are out of work?