Cognitive Mercantilism: AI panic resembles fears of early capitalism

(contraptions.venkateshrao.com)

60 points | by ianand 4 hours ago

28 comments

  • samrus 1 hour ago
    I think this analogy breaks down when considering that the agricultural revolution gave regular people more time to demand new things, but also more time to produce new things, and thus maintained or even increased their economic leverage

    > My inability to produce food is economically almost irrelevant. What matters is that I can consume it, enjoy it, develop tastes for it, and devote my energies to other things.

    What the author misses is that what mattered more was that people could now produce more things. People were free from manual labour to perform intellectual labour. But what do people do to produce things when intellectual labour is automated? And with emboddied AI, skilled manual labour too?

    You need to produce things to be able to reap the fruits of economic progress. Thats what most working people did after the agricultural revolution. What will we produce in a post AI world? And if only the people who own AI will be able to produce things, then why would they give us any power or leverage in the economy?

    • reasonableklout 1 hour ago
      I suspect the author would respond with some form of "displaced people without capital will take on roles in the relational economy, or as human liability for the robots." I agree the material leverage of such jobs seems radically diminished.
    • dot42 1 hour ago
      > And if only the people who own AI will be able to produce things, then why would they give us any power or leverage in the economy?

      Nailed it! It’s a too powerful resource to be privately held.

    • akanet 1 hour ago
      I think you did not read the post, or else missed its point entirely. VGR speaks directly to the induced demand of greater access to intelligence, namely, that people may redouble their efforts given that now so many more things are within reach with the aid of AI.
    • jongjong 31 minutes ago
      Surely it will also free people up to apply their intelligence (or stupidity) towards other things.

      It's concerning because there is already way too much 'intelligence' in this society and most of it is used to propagate falsehoods, irrationality and to manipulate others in counter-productive ways. I hope AI educates people and doesn't merely steer them down deeper into their echo-chambers. That said, I also really hope that AI doesn't just bring everyone into alignment and agreement about ideas which aren't true. There are significant threats with both extremes.

    • lynx97 55 minutes ago
      Well, regarding manual labour. Putting aisde the "is working with AI drying out your brain" discussion... Quite frankly, even fast touch-typists like me will never outpace an LLM write a few obvious functions... Isn't that also more or less the same thing as being freed of manual labour. How much of the thinking/design process your outsource to your LLM is a totally different discussion. See vibe-coding vs "pair" programming. But all that aside, I very much feel like LLMs are pretty much saving me a lot of manual typing.
    • logicchains 1 hour ago
      >But what do people do to produce things when intellectual labour is automated?

      They do what AI can't do, entrepreneurialism, because AI doesn't have property rights. Like back to the 1800s when most Americans were self-employed, not working for large corporations, because corporate cog-in-the-machine work can be done better by AI. With AI it's far easier to run your own business than at any time in history.

      • chrystalkey 1 hour ago
        Are you really arguing the singular benefit of being human that AI can't take away is a specific concept of law? And then say that running your business with AI is easier than ever? So if we are reduced to running our own business, and AI can do that pretty good, what do we do?
      • lioeters 1 hour ago
        > back to the 1800s when most Americans were self-employed

        They were mainly wage employees and factory workers by the end of that century due to industrialization. And "AI" is the industrialization of intellectual work.

      • chii 1 hour ago
        > far easier to run your own business than at any time in history.

        But let me play the devil's advocate and argue the point: who will the business sell to, if most people are not in a position with wealth to spare to buy from your business?

      • IndeanCondor 1 hour ago
        ... What do you believe 1800 America was like? Because it was govt backed credit sales, land grants and pre emption rights that gave the land to people. The "self employment" was subsistence agriculture on the granted land in the frontier. The land was granted by a mechanism very similar to the volkisch lebensraum.

        Clearly a relevant and replicable analogy to AI making entrepreneurship easier /s

        Your version of 1800s North America is a myth.

    • atleastoptimal 1 hour ago
      150IQ comment
  • zkmon 1 hour ago
    The analogy between farm work and intelligence work breaks down at their transition continuation, which the author missed, I believe.

    When the people were were freed from farm labour, due to farm automation, people could find another economic activity which required the other capacity of humans - intelligence.

    The transition from muscle-power work to mind-work was meaningful, as both muscle and mind were attributes of humans, creating demand for humans having mind power instead of muscle power.

    But the continuation of that transition breaks down. Muscle power -> Mind power -> ???

