Jamie Loftus

That it's a bit, yes.

So if you aren't terminally adhered to one of the stupidest subcultures in the broader tech sphere, that probably does seem like nonsense.

And it is.

But let's start with the bit about paying someone 300 grand to write about what a human's utility function is.

Now, what is a utility function?

Great question.

In economics, a utility function is the measure of welfare or satisfaction of a consumer as a function of the consumption of real goods like food.

In simple terms, it's a way of describing the satisfaction or other benefits gained by consuming a specific resource.

This is important to rational choice theory, which is a theory that states that individuals use rational calculations to make rational choices to achieve outcomes aligned with their own objectives.

Now, most people who aren't economists think that talking about the economy this way is silly because people are not, in fact, rational actors.

And in fact, we make shitty decisions all the time guided by misinformation or pressure that causes us to inaccurately interpret the potential value of something like a college education versus the cost of, say, student loans.

Right?

Wonderful example of the irrationality.

Humans are not rational.

But...

That's economics.

This is not an economics podcast.

I'm not an economist.

And the way that Bankman Freed and his fellow EAs talk about utility functions is not the same as how economists talk about it.

Right.