A little confused as to how exactly a handful of unprofitable companies are keeping us out of a recession? GDP is not the economy. We have been in a "recession" for a while now, not that that word even really means anything anymore.
How old are you? I hate to pull rank on people, but if you're an American who wasn't yet on the job market in 2008, you've never experienced a sustained recession and don't understand the comparison you're drawing. A recession feels much worse than "things cost too much and the world kind of sucks", and workers are affected as much as businesses and CEOs are.
I'm an American who was on the job market in both 2008 and during the dotcom implosion and I'm still working in software development.
IMO we effectively are in a recession already (and have been for a while) as far as the real job market goes, the AI boom is only stopping it from showing up in stock market valuations, which is great if you're heavily invested in the stock market, but pretty meaningless if you're a laborer without assets, with debt, and trying to find a job.
Things can certainly get worse overall than they are now (and due to bad leadership, this seems inevitable), but when they do the delta between now and when we are in an official recession will be far greater felt by people who are currently being propped up by stock and home values than it will for the many people who are already struggling.
Just because it isn't as bad as 2008 yet doesn't mean we aren't in a recession. I would argue that we were also in a recession before the housing collapse actually hit. Economists will also tell you that the great recession ended in 2009 which I think we both know is bs. My point is that it's a nebulous term and the economy sucks right now despite a few companies keeping GDP artificially inflated.
I guess I'm not terribly interested in debating what exactly the term "recession" means or what the line is where it's fair to say the economy "sucks". If you think that the current state of the economy is as bad as we should expect, and it won't get worse if GDP stops rising, I'm confident you're wrong. But I don't know how to convince you of that unless you've experienced a recession in your working life.
You're right and it's actually even worse than that. If X% of the white collar jobs get replaced by ai that means there are X% more people competing for the "safe" jobs. Over time the "safe" jobs will pay less and less adjusted for inflation because the job displacement is increasing the labor supply making your labor less valuable.
Like you said there will be more people trying to do those jobs causing devaluation on the supply side, but at the same time overall demand will drop because there will be less people with comfortable white-collar jobs that make up a lot of the demand for the work those jobs perform.
Exactly. I've been thinking about the demand issue for a while now too. It makes me think either the frontier labs are really "move fast and break things" cultists that truly don't care about any second order effects, or they're 100% convinced "asi" will subsume all forms of labor. If you permanently remove a massive chunk of labor from the white collar sector that will cause a massive drop in consumer spending, which will impact company revenue, which will in turn put pressure on their ability to spend on the ai causing the displacement in the first place. Unless they monopolize all labor and cause a paradigm shift in how economies fundamentally work I don't see how they're not just shooting themselves in the foot.
> It makes me think either the frontier labs are really "move fast and break things" cultists that truly don't care about any second order effects, or they're 100% convinced "asi" will subsume all forms of labor
Either one of these shows they are anti social, anti human sociopaths that only care about enriching themselves at the cost of anything else
A little confused as to how exactly a handful of unprofitable companies are keeping us out of a recession? GDP is not the economy. We have been in a "recession" for a while now, not that that word even really means anything anymore.