CROSSPOST: JOSH BARRO: Good Things Are Good
Josh Barro’s subhead: A viral memo, proposing a 2028 market crash because of too much AI-driven productivity growth, makes little sense. This is the best of the “calm down” literature that has crossed my screen with respect to the latest viral discourse-weirdness about “AI” written by probable self-grifters who have gotten themselves way over their skis. As Josh says: Nothing in this memo at issue explains why massive productivity gains that boost most people’s real incomes would somehow collapse consumption and dump us into a liquidity trap. Turning a tsunami of good news into macroeconomic bad news is a conjuring trick, not an argument. Thus the claim that AI will crash the economy simply by being useful, without any sci‑fi singularity is easy to dismiss. It is sensible to worry about many things in this economy. “Too much productivity growth” is not on the list…
<https://www.joshbarro.com/cp/189060992>
<https://www.joshbarro.com/p/good-things-are-good>: ‘A viral memo, proposing a 2028 market crash because of too much AI-driven productivity growth, makes little sense…