How Much Redistribution Will AI Require?

How much redistribution will AI require? A common scenario is that AI raises output enormously, but labor’s share of income collapses. GDP per capita goes up but workers get poorer, and making workers whole requires massive redistribution. In my latest paper, I run the numbers and conclude that this is probably incorrect. The idea is simple. Labor income is GDP multiplied by labor’s share of GDP. What matters is the product. A smaller share of a much larger economy can still mean more income for...