"The transition to a world of artificial intelligence has given a whole new meaning to the concept that capitalism can only renew itself through creative destruction. This is the idea that clapped-out technologies have to be replaced by new ways of doing things, even though the process can be brutal."
"Only by doing so can the full potential of technological progress be realised. It also helps if economies are growing and jobs are plentiful, as was the case in the 1950s and 1960s."
"The closure of the strait of Hormuz has led to higher energy prices and shortages of raw materials for use in industry and agriculture. A sharp rise in business costs coupled with the ready availability of new labour-saving technology is a toxic mix that has the potential to destroy jobs rapidly and on a grand scale."
"The International Monetary Fund this week cut its growth forecasts and highlighted the risks of a global recession, and if the warnings prove correct, the incentive to choose machines over humans will increase."
The transition to artificial intelligence signifies a new era of creative destruction in capitalism, where outdated technologies must be replaced. Machines with cognitive skills increase the potential for economic disruption. Policymakers ideally need time to adjust, allowing for smoother transitions and investment in skills. However, current weak growth and job scarcity complicate this process. The ongoing conflict in the Middle East exacerbates issues, leading to higher energy prices and raw material shortages, which, combined with new labor-saving technologies, threaten to rapidly eliminate jobs.
Read at www.theguardian.com
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