Luis Garicano: AI economy's equilibrium hinges on whether compute, agent autonomy, or problems stay scarce
JMateosGarcia · x · 2026-11-04
JM Mateos Garcia draws a policy implication from a discussion with economist Luis Garicano: society should keep investing in sectors that continuously generate hard problems, such as science — a use case Vannevar Bush never imagined for the "endless frontier."
Garicano's argument: the general equilibrium of an AI economy depends on what remains scarce — compute, agent autonomy, or problems. As long as compute is scarcer than the problems we want to solve with it, humans will still have a role to play in the AI economy.
Related event: NBER paper: on-demand AI genius will reshape knowledge work(3 posts)→
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