    Those 3 questions marks at the end are what's scaring people, and what is threatening the stability of the transition from mind work. If both muscle power and mond power are not things of value, how would the humanity progress to create value? Who buys it? Why do they buy it? Who hires whom? Why?

    • shoobiedoo 1 hour ago
      Yes, if you look at the examples the author used such as Indian cotton or tobacco as drivers of increased voluntary labor, both of those carried immediate intangible value as status symbols or bragging rights on top of their material value. It further stratified society which led to more people wanting more stuff and... on and on. What is this cognitive surplus value going to bring? I don't get it.

      I guess their point is that, for example-- instead of requiring heaps of study and a genius mind to learn to how to reverse engineer complex things over the course of years, their intelligence can go to something that... AI can't do yet?

      • zkmon 59 minutes ago
        The author declares that it is fully written by AI using a few prompts. So, not surprising that the whole article is so weak at the core.
    • aswegs8 46 minutes ago
      Will power seems to have become the new differentiator.
    • pinkgolem 1 hour ago
      I mean some argue the 3d is creativity.

      But I am sure people had the same question marks back then, for what's comes next

    • decidu0us9034 55 minutes ago
      For many here the answer seems to be that everyone will be product manager or a capitalist (one suspects the people saying this are product managers and capitalists).
  • TheWrongGuy 28 minutes ago
    A nice article by bosses for bosses that tells a nice clean story that goes to great lengths to avoid any confrontations with any part of reality that might make them uncomfortable.
  • bozdemir 1 hour ago
    People need to think about the future now, it is more urgent than before, we have to decide what to do with our life when (assuming a positive future rather than skynet) AI does the stuff better than us in every category. We have to find a meaning. I know this comment isn't directly related to the AI trades, but every subject regarding AI keeps reminding me of the future we are not ready. I can't imagine what type of professions completely made unnecessary by AI in the following 5 years.
    • logicchains 1 hour ago
      >AI does the stuff better than us in every category

      Current AI is never going to do better than us in every category, it can only do better in us in categories where it's possible to generate an infinite amount of verifiable synthetic data (math and programming). AI is still just as bad at sales, marketing, writing and anything involving human subjective appeal as it was a year ago. And it's fundamentally handicapped in being unable to acquire new domain knowledge that doesn't fit in a few hundred thousand tokens of context.

      • sgsjchs 32 minutes ago
        > AI is still just as bad at sales, marketing, writing and anything involving human subjective appeal as it was a year ago.

        All of these have objective metrics (units sold, clicks, likes, etc) and are thus verifiable in principle.

      • entropi 54 minutes ago
        > Current AI is never going to do better than us in every category, it can only do better in us in categories where it's possible to generate an infinite amount of verifiable synthetic data (math and programming).

        Even if this turns out to be true, I don't think it will necessarily matter.

        So much money was already burned, by so powerful people in incestuous relationship with governments, that I don't think this is an important point anymore.

  • numpad0 11 minutes ago
    Maybe this is just me being old and/or crazy, but I can't assume these phenomenon to be causes anymore and I can't help suspecting it might be a mere symptom. Maybe there are groups of people reverting from capitalism back into mercantilism due to diminishing and deteriorating state of production and economy, and that new old mindset is just being applied to everything, now including AI policies.
  • lampe3 29 minutes ago
    Capitalism right now and always has worked as designed a few winners a lot of people in "jobs" that are bordering on being a slave. Just that now they have technology colonialist like the Spanish or brit's or later us did not have. An error is also that colonialism has never stopped. Just because we don't have boats. You can now call it neo colonialism with trade deals from big power full states with big armies forcing smaller countries on there trade deals.
  • dot42 1 hour ago
    The problem with AI if compared to capitalism is that we start where the same players that won capitalism starts as winners and the rest of us cannot enter the race.

    AI is not a ”fair” resource. Normal people cannot compete. We can rent capacity of the ones owning the data centres. But we will never have access to the best models. Never be able to afford outbound data centres. We can at any moment lose access to the resource. And the ones controlling the resource will be in control of everything. And it will be privately held. Fantastic.

  • flufluflufluffy 37 minutes ago
    I’m gonna go eat my banana which was produced by an invisible matter producer that doesn’t require power, and think about what I could be thinking about.
  • visarga 1 hour ago
    I think the article is insightful. I want to contribute my perspective:

    1. when an AI starts working on a task, it is within a human context, someone pays and decides to assign that work to AI

    2. while it performs work on the task it continuously needs to interact with the context in order to act and observe the feedback

    3. at the end of work, the outcomes remain in context, including gains, losses, costs, risks and liability.

