RE: Economic Growth Given Machine Intelligence

From: Philip Sutton (
Date: Wed May 12 2004 - 19:37:51 MDT


Prof. Hanson's paper is very interesting

> "Eventually, computers do most jobs. At first, complementary effects
> dominate, and human wages rise with computer productivity. But
> eventually substitution can dominate, making wages fall as fast as
> computer prices now do."

I looked at this issue from a different angle in 1979 and on and off over
later years and came to the conclusion that one possible way to solve
the problem is to introduce taxes on material resource use/
environmental damage that rise with economic growth and to use the
bulk of the revenue to subsidise wages and perhaps introduce a modest
untied income for everyone (a la Alaska I think??). This way wages
paid in the economy by employers can fall but take-home income
keeps rising as the economy keeps rising.

So there is no need for social disruption as machine intelligence
competes wages downwards and we avoid a large percentage of our
current environmental problems as well.

Cheers, Philip

Philip Sutton
Director, Strategy
Green Innovations Inc.
195 Wingrove Street
Fairfield (Melbourne) VIC 3078

Tel & fax: +61 3 9486-4799
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