Robot Econ in AER
In the May ‘014 American Economic Review, Fernald & Jones mention that having computers and robots replace human labor can dramatically increase growth rates:
Even more speculatively, artificial intelligence and machine learning could allow computers and robots to increasingly replace labor in the production function for goods. Brynjolfsson and McAfee (2012) discuss this possibility. In standard growth models, it is quite easy to show that this can lead to a rising capital share—which we intriguingly already see in many countries since around 1980 (Karabarbounis and Neiman 2013)—and to rising growth rates. In the limit, if capital can replace labor entirely, growth rates could explode, with incomes becoming infinite in finite time.
For example, drawing on Zeira (1998), assume the production function is
Suppose that over time, it becomes possible to replace more and more of the labor tasks with capital. In this case, the capital share will rise, and since the growth rate of income per person is 1/(1 − capital share ) × growth rate of A, the long-run growth rate will rise as well.6 …
Of course the idea isn’t new; but apparently it is now more respectable.
When the rain falls on the fire, it is put off but the green grass already has been torched as we say the when the dry grass burns, the green grass also burns. Where are the honest ones will become dishonest if they keep on going to the hoses of the dishonest, that is valid here too. I know this a blow up to certain extent but there is hole that of truth in the politics but the not all speak right, and few speak of others, as they speak more of themselves the egoists. The word for these. The Conservative Party is facing fresh "cash-for-access" allegations over its failure to report private meetings between the Prime Minister and party donors. Disgraced former Tory Party treasurer Peter Cruddas, claimed to have direct access to David Cameron on at least 13 occasions. Details of the meeting emerge a week after the Prime Minister was forced to disclose the names of donors who he had entertained in his Downing Street flat and at Chequers, his country retreat. The Downing Street gatheringon January 11 last year has been revealed by Lord Hesketh, who was sacked as chairman of the foundation at the same meeting. "It was in a ground floor office," said the peer, who previously served as Conservative party treasurer and as a Tory minister in the 1980s and 1990s. Sir, I was born under the strongstar that is not my error, if my mom would hold on I would be Leo, I think they are brave and they do not say untrue stories, but then that is it. He also claimed to have secured a £1m donation. "There is one very simple solution to all of this - state funding for political parties. But right now, at a time of austerity, it would seem that politicians would be the last thing the public would wish to pay for."
It's an odd omission. Counter-signaling?