    So AI is great but can't do the beginning, middle and end of a task. They belong to context, which is us, the AI users. Context is maximally distributed, every human, team, or company that uses AI is a context, they are relational and indexical. You can't have my context, for example - you can't eat for me, or learn for me. Some things must loop back. Especially consequences of AI work. That is irreducible, AI can't improve to grow a skin like us. Its own skin is user base gain/loss, competition with other AI providers and dancing for investors. Every AI usage context is not theirs and they can't own it.

    What happens to companies is that their investors expect AI usage already, their competitors use it to compete with them and fast follow, and customers use AI agents to arbitrate their buying opportunities. So even if they did nothing AI related they find themselves in a new world where.

    1. anything visible can be easily imitated - code, text, media, and AI agents - I call it the fast follow effect

    2. any apparent arbitrage opportunity will be quickly crowded by fast followers removing profit from it

    3. AI it self is competitive and the whole stack is fungible - models, harnesses, tools, they can all be replaced easily, what matters more is the project context data which is usually a git backed folder on local disk

    So my theory is that AI won't make anyone "rich". Instead we have a musical chairs moment. AI removes distinctiveness from everyone of us. Every time I use AI for myself it is just great and amazing. When others use it, they make our own work seem little and not as impressive. Companies are caught in a Red Queen effect, have to work harder just to stay in place.

    And here I find the answer to what will we do with all our free time - compete, run for our own musical chair. We need to find our own niches again, they are now under rapid change. We will invest as much energy as needed to do it, we are ready to pay a lot of effort to differentiate back. But we can't predict it just as you can't predict where the ball in a football match will go 1 minute later, it depends on what every other player is doing.

    • wisty 1 hour ago
      So if I'm reading you right, the question is, is the context that matters a consumer, a government, or a business?

      If a CEO just needs to write "optimise profits" ...

      • valesco 58 minutes ago
        A CEO always just had to write “optimize profits”.

        But IMHO what humans do is turn their intentions into reality using tools.

        Intention is human, reality is perceived by humans. I feel that you need humans in the whole chain to communicate with reality (the context) and serve as translators and drivers for our tools.

        Sorry that I can’t put more precise words here, but I am somehow convinced that there is a fundamental mechanism here that limits the reach of AI.

  • eesmith 1 hour ago
    > As international trade expanded, ordinary Britons began developing tastes for goods that had previously been luxuries reserved for the wealthy. Tobacco, tea, sugar, and colorful Indian cottons were among the commodities that helped create a new consumer culture. People began wanting things that were neither necessities of subsistence nor traditional markers of aristocratic status. And they were willing to voluntarily work harder to get them.

    Well, look at that. An essay about the benefits of slave trade and colonialism, while making no mention of slave labor or oppressed people.

  • arisAlexis 12 minutes ago
    Category error in thinking of this article
  • areoform 58 minutes ago
    I think the question of our times is, "Of what use is intelligence?"

    I can give you an example from my interactions with people in the space industry.

    For the longest time, missions have had a minimum viable skill set problem. The people who become astronauts via (what will be seen as) the classical programs are chosen for their intelligence, adaptability, and resilience.

    There's a joke amongst people who've gone through the selection process to become one that the ideal astronaut candidate is an Antarctic shark doctor helicopter pilot physicist.

    They're usually subject matter experts in something, and then are given extensive training in everything else. It doesn't matter if you're not a doctor, but if you're going to be more than two days away from civilization, then you're going to learn how to do a tracheotomy for intubation. Because what if it's the doctor who is severely injured?

    As long as the crew size is below the size of a small town, there isn't much overlap in expertise, and the amount of knowhow and practical expertise you have to bring to the field is staggering.

    AI changes that calculus. You can now give outbound astronauts all of human medical literature, medical equipment, and a specially shaped model that knows the crew, their expertise, and how they did in training.

    If the crew doctor goes down, or there is a significant casaulty event, then the crew doesn't have to wait for minutes at a time to get painfully slow instructions from mission control. They can use the machine to augment their training to find creative solutions to the problem with the inventory they have on hand.

    NASA has always wanted such systems in play. It's why for the longest time NASA has been spending money on robotic surgeons. But it took these LLMs to make these kinds of missions practical. https://spinoff.nasa.gov/spinoff2000/hm1.htm https://www-robotics.jpl.nasa.gov/what-we-do/research-tasks/...

