An economist's study from NYU warns that merely the expectation of transformative AI could disrupt economic stability, predicting wage reductions and a spike in interest rates. Caleb Maresca's research indicates that upcoming AI developments could triple the cost of borrowing, causing negative economic behavior such as increased saving and decreased spending. The study explores various scenarios in which businesses might prioritize cost-cutting through automation, positioning wealthy individuals to capitalize on the coming changes as conversations around a new social contract for AI usage emerge.
My findings reveal that expectations of [transformative AI] can substantially affect current economic conditions, even before any technological breakthrough occurs.
A growing expectation that AI will gut the price companies pay for work could lead to huge increases in interest rates - the cost of expected inflation on borrowed money.
The cost of starting a new business or buying a house goes to the Moon, scaring people into saving more and spending less.
Today's ultra-wealthy are already positioning to take the helm, boosting AI hype as they do.
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