Mo Gawdat

If you're a composer, a music composer, some composers will lose their jobs because of that.

If you're an artist that's doing graphic design, some will lose their jobs because AI comes into that.

And interestingly, even within management, I mean, I told you offline about my startup, my CTO is an AI, my chief of staff is an AI, my project management is AI's

Again, because I'm a geek, I can do those things, but that interface will come to the normal people very soon, right?

And so this may take two to three, five years, if you want, until 2030, if you're optimistic.

But they'll start to erode, okay?

I think the challenge that most people don't understand is as this erodes and as this erodes, we're already dealing with a very different economy, okay?

An economy that is spiraling, right?

a lot quicker and pushing for more cost reductions.

I mean, let me ask you this, if you don't mind, then we can come back to this.

Imagine a world where the concept of labor arbitrage that built all of our capitalist success disappears.

What do you mean by labor arbitrage?

So capitalism has always been all about using labor and capital or debt to create things at a cost that is lower than the price you sell them for.

Correct?

That's it.

You bring a team together, they make some shoes, whatever, and you sell the shoes for a dollar more than how much it costs you to make them.

So how would capitalism look like if you don't have labor arbitrage?

If cost of labor drops to an investment in a machine that can do the job, okay?

How would capitalism and banking look if because of that cost reduction, you don't need to borrow as much anymore?

And more interestingly, how does the GDP look if all of those workers no longer have the purchasing power to buy the things that you can create, you and others, right?