Comparative advantage is one of the most misunderstood principles in economics, and AI has made the confusion worse. Most people think it means comparing yourself to others, but the real logic is internal: you should focus on the task where your own opportunity cost is lowest.
This post follows that insight through the hardest question AI raises, what happens when a machine beats the weaker worker at everything, and arrives at conclusions that neither the doomers nor the optimists want to hear.
This post follows that insight through the hardest question AI raises, what happens when a machine beats the weaker worker at everything, and arrives at conclusions that neither the doomers nor the optimists want to hear.
