Steve Hsu

No, just kidding.

The problem is particularly acute in the Philippines because it's about 10% of their GDP.

It's 2 million workers.

And those workers, that's one of the best paths into the middle class.

If that reduces by an order of magnitude in size, I think there's just really strong social repercussions in that country.

I don't know how to fix it.

I do think it's going to take some years before all of this is done.

I was just giving reasons a moment ago why technology diffusion is a bit slower than you think it will be.

Like even though the tech is ready, it takes some time before it's widely adopted, right?

So we do have some time to react, but I just can't imagine like these jobs that can be done at one-tenth the cost using AI, they are going to be replaced.

Yeah, I think the way you described it is perfect.

So I think for people who are not familiar with China, on the one hand, you might think, based on mostly Western propaganda, that China is closer to North Korea as a polity or an economic system.

On the other hand, you could say, no, it's actually closer to Singapore.

Because Singapore also is not the freest political system, right?

It's a little bit more authoritarian than maybe we're used to in the West.

So is it more like North Korea or is it more like Singapore?

And I would say it's much more like Singapore.

So you have this economy in which the people who run a particular province or run a particular city, as you said,

which could be 20 million people or even 100 million people, their incentive to rise in the party is economic and technological development.

And in a way, their job is more like that of a CEO.