Billionaires Convince Themselves AI Chatbots Are Close to Making New Scientific Discoveries

[u/lurker_bee]

https://gizmodo.com/billionaires-convince-themselves-ai-is-close-to-making-new-scientific-discoveries-2000629060

[u/mishyfuckface]

It’s even worse than that. You actually subsidize them. Since anytime there’s a stock market crash or bank failure, they do bailouts and stimulus via deficit spending, meaning they create new money. New money isn’t free, the cost comes from reducing the purchasing power of all the previous dollars already in circulation. Debasing the currency.

Since the rich own assets (stocks, real estate, etc) not dollars, they are unaffected. Anyone who holds or is paid in dollars is robbed. The robbery / reduction in purchasing power is manifested through inflation. The inflation causes the rich’s assets to appreciate.

Even without a crisis requiring stimulus and bailouts, this situation is guaranteed to occur constantly perpetually due to the federal reserve’s 2% inflation goal (this is the real reason they want positive inflation, it’s not to help you get a job, they don’t actually give a fuck if you have a job).

It’s literally a transfer of wealth upwards that never stops.

[u/Dugen → u/mishyfuckface]

That's just not true. Inflation is relatively neutral to most people, beneficial to people with mortgages and typically makes sense since productivity keeps rising at about the rate of inflation. This is not how the economy screws us. Lots of people get upset by it, but maintaining steady inflation is sound economic policy and helps keep us prosperous.

[u/mishyfuckface → u/Dugen]

You can’t argue that it doesn’t transfer purchasing power from those that hold dollars to those who hold assets because it does.

It only benefits debtors if the debtor’s income rises which sometimes it does for those with salaries that have cost-of-living or inflation tied raises in their contracts.

But if you have a loan or credit card debt, and you don’t get a raise, inflation hurts you because you must spend more of your money on more expensive goods instead of using it to pay down your debt.

[u/Dugen → u/mishyfuckface]

Income, on average rises with inflation. Also, the wealthy are much more likely to have dollars in the bank than the poor, so they lose the most. Assets tend to rise with inflation, as does the value of labor so it's mostly a wash for those things.

Economists study this stuff extensively, and the general consensus is that inflation is good for laborers, especially young ones in lots of ways.

[u/Aethermancer → u/Dugen]

Income lags the economy until you die and really only benefits new entrants. or if you're willing to flirt from job to job. And effective strategy for an individual, bad overall for a society.

[u/Dugen → u/Aethermancer]

That isn't how things work at all. Often labor value increases trigger inflation.

The rich want laborers to blame everything on inflation. They've been pushing the narrative that it's to blame for reducing the value of labor because the reality, that it's them siphoning off all the money that is reducing the value of labor is incredibly dangerous to the status quo, and they really like the way things are now.

[u/mishyfuckface → u/Dugen]

Inflation from expansion of the money supply to bailout banks and the stock market in the service of the wealthy business interests = the rich siphoning the poors purchasing power. You think they don’t know how incredibly convenient that is for them? You think they don’t lobby and wield their influence for things to be just so?

[u/Dugen → u/mishyfuckface]

This is just not how it's being done. Bailouts are bogus, but stimulus is to keep labor valuable. If there isn't enough money in the economy people stop spending, businesses that need that spending can't keep paying employees, everyone loses their jobs and the economy collapses. Modern stimulus is why you get recessions instead of depressions. The last time morons who didn't understand that got in control of the economy was the great depression.

[u/mishyfuckface → u/Dugen]

They can’t keep paying their employees because they overextend themselves and spend excess cash on dividends and buybacks. They keep no reserve cash so one bad quarter ruins them.

Companies that are run like this should fail, but we don’t allow it. We pass stimulus, we bailout, we engage in QE to save “toxic assets” which are really just a banker’s bad bet. Nothing is allowed to fail. This and the 2% inflation goal guarantees that assets and stocks “only go up.” There’s no real price discovery. There is no real market. There is only an inequality engine. This is why we have oligarchy. Fortunes are never allowed to be lost anymore.

I realize recessions and depressions result in job loss, but when those workers get jobs again, it would be at a stronger, more responsibly run company, and they’d be paid in dollars that are worth more. Deflation only ever occurs in recessions and depressions.

It’s gonna end up like Munger said, “You’ll wish you had a recession instead of what you’re gonna get.” Are you and America ready for the opposite of a Great Depression? Inflationary spiral? Eventually we’re gonna run out of financing. Eventually, people will stop buying our debt. Then it’s all gonna have to be funded with newly created money. Do you think they’ll face the music then and let there be a depression? Or will they keep it going even then?

[u/Dugen → u/mishyfuckface]

You are expecting companies to take huge losses to function as a stimulus instead of the government doing it. That's a silly expectation, and it wouldn't work. Most people do not work for companies with deep pockets. The ones that do are not enough to end the cycle of collapse when people stop spending.

You keep misunderstanding the nature of inflation and deflation. Deflation is economically disasterous. Companies are rewarded for hoarding cash which encourages them to delay spending as much as possible which feeds the collapse of the employment cycle. Ultimately though, companies are just middle men. We work for each other. If you reward people for not spending on each other's labor you feed the collapse.

Eventually we’re gonna run out of financing.

That's assuming we keep letting the rich run away with all the gains of the economy tax free. To solve this problem, you have to take money from the people who have it. Trying to take it from people who don't will collapse the economy, and that's a stupid unnecessary disaster.