I've just finished reading a 21st-century take on the French Revolution. Louis 16th comes over as a hapless, ill-equipped duffer similar to King Charles, the English monarch. But to his credit, for 10 years prior to the Terror, Louis pleaded with the aristocracy to pay some tax. They stared him down, and instead preferred to keep hunting and attending balls. Appropriately, many also lost their heads in the blood-letting that followed in 1792
Anti-AI sentiment seems to me to be American led (that’s not to say it’s not in Europe, but just less so). I think this is due to how existential losing your job is to an American. When Dario goes on the news and says we will replace X jobs by next year, people feel attacked. If you lose a job in America, and can’t get another one quick, you’re FUCKED. There’s no support. This is where people are getting their anger from, and then displaying it by using water or economics as their rallying point (even if a lot of that just isn’t true).
Great piece. As you indicated, I expect the chaos and disarray in this country to become even worse, as we have reached the tipping point where we can no longer "fix ourselves".
What amazes me: we are clawing each others’ eyes out over immigration (okay, I get the frustration) and the job losses from “illegal aliens” while, at the exact same moment, we are spending trillions of dollars to actively build literal aliens 👽 to take every single job we have. The risk to American prosperity isn’t pouring across the Mexican border. It’s pouring across the Silicon Valley border.
Agreed. All those rough 'n tough MAGA men that are terrified of the tiny, poor, brown skinned people that pick all of our produce, clean our shitters, and cook our food 🙄
I get the loss of status frustration. I do. They aren’t wrong about that. But…BUT…at the same time we are facing the biggest potential threat to our prosperity and sovereignty in the history of our species. Let’s take that as seriously as we should.
You are actively advocating for human trafficking and indentured servitude, which has frequently been categorized as worse than slavery. If that sounds alarming, trust your gut. The people cleaning your shitters are worked to death for pennies to pay off debt. High School and College students should be doing those jobs on the books, under fair labor laws.
This is Hurricane Katrina a week from landfall while Bourbon Street parties on and Big Easy politicians smoke cigars and drink Sazeracs.
And we have the WORST, most divisive leadership in American history at exactly the moment we need a strong, uniting leader.
This is the moment to prepare for landfall. For political and redistribution vision and absorption. Instead, we have Trump.
But, to be clear (and fair) the state of California - Progressive and visionary, will get it first and worst. As Silicon Valley and Hollywood gut payrolls, watch housing markets collapse, 2007 style foreclosures, commercial real estate ghost buildings and seek a redistribution Robot Tax only to chase their rich citizens into the loving arms of Florida and Texas. California - the architect of this all - will become Detroit 2.0 - with hotter women and better beaches.
This is coming. And those left behind demanding the basics from a bankrupt safety net, fleeing capital base, and mass unemployment?
Great read! It makes me sad to think that there is a relatively simple solution to stop things from spiralling out of control, but nobody has the political will to do it. I fear we're on a path of no return.
Interesting that 52% of people with household incomes > 200K are positive about AI. Not sure all the 200K household incomes are not in jobs that would be affected negatively by AI as 2 incomes both in mid corporate level jobs could be eliminated. Be curious if you look at upper 1% income, they may be even more positive. Suspect stock ownership of AI companies is a big motivator!
Ed, Have you explored balancing income inequality against contribution inequality in any of your works? If so, I’d love to read.
Your closing reference to past conclusions that taxation is the fix overlooks the significant contribution inequality that accompanies the income inequality you center your narrative on.
Our tax and welfare structure traps half of Americans in government-incentivized poverty or near-poverty while the top 20% serve as the state's primary "tax crop."
Consider:
National Federal Income Tax:
- Top 1%: 40%
- Top 20%: 72%
- Top 50%: 97%
- Bottom 50%: 3%
New York State Income Tax:
- Top 1%: 46%
- Top 20%: 80%
- Top 50%: 99.8%
- Bottom 50%: 0.2%!
NYS is the highest taxed state in the US and the contribution of the bottom 50% in NYS is 93% LOWER than the national average.
Punishing success though excessive taxation has no basis in history or economics.
We must incentivize the bottom 50% to participate actively rather than remain disengaged.
Excellent piece. As economists on your show have pointed out, there are many ways to close tax loopholes on the wealthy and corporations and many ways to support labor, but NONE of our elected officials are doing anything and the U.S. is poorer for it and our trajectory is downward.
I've just finished reading a 21st-century take on the French Revolution. Louis 16th comes over as a hapless, ill-equipped duffer similar to King Charles, the English monarch. But to his credit, for 10 years prior to the Terror, Louis pleaded with the aristocracy to pay some tax. They stared him down, and instead preferred to keep hunting and attending balls. Appropriately, many also lost their heads in the blood-letting that followed in 1792
What was the book?
