The Second Great Divergence: The Effects of General Artificial Intelligence on Economic growth, Employment, and Income Distribution

Abstract

I discuss how the emergence of artificial general intelligence (AGI) affects economic growth, employment, and income distribution. If AGI substitutes perfectly for human labor, the AK-type economy will occur. In the economy, the rate of economic growth gets higher over the years, the employment rate and the labor share approach 0%, and the capital share approaches 100%. I propose that basic income can contribute to the well-being of the laborer who have no capital.