#economics

Yuval Noah Harari argues that money's value depends on collective belief, and that humanity's greatest strength is storytelling, which enables large-scale cooperation.

The article analyzes how AI is reshaping SaaS economics, shifting value from traditional software features to AI-native capabilities like large language models. It discusses changes in cost structures, pricing models, and competitive dynamics, noting that AI can reduce marginal costs while increasing development expenses, potentially leading to new business models and market consolidation.

A growing number of top economists are warning that artificial intelligence could lead to significant job displacement, rising inequality, and economic disruption if not properly managed, urging policymakers to take proactive measures to mitigate potential negative impacts.

The paper proves that markets are competitive (no market power) if and only if P = NP, establishing a formal equivalence between a fundamental economic condition and a central problem in computational complexity theory.

Prominent economists are raising concerns about the potential negative impacts of artificial intelligence, warning that it could worsen inequality, disrupt labor markets, and concentrate wealth and power among a small number of tech companies and individuals.

The article argues that rent control acts as a price ceiling that, in the long run, reduces the supply of housing and leads to housing shortages, deteriorating units, and inefficiencies. It contends that while intended to make housing affordable, rent control can inadvertently trap tenants by limiting mobility and distorting housing markets.

The article compares today's AI-driven economy to the Industrial Revolution's "Engels' pause," when technology enriched owners but suppressed wages. It warns that without policy intervention, AI could similarly concentrate wealth and stagnate workers' living standards. The author urges sharing AI's productivity gains broadly to avoid repeating history's inequality.

Geoff Huston analyzes Starlink's economics, noting that while SpaceX has revolutionized launch costs with reusable rockets, Starlink requires massive scale—potentially millions of subscribers—to justify its satellite constellation investment. The article explores whether Starlink's current revenue can sustain SpaceX's ambitious Starship development and overall business model.

The article explores how AI might affect corporate outsourcing decisions, arguing that AI could reduce outsourcing by making in-house work more efficient, but also enable more outsourcing by lowering coordination costs. The outcome likely depends on whether AI becomes a general-purpose technology that firms integrate internally or a specialized tool best used through external vendors.

The article discusses the concept of token-based economies, exploring how digital tokens can be used to incentivize behavior, reward participation, and create new economic models within decentralized networks and platforms.

Economists Anton Korinek, David Autor, and Harry Gimbel discuss the complex impact of AI on the labor market, noting that AI could both displace and augment jobs, potentially widening inequality while also creating new opportunities if properly managed through policy and education.

The Cantillon Effect describes how new money injected into an economy does not affect all prices evenly; those who receive it first benefit at the expense of those who receive it later, distorting economic structures and causing malinvestment.

This paper examines how rational incentives within supply chains can lead to collective irrationality, or "madness of crowds." It analyzes the mechanisms by which individual profit-maximizing behaviors aggregate into systemic inefficiencies, speculation, and boom-bust cycles in supply networks.

The article explores the intersection of monetary policy and libertarian principles, examining how different monetary systems align with libertarian values of individual freedom and limited government. It critiques central banking and fiat money while discussing alternatives like free banking, commodity money, and cryptocurrencies as potential alignments with libertarian thought.

This paper examines how cartels can design agreements that appear competitive on the surface—such as uniform pricing or matching policies—while still coordinating to maintain high prices and reduce output. The authors develop a framework to identify such mimicry and assess its welfare effects.

Paul Krugman discusses the recent decline of the U.S. dollar's dominance in global finance, attributing it to shifting economic policies and geopolitical factors that have eroded confidence in the dollar's once-unquestioned supremacy.

The article argues that the open source software movement is increasingly dominated by wealthy individuals who can afford to contribute without financial compensation, while those who depend on open source for their livelihood struggle. It suggests that this dynamic creates a divide where unpaid labor by the rich devalues the work of professional developers who cannot afford to work for free.

This paper examines F. A. Hayek's vision for the future, particularly his ideas on the evolution of liberal order, the role of government, and the spontaneous development of complex systems. It explores how Hayek's thought connects to technological progress and the challenges facing modern societies.

This paper explores the economic implications of artificial general intelligence (AGI), applying basic economic principles to analyze its potential impact on productivity, labor markets, and economic growth, while considering how AGI might differ from previous technological advances.

The era of zero interest rates led tech companies to accumulate bad habits and unsustainable practices fueled by cheap capital. As rates rise, these companies now face a painful correction, forced to cut costs and refocus on genuine demand rather than speculative growth.

The article applies the economic theory of comparative advantage to software development, arguing that developers and teams should focus on tasks where they have the greatest relative efficiency, rather than trying to do everything. It suggests that specializing and leveraging existing tools, libraries, and services can lead to higher productivity and better outcomes in building software.

Alan Greenspan, the former Federal Reserve chairman who served from 1987 to 2006, has died. He was known for his influential yet controversial tenure overseeing U.S. monetary policy, including the dot-com boom and the 2008 financial crisis.

Prediction markets remain unpopular due to regulatory hurdles, liquidity challenges, and a preference among most people for free discussion or entertainment over placing financial bets on uncertain outcomes.

The article explores the concept of AI evolving from a tool to a distinct factor of production, akin to land, labor, and capital. It discusses how AI's unique capabilities—such as autonomous decision-making and continuous learning—could fundamentally reshape economic models, productivity, and the distribution of value in the economy by 2026.

The article criticizes Bernie Sanders, arguing that his economic arguments mirror those of Donald Trump in their lack of sound economics, characterizing both as driven purely by ideological wishful thinking rather than economic sense.

Economists who long advocated for prediction markets as a way to improve forecasting are finding the reality disappointing, as these betting platforms have not lived up to their theoretical promise and instead face issues with accuracy, manipulation, and legality.

Anthropic has hired an economist known for his unconventional views on human survival, signaling the AI company's interest in long-term risks and existential threats posed by advanced artificial intelligence.

The article argues that modern economic systems are not distinct market economies but rather tributary systems centered on debt to a central authority, with money and capital serving as tools for extracting surplus to sustain the center's power. It challenges conventional economic narratives by framing capitalism as a form of tribute extraction rather than free exchange.

In this 2017 video essay, the speaker argues that highly targeted digital advertising has become so efficient at reaching only likely customers that it no longer achieves the broader brand awareness needed for effective marketing, essentially preaching to the choir while failing to attract new audiences.

Robert Schiller argues against excessive pessimism about AI's economic impact, warning that "doommaxxing" over job losses ignores historical adaptation. He suggests focusing on constructive policies and human resilience rather than catastrophic predictions.