Some simple economics of AI?
Original Report
AI lowers the cost of building businesses. But it raises the bar for sustaining advantage. More companies can start. Fewer can dominate. That implies greater dispersion. More volatility. Less...
AI lowers the cost of building businesses. But it raises the bar for sustaining advantage. More companies can start. Fewer can dominate. That implies greater dispersion. More volatility. Less structural concentration. A market that rewards adaptability rather than mere size. And it raises the question that follows logically from duration compression: if software moats erode […] The post Some simple economics of AI? appeared first on Marginal REVOLUTION.
Glass House Analysis
Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.
The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.
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