    The speed of light delay made such devices impractical... until now. Astronauts can be the hands or the robots. The machines can provide the specialized expertise. This makes the exploration of our solar system a much more feasible endeavor.

    Instead of sending 6 to 10 people, we can send 3 to 5 highly capable people (including a flight surgeon), and augment their expertise with specialized models. AI lets us carry human expertise with us to the stars.

  • worthless-trash 1 hour ago
    This proves that brother has never done farming.
  • letwhile 1 hour ago
    The british flag on the boat, as if britain would play any role in current times.
    • lampe3 33 minutes ago
      Britain as one of the most aggressive nations ever roaming this world actually fits since this is also where Manchester capitalism was born.
  • EdwardDiego 1 hour ago
    This author apparently never saw a hype train he didn't want to get on.

    Have we Unlocked Civilizational Hypercomplexity with Ethereum yet?

    Feels like another cryptocurrency to AI pivoter. But hey, credit where credit's due, dude knows how to hustle.

  • epsteingpt 1 hour ago
    Hate taking down these articles, but this is a very, very bad take. Rationalists always fall down on human behavior.

    There is a comforting fairy tale popular among tech optimists: that human history is driven by mental upgrades that trickle down to the masses.

    The first part of that sentence is absolutely true. The second part has a much darker side that optimists conveniently ignore.

    1. Mercantilism is alive and well. Please see Hormuz, Straight of. 2. Mercantilist rent-seeking is alive and well, just at a layer up of abstraction. See Google, Meta, Microsoft. No single player can compete with them. Ones that somehow manage to even threaten get bought. 3. Tech doesn't solve issues broadly: a modern worker with a battery-powered chainsaw has more productive power than an 18th-century frontier settler. Yet we still have homelessness. Riddle me this, techno-optimist.

    But you'll say, we're overall better off. Of course we are. But the gains have BY AND LARGE gone to the wealthiest individuals and countries. The idea that the dude can eat a variety of incredibly rare food sits on the backs of billions of impoverished people who don't spend time in our air conditioned offices on MacBooks.

    Great men and discoveries move the world (see Musk, Elon) but their exploits spread wealth HIGHLY unevenly, and big nation states want to steal it in the most mercantile way possible - by forcing and scaling up supply (look at China for cars, steel, and basically any advanced manufacturing right now).

    One man intelligence will be a boon for people with agency. But it's HIGHLY unlikely to undo the superstructure which captured the rules of mercantilism AND capitalism at the same time.

    • decidu0us9034 40 minutes ago
      If I'm being very cynical I think people at the AI labs suspect they're going to shrink the market for productive labor but are fine with that since they'll capture a larger share of profits, as perpetual rent-seekers for all intellectual production. They also have this hope that there will imminently be a lot less of us around (they telegraph fear of this outcome, but that feels insincere).
    • logicchains 1 hour ago
      >But the gains have BY AND LARGE gone to the wealthiest individuals and countries.

      This is simply false, the average Chinese or Indian is incredibly better off now than they were 100 or 500 years ago. In fact for the past decade many of the wealthiest countries (many Western European countries, and Japan) have seen barely any growth in living standards at all, GDP-per-capita growth has been concentrated in developing countries.

      • selcuka 1 hour ago
        It is correct. The richest 10% now earn 53% of global income. The top 10% average income/bottom 50% average income ratio has went from 18x to 38x in the last 200 years.
        • cadamsdotcom 25 minutes ago
          Ratios gonna ratio.

          It's not mutually exclusive with enormous relative improvement at the bottom, from where people were to where they are now. China and India have all but ended open defecation and there's running water in places we'd never dream of a generation ago. Diseases are being eradicated saving huge numbers of lives.

          Rich got richer contains zero information about how poor people fared - even accounting for relative numbers in your claim.

  • TheWrongGuy 32 minutes ago
    goo goo ga ga
  • lelanthran 1 hour ago
    The TLDR take: now that humans are no longer required for thinking, we will switch to something other than usage of our brains.

    Eating, apparently, is completely optional for humans :-/

    Just a thing to remember: our intelligence made us the apex predator on this planet. Is there any reason to believe that a superior intelligence, whether man-made or extraterrestrial, won't become the apex predator?

    • asgraham 1 hour ago
      That’s not really what it’s saying. The analogy it draws is between subsistence farmers and subsistence thinkers aka white collar workers/paper pushers etc. The argument would be that repetitive, brainless thinking will no longer be required (not thinking in general), so people will be freed up for currently unimaginable cognitive pursuits.
      • lelanthran 42 minutes ago
        > The argument would be that repetitive, brainless thinking will no longer be required (not thinking in general), so people will be freed up for currently unimaginable cognitive pursuits.