Anti-AI sentiment seems to me to be American led (that’s not to say it’s not in Europe, but just less so). I think this is due to how existential losing your job is to an American. When Dario goes on the news and says we will replace X jobs by next year, people feel attacked. If you lose a job in America, and can’t get another one quick, you’re FUCKED. There’s no support. This is where people are getting their anger from, and then displaying it by using water or economics as their rallying point (even if a lot of that just isn’t true).
Great piece. As you indicated, I expect the chaos and disarray in this country to become even worse, as we have reached the tipping point where we can no longer "fix ourselves".
What amazes me: we are clawing each others’ eyes out over immigration (okay, I get the frustration) and the job losses from “illegal aliens” while, at the exact same moment, we are spending trillions of dollars to actively build literal aliens 👽 to take every single job we have. The risk to American prosperity isn’t pouring across the Mexican border. It’s pouring across the Silicon Valley border.
Agreed. All those rough 'n tough MAGA men that are terrified of the tiny, poor, brown skinned people that pick all of our produce, clean our shitters, and cook our food 🙄
I get the loss of status frustration. I do. They aren’t wrong about that. But…BUT…at the same time we are facing the biggest potential threat to our prosperity and sovereignty in the history of our species. Let’s take that as seriously as we should.
You are actively advocating for human trafficking and indentured servitude, which has frequently been categorized as worse than slavery. If that sounds alarming, trust your gut. The people cleaning your shitters are worked to death for pennies to pay off debt. High School and College students should be doing those jobs on the books, under fair labor laws.
Wow....good job missing the point! 😂
Enlighten me.
I've got a better idea - increase your reading comprehension skills 😁
Education and training will open opportunities and raise the income level.
Kids can’t read, write or do math. We’re dooming them to a life of misery and poverty.
Sorry but more taxation and regulation won’t fix that.
Bingo. We must incentivize participation from the bottom 50%. 54% of U.S. adults ages 17-74, roughly 130m people, read below a 6th grade level!!
I love your newsletter! They are all so good, especially this one.
This is Hurricane Katrina a week from landfall while Bourbon Street parties on and Big Easy politicians smoke cigars and drink Sazeracs.
And we have the WORST, most divisive leadership in American history at exactly the moment we need a strong, uniting leader.
This is the moment to prepare for landfall. For political and redistribution vision and absorption. Instead, we have Trump.
But, to be clear (and fair) the state of California - Progressive and visionary, will get it first and worst. As Silicon Valley and Hollywood gut payrolls, watch housing markets collapse, 2007 style foreclosures, commercial real estate ghost buildings and seek a redistribution Robot Tax only to chase their rich citizens into the loving arms of Florida and Texas. California - the architect of this all - will become Detroit 2.0 - with hotter women and better beaches.
This is coming. And those left behind demanding the basics from a bankrupt safety net, fleeing capital base, and mass unemployment?
The Libertarian Mind Virus...love it.
Great read! It makes me sad to think that there is a relatively simple solution to stop things from spiralling out of control, but nobody has the political will to do it. I fear we're on a path of no return.
Interesting that 52% of people with household incomes > 200K are positive about AI. Not sure all the 200K household incomes are not in jobs that would be affected negatively by AI as 2 incomes both in mid corporate level jobs could be eliminated. Be curious if you look at upper 1% income, they may be even more positive. Suspect stock ownership of AI companies is a big motivator!
Ed, Have you explored balancing income inequality against contribution inequality in any of your works? If so, I’d love to read.
Your closing reference to past conclusions that taxation is the fix overlooks the significant contribution inequality that accompanies the income inequality you center your narrative on.
Our tax and welfare structure traps half of Americans in government-incentivized poverty or near-poverty while the top 20% serve as the state's primary "tax crop."
Consider:
National Federal Income Tax:
- Top 1%: 40%
- Top 20%: 72%
- Top 50%: 97%
- Bottom 50%: 3%
New York State Income Tax:
- Top 1%: 46%
- Top 20%: 80%
- Top 50%: 99.8%
- Bottom 50%: 0.2%!
NYS is the highest taxed state in the US and the contribution of the bottom 50% in NYS is 93% LOWER than the national average.
Punishing success though excessive taxation has no basis in history or economics.
We must incentivize the bottom 50% to participate actively rather than remain disengaged.
Excellent piece. As economists on your show have pointed out, there are many ways to close tax loopholes on the wealthy and corporations and many ways to support labor, but NONE of our elected officials are doing anything and the U.S. is poorer for it and our trajectory is downward.