GoKawiilShall I end this life a pauper? If AI can do all work at human level or better, what stops corporations replacing us all with AI? This is the permanent underclass meme. The idea is: within a few years, all white collar work will be automated by AI, at which point there is no social mobility. The main way people cope is, they tell themselves: if I work hard, accumulate capital, maybe join one of the big AI labs, I might secure my place in the future.
I want to argue this is a fantastically short-sighted view: if there is a permanent underclass, you won’t escape it by owning property, or shares in Anthropic or OpenAI, or guns, or anything else. And neither will the billionaires. You, me, Sam Altman, Dario, everyone who is made of flesh and blood, will be disempowered and replaced by machines.
The rest of this post elaborates the argument. First I explain how most workers will be replaced (if it’s not obvious), then how the “permanent overclass” will be disempowered, and finally how the government will be disempowered.
How Workers Will Be Replaced
Let’s start from this premise: AI can do all cognitive and physical work, at human level or better, and cheaper than humans. I can’t prove this will happen, but the goal of this post is to argue that if it happens, then everything else follows. And it’s absurd to think it can’t. Five years ago this technology barely existed: if you sent a transcript of a conversation with Claude Fable back in time to 2020 or thereabouts, nobody would believe it was real.
So, the year is 2036 (likely earlier), businesses have replaced most human workers with AI in the pursuit of profit maximization. Corporations are a small raft of human executives, floating on top of a vast ocean of AIs and robots. The AIs can do all cognitive and physical work at human level or above, and they are cheaper overall.
Imagine a pyramid. At the base you have the AIs and robots doing all economic activity. At the top you have the state, which has the monopoly on violence. The state enforces, and therefore can alter the definition of, property rights. In the middle you have this hair-thin layer of people with shares in the companies that foomed and catabolized the whole economy: the permanent overclass. They own the companies, maybe sit on the board, some might still be CEOs but it’s a purely ceremonial role since AIs do all the actual organization work.
Where are, you know, the rest of us, in this picture? Well, the future doesn’t need us. Maybe there’s enough human demand that we’re not all jobless but rather underemployed, in some dead-end economic diverticulum. The relational economy: you’re paid to put a human face on things, or, doctors keep their job as a human liability crumple zone around the AI. Or maybe the dead Internet becomes de facto UBI and we’re all engagement farmers. Anyways, we’re not dead yet, but we are completely disempowered, and there is zero social mobility since there are no more talent ladders to climb. Maybe sometimes one of the elites notices a bright young thing among the underclass and elevates them.
You might object: if we’re all jobless, who’s paying for everything? This is trivially answered: the state acts like the heart, taxes are venous blood and welfare is oxygenated arterial blood. The government pays Raytheon for missiles, the money cascades down the economy through factories, aluminium smelters, mines, transport companies, all staffed by AIs buying and selling from each other. The government takes a cut of all economic activity, pays out welfare, the unemployed masses buy food and pay rent, the supermarkets, farms, logistics network, etc. are all staffed by AI.
How The Rich Will Be Replaced
... continue reading