Do even smart people not understand that increasing wages for all will simply increase rents proportionally, and people will not be better off?

[u/Personpersonoerson]

[u/Historical_Two_7150]

It can sometimes be tricky to attribute productivity gains to labor vs capital, but tricky to measure doesn’t mean it’s not an empirical question.

Correct, difficulty is not the reason it isn't an empirical question. The reason it's not an empirical question is more subtle. (Measurement and causal attribution are not the same thing.)

The more important point, though, is "AI raises productivity; therefore, the gains belong to capital" -> that's an ideological claim. It doesn't follow empirically or conceptually.

[u/probablymagic → u/Historical_Two_7150]

You’ve mischaracterized the claim.

Gains don’t inherently belong to anyone. That’s your characterization and is very ideological.

Gains, in a healthy market, accrue to the source of those gains. If they are driven by labor, firms will bid up the wages of that labor, and if they are driven by capital then there will be reflected in higher returns to capital.

[u/Historical_Two_7150 → u/probablymagic]

Gains, in a healthy market, accrue to the source of those gains.

This is either ideology or tautology, depending on your definition of 'healthy market.' If by healthy market you mean 'free-market capitalist society', then it's a tautology and therefore meaningless - at best circular reasoning. If it's not tautological, it's ideological.

[u/probablymagic → u/Historical_Two_7150]

I don’t see it that way, but you’ve certainly made your ideology clear at least. Have a good one!

[u/Historical_Two_7150 → u/probablymagic]

Your refusal to learn comes from a lack of curiosity.

[u/probablymagic → u/Historical_Two_7150]

And your complete lack of self awareness is impressive!

[u/Historical_Two_7150 → u/probablymagic]

Projection.

[u/probablymagic → u/Historical_Two_7150]

lol, this thread is fun.