GDP unchanged despite 3x productivity boost due to zero demand elasticity
Afinetheorem · x · 2026-08-30
Uses a brick-stacking analogy to explain the productivity paradox: if stacking speed triples but demand is zero and workers have no other skills, GDP doesn't change. Judging the economic impact of tech requires demand elasticity and cross-task labor elasticity.
Related event: Why AI Productivity Gains May Not Lift GDP(2 posts)→
More from AGI Musings
- Professor stops assigning take-home essays post-ChatGPT, fears loss of writing skills — mjdramstead · 2026-08-30
- Demis Hassabis's One-Hour Cambridge Lecture on the Future of AI — ifioknkem · 2026-08-30
- 0→1 is hard; shipping speed is the only flywheel — vaibhavbetter · 2026-08-30
- Economist Explains Why Efficiency Gains May Not Boost GDP — Afinetheorem · 2026-08-30
- If an AI model could never lie, would progress become defense? — lovettsendit · 2026-08-30
- Post-Labor World: How Survival-Free Existence Redefines Love — VraserX · 2026-08-30