The gains will be substantial: The AI shock is looking a lot like the China shock, and a top economist says that’s actually good news
- 2 days ago
- 1 min read
FORTUNE — “If history is any guide, the gains will be substantial,” he said. “Just as cheaper Chinese inputs helped U.S. businesses grow and hire, AI is already accelerating business formation and productivity gains across the economy.”
Slok has previously invoked Jevons paradox to explain why AI will actually create more jobs overall, despite some employers attributing layoffs to the technology.
In 1965, economist Willian Stanley Jevons observed that following the invention of the Watt steam engine that improved the efficiency of the coal fired engine, coal consumption actually increased significantly as coal-powered energy became cheaper, incentivizing greater coal use.
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