That profit does not come from additional extraction of capital from the Europeans. It comes from increased production efficiency. For the Europeans, the goods they purchase will have a higher value than what they’re paying for them, even if their cost to produce is lower.
FTFY
That will probably/hopefully be true in the long term. I find optimism a better financial advisor than pessimism.
The question is how/where we perceive that value creation will take place, and how the shift will impact legacy systems. E.g. Does accounting for pensions in a FIRE plan still make sense, or should this entirely fall into the “nice-to-have” category? Is the good old passive investment formula future-proof, or might the risk of disrupted companies endanger that model? Which commodities/assets are likely to see increased demand? Is the price of real estate likely to rise or fall? Are costs likely to rise or fall as a result of AI? In short, how might the changes brought by AI impact FIRE in the foreseeable future, from your perspective.
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I’m not sure I understand you correctly, but the AHV has assets worth of 40.3B.
→ Key figures Ausgleichsfonds AHV
All contributions from insured persons and employers, the federal government’s contribution, and interest income are credited to the compensation fund, while all benefits are charged to it. The compensation fund may not fall below the amount of one year’s expenditure. Its purpose is to smooth short-term fluctuations in revenue that may arise in the pay-as-you-go system due to economic conditions. If, in a given year, AHV benefit payments exceed revenues, the compensation fund ensures that benefits can nevertheless continue to be paid.
See here: Ausgleichsfonds AHV/IV/EO | Glossary
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All good questions, and I don’t have a strong opinion on any of it. There is a lot of uncertainty and I don’t know how to best position oneself. Buy NASDAQ, I suppose?
How (if at all) do such charts reflect that tools become widely used and as a result a lot of the advantage gets competed away - i.e. resulting in lower prices, rather than extremely excessive profits?
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I see this a the biggest regulatory challenge about AI, to regulate what can or cannot be used for creating or training the models.
In the meantime every publically available website will have to decide on whether to ‚protect‘ its content with a login to not make it available to AI
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I think this train has left the station. Pretty sure big tech has siphoned everything that’s publicly available for 15+ years now. Agreeing in regulation will take years, then it’ll be challenged for years, back doors will be conveniently left unmentioned, then discovered, litigated, challenged, shut, then reopened through corruption, by then the big tech will have already milked everything.
Personally I hope Musk makes some sort of full sensory experience neural interfacing so I can say “adios, world” and spend the rest of my days playing action RPGs and staring in risque films.
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Not sure if you mean 15 years in the future. If so, I would disagree. Access to new information can be closed out any day in principle.
I meant in the past, my point was that I don’t believe that “access can be cut off any day”.