Great interview with Erik Brynjolfsson on the potential impact of AI on the economy.
"In particular, if the technologies are mainly used to [...] replace humans with machines, it is likely to lead to lower wages and more concentration of wealth and power as capital substitutes for labour. But, if we use the technology mainly to augment our skills, to do new things, then it is more likely to lead to widely shared prosperity and higher wages."
And also: "Current tax policy and investment credits encourage capital over labour. Marginal tax rates on capital are about half of what they are on labour [...]. That biases entrepreneurs towards trying to find capital-heavy solutions instead of ones that involve labour. I do not see a public policy reason for having that kind of a bias. That is just one example of where the policy needs to take into account what it is doing and how it is shaping the trajectory of technological advances."
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