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Currently, in the US the top 10% of earners are responsible for approximately half of all consumer spending. If AI causes this trend to continue and accelerate,

by ndiddy 20d ago

Currently, in the US the top 10% of earners are responsible for approximately half of all consumer spending. If AI causes this trend to continue and accelerate, I expect that we'd see similar dollar amounts of consumer spending, but it would be concentrated mainly in the people whose income comes from capital investments rather than from working for wages. Basically you'd see a situation like this: https://www.youtube.com/watch?v=snsXD6FwLYc https://www.youtube.com/watch?v=snsXD6FwLYc

jdjdjdkdkd 20d ago
why would the price for a movie go up if supply goes up? this video lacks basic understanding of economics and I want my minute back hell, if actors are still making movies for the love of the game and competing with cheaper (SOMEHOW! I guess we forgot about Sora already) then the price on those will actually go down oh no, more indie movies made out of the labor of love, the horror.
- vonneumannstan 20d ago
  >(SOMEHOW! I guess we forgot about Sora already) Yes if theres one thing we know about Chips and AI its that the price of equivalent performance literally never decreases...
- ndiddy 20d ago
  Well the situation being portrayed is that the real movie is a luxury item while the AI movie is an inferior good (https://en.wikipedia.org/wiki/Inferior_good https://en.wikipedia.org/wiki/Inferior_good). If the increase in wealth inequality meant that fewer people were able to afford to see the movie made by humans, then the price would go up because that's the only way to recoup the budget with fewer ticket sales. We're already seeing this to a certain extent. Movie ticket sales have been declining in the US for decades (the peak was in 2002, see https://web.archive.org/web/20260228182012/https://www.the-numbers.com/market/ https://web.archive.org/web/20260228182012/https://www.the-n...), all the box office sales records are due to a mixture of ticket price increases and inflation.
fercircularbuf 20d ago
source for the first statistic?
phn 20d ago
Sure, let's assume that is true now (I don't know and not on me to check really), but if half of consumption disappears, where will the earners earn from to continue that cycle? What if people stop paying their mortgages? Textbook recession where everyone is affected. "Capital investments" are not a magic money source if the economy is tanked.

by ndiddy 20d ago

jdjdjdkdkd 20d ago

why would the price for a movie go up if supply goes up? this video lacks basic understanding of economics and I want my minute back hell, if actors are still making movies for the love of the game and competing with cheaper (SOMEHOW! I guess we forgot about Sora already) then the price on those will actually go down oh no, more indie movies made out of the labor of love, the horror.

vonneumannstan 20d ago
>(SOMEHOW! I guess we forgot about Sora already) Yes if theres one thing we know about Chips and AI its that the price of equivalent performance literally never decreases...
ndiddy 20d ago
Well the situation being portrayed is that the real movie is a luxury item while the AI movie is an inferior good (https://en.wikipedia.org/wiki/Inferior_good https://en.wikipedia.org/wiki/Inferior_good). If the increase in wealth inequality meant that fewer people were able to afford to see the movie made by humans, then the price would go up because that's the only way to recoup the budget with fewer ticket sales. We're already seeing this to a certain extent. Movie ticket sales have been declining in the US for decades (the peak was in 2002, see https://web.archive.org/web/20260228182012/https://www.the-numbers.com/market/ https://web.archive.org/web/20260228182012/https://www.the-n...), all the box office sales records are due to a mixture of ticket price increases and inflation.

fercircularbuf 20d ago

source for the first statistic?

phn 20d ago

Sure, let's assume that is true now (I don't know and not on me to check really), but if half of consumption disappears, where will the earners earn from to continue that cycle? What if people stop paying their mortgages? Textbook recession where everyone is affected. "Capital investments" are not a magic money source if the economy is tanked.