        That's a facile, superficial "argument" that is currently being made by everyone who is pro-AI when confronted with any claim of AI pushing humans out of the economy.

        At this point in time, it's reasonable to dismiss the argument rather than engaging it, because each time this argument is made the proponent of the argument is completely mute on the fact that humans work to eat.

        That's a big underlying counterargument, and no one making the argument is engaging with the counter-argument, they are instead setting up strawman counter-arguments.

      • 10111001 1 hour ago
        > The argument would be that repetitive, brainless thinking will no longer be required, so people will be freed up for currently unimaginable cognitive pursuits.

        Like what?

        1. AI isn't going to stop at "repetitive, brainless thinking," just ask the math professors.

        2. Even if that's true, is everyone capable of these "currently unimaginable cognitive pursuits"? Oh, there will still be cognitive work for the top-0.1% smartest people is little consolation to the other 99.9%.

        3. That argument is basically trying to console people with a combination of "trust us" and the underpants gnome business plan ("1. Collect underpants, 2. ?, 3. Profit).

  • raised_by_foxes 1 hour ago
    Thankfully capitalism didn't have any negative consequences.
  • jrflowers 24 minutes ago
    > Now replace wealth with intelligence, and mercantilism with cognitive mercantilism

    I love when it’s clear somebody wrote “Write an intelligent blog post that sounds smart. Reference this book and AI. Make no mistakes.” to a chat bot

  • ooli75 1 hour ago
    we can draw another parallel like this simpleton of an "author":

    let's say smartphone. They are so smart! we can replace all the word intelligence in his thesis by smartness.

    This dude think because some marketing team put the word "Intelligence" on LLM , it is it.

    Since a LLM wrote most of the words in this "essay"... which is just word salad, replacing "capitalism" by "AI" in the work of someone else ( a "clever" LLM trick , who like taking something existing, and replace one word at the time); since the lack of any insight in this article, we can conclude, that the LLM who help wrote it, has clearly no ressemblance with any intelligence.

  • nickphx 1 hour ago
    the clowns selling the non-deterministic black box of bullshit are relentless in their touting of benefits while failing to demonstrate actual usefulness.
  • ifaigudgiveusti 45 minutes ago
    Yet another "disgusting ludites" post NOT advocating for the 6 hour work day despite espousing all the arguments in favor a 6 hour work day.

    Coward.

  • keybored 1 hour ago
    > Capitalism emerged when people began discovering that wealth could be created rather than merely captured, and that ordinary people could be sources of demand and initiative rather than merely labor to be commanded as a factor of production.

    A worker under capitalism is exactly just another commodity commanded by capital. Only competing power centers like unions makes it not one-sided.

    I dunno about “demand and initiative”. Is this how capitalism started, or are we jumping ahead to the post-WWII USA where the socialists and capitalists had won concessions from the bougies so that a “middle class” came about?

    > The early capitalist worker voluntarily increased annual working days from 250 to 300 because a new universe of desirable goods had become accessible.

    The weekly working hours increased for many who moved to the factories of the cities. Labor organizing is what lead to the two-day weekend.

    > We are moving toward a world in which an ordinary person can command quantities and varieties of intelligence that would previously have required teams of highly trained specialists. Just as I can enjoy food without knowing how to farm, I can increasingly enjoy the products of intelligence without knowing how to produce them myself.

    Some people are incapable of seeing power dynamics. An ordinary person might fear AI because of the explicit threats against his or her job.

    How does power work? In this case it works by concentrating compute and access to the vaunted frontier models.

    Another thing is the part about “hoarding”. AI is exactly about hoarding. Labor built the intelligence of centuries. Now AI wants to close that off.

    • EdwardDiego 1 hour ago
      > Labor organizing is what lead to the two-day weekend.

      And the 8 hour work day. And, for miners, being able to have their lunch break above ground.

    • Daz912 1 hour ago
      [dead]
  • slopinthebag 1 hour ago
    ai panic is dumb, because just like "capitalism" it didn't replace the value of human input, only relocated it.

    i'm happy to hear arguments from the misanthropes why for the first time in history this will not be the case.

    • EdwardDiego 1 hour ago
      You seem to be mistaken, the misanthropes are the owners of capital who want to leverage AI to get rid of pesky thinking meat.
  • Daz912 1 hour ago
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