Growth Ritual #52
📋 IN THIS ISSUE: Post-AGI Economics: Capital, Labor, and Human Ambition
🎙️ AUDIO DEEP DIVE OF THIS ISSUE:
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Post-AGI Economics: Capital, Labor, and Human Ambition
You probably think your skills and hard work will always be valuable in the marketplace.
But what if everything you believe about economic mobility is about to be upended?
By 2030, your labor might be worthless—but your capital could make you part of a new global aristocracy.
Are you positioned for the AI revolution?
Hard to imagine, right?
We've grown up in a world where putting in the hours, developing skills, and working hard is supposed to pay off. The American Dream and all that. But what happens when machines can do everything we can do, only better, faster, and without coffee breaks or vacation time?
This isn't some far-off sci-fi scenario anymore. The development of Artificial General Intelligence (AGI) is accelerating, and it's set to rewrite the economic playbook we've been following for generations.
Think about it: if an AI can write better code than programmers, create more compelling content than writers, diagnose patients more accurately than doctors, and manage companies more efficiently than CEOs—what's left for us humans to do?
According to economic forecasts, we're looking at a future where having money to invest might be the only real path to security and prosperity.
Your labor—the time and skills you sell—could become dramatically less valuable.
Meanwhile, those who already have significant capital to invest in these AI systems will see their wealth multiply.
It's like we're heading toward a modern version of feudalism, where instead of lords owning land, the new aristocracy will own the AI systems that produce everything society needs.
"But I'm entrepreneurial” you might be thinking. "I'll find a way to build something valuable".
That's the thing—entrepreneurship itself could be fundamentally changed.
Venture capital firms might soon run hundreds of startup attempts simultaneously using AI, without needing a single human founder.
The traditional path of building a business from scratch through sweat equity could become as outdated as horse-drawn carriages.
What we're potentially facing is a world split into two distinct classes: those who own significant capital and those who don't. And unlike today's world where talent, education, and hard work can help you climb the ladder, this new economic reality might have ladders that are permanently pulled up.
The best-case scenario? Something like "Norway-plus"—a society where everyone enjoys a comfortable standard of living through mechanisms like Universal Basic Income, but where genuine economic mobility is limited. Your ambitions might be confined to social competition within your class rather than transformative wealth creation.
The worst-case scenario is considerably darker: a world of unprecedented inequality, where AI trillionaires wield power that would make today's billionaires look like middle management, and where your economic fate was largely determined by how much capital your family had when AGI arrived.
Actions for Transition Period
So what can you do now, while we're still in the transition period?
First, if you have the means, start thinking about building capital rather than just selling your labor. This might mean investing in the stock market, in real estate, or even directly in AI companies that are positioning themselves for this future.
Second, develop skills that complement AI rather than compete with it. Emotional intelligence, creativity applied in uniquely human ways, and the ability to work alongside AI systems might remain valuable far longer than technical skills that AI can replicate.
Third, get politically engaged. The transition to this new economic reality isn't inevitable in its worst form. Policy choices about how AI is owned, how its benefits are distributed, and what safety nets are put in place will determine whether we end up with a dystopian class system or a broadly prosperous society.
The truth is, we're standing at a crossroads that few people fully appreciate. The decisions we make collectively and individually over the next decade could shape economic reality for centuries to come.
The question isn't whether AGI will transform our economy—it's whether we'll be ready when it does. And whether we'll ensure that this transformation benefits humanity broadly rather than creating a permanent divide between the capital-rich and everyone else.
Takeaways for Businesses
So, what can businesses do to prepare for a future where AI is the norm?
Here are a few takeaways:
Focus on developing skills that are complementary to AI: Rather than trying to compete with AI, focus on developing skills that are complementary to it. This could include things like critical thinking, creativity, and problem-solving.
Invest in AI, but don't rely solely on it: AI can be a powerful tool, but it's not a replacement for human intuition and judgment. Make sure you're using AI to augment your business, rather than replace it.
Prioritize human-centered innovation: As AI becomes more prevalent, it's going to be more important than ever to prioritize human-centered innovation. This means focusing on solutions that are designed to improve people's lives, rather than just trying to make a quick buck.
Be prepared for a world where entrepreneurship is no longer a viable path to success: Labor-replacing AI will make entrepreneurship uncertain, and that VC funds might be able to directly convert money into hundreds of startup attempts all run by AIs, without needing human entrepreneurs.
In conclusion, the advent of AGI is a double-edged sword for small businesses. While it has the potential to bring about tremendous benefits, it also raises some serious questions about the future of work and human ambition. By being aware of these potential downsides and taking steps to prepare, small businesses can ensure that they're well-positioned to thrive in a world where AI is the norm.
Call to Action: So, what do you think? Are you ready to start exploring the potential benefits and drawbacks of AI for your small business? Let us know in the comments! And if you're interested in learning more about how to adapt
The Bold Predictions
Human labor will no longer be valuable: With the advent of AGI, human labor will no longer be necessary, and capital will be the only thing that matters.
Money will be able to buy results in the real world better than ever: In a post-AGI world, those with money will be able to achieve their goals and buy results more easily than ever before.
People's labor will give them less leverage than ever before: As AI takes over more tasks, human labor will become less valuable, and people will have less leverage to negotiate for better pay or working conditions.
Achieving outlier success through labor will be impossible: With AI doing most of the work, it will be difficult for humans to achieve exceptional success through their labor alone.
There will be no transformative leveling of capital: The wealth gap will not be bridged, and those who already have capital will continue to accumulate more, while those who don't have much capital will struggle to catch up.
The incentives of states and people will no longer be aligned: As AI becomes more prevalent, the interests of governments and individuals will diverge, leading to potential social and economic upheaval.
States will have less reason to care about the demands of their humans: With AI taking over many tasks, governments may have less incentive to listen to the needs and concerns of their citizens.
A permanent aristocracy will emerge: Those who have the most capital will have the most power, and those who don't have much capital will be left behind, creating a permanent underclass.
Entrepreneurship will become uncertain: With labor-replacing AI, entrepreneurship may no longer be a viable path to success, as VC funds may be able to directly convert money into startup attempts run by AIs.
VC funds will be able to directly convert money into hundreds of startup attempts all run by AIs: The rise of AI will enable VC funds to create multiple startups without the need for human entrepreneurs.
The best-case scenario will be a world like a more unequal, unprecedentedly static, and much richer Norway: In the best-case scenario, everyone will have a great standard of living, but the wealth gap will be significant, and social mobility will be limited.
The worst-case scenario will be a world where AI trillionaires have near-unlimited and unchecked power: In the worst-case scenario, those who control the AI will have immense power and wealth, leading to a potential dystopian future.
Universal Basic Income (UBI) may become necessary: As AI replaces human labor, UBI may be necessary to ensure that everyone has a basic level of comfort and security.
Human ambition and innovation will be stifled: The rise of AI may lead to a decline in human ambition and innovation, as people may feel less motivated to work and create when AI can do everything better and faster.
The only realistic forms of human ambition will be playing local social and political games within your social network and class: In a post-AGI world, human ambition may be limited to social and political games, rather than pursuing meaningful work or creative endeavors.
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