Is A.I. Eating the Labor Market? + The Latest on the Pentagon, OpenClaw and Alpha School

The podcast explores the economic uncertainties surrounding AI's rapid development and its potential impact on the labor market and GDP growth. Economist Anton Korinek provides insights on the disconnect between current economic data and market reactions to AI advancements, emphasizing that while current data shows minimal impact, expectations of future AI capabilities are driving market anxieties. Korinek addresses the concept of "ghost GDP," where AI-driven productivity may not translate into worker benefits, and discusses scenarios ranging from slow to hyperbolic GDP growth, contingent on responsible AI deployment. The conversation also covers the gap between frontier AI capabilities and their actual implementation in the workplace, and the potential for AI to substitute human labor, challenging traditional economic fallacies.