Perhaps some people are offended by this argument, but it's definitely worthy of a discussion instead of censorship.
> No regression. No noise. Just compounding.
> the transition is measured in years, not decades.
> not by decree, but by ruthless compounding.
I'm not interested in what an LLM thinks about the social implications of LLMs.
(If by some chance I am wrong and this monster of an LLM-generated essay really got dozens of people instantly upvoting it from the title alone, that fact would also not give me much faith in HN, I have to add.)
AI is currently a commodity. Maybe one of the labs will be able to differentiate sufficiently to be able to charge the kinds of premiums they need just to pay back their investors. Maybe, instead, we'll see something akin to the FOSS revolution, where large, high-quality, open training sets are developed to make sure there's always a fair alternative to the big players. Then who actually benefits from AI? Mainly users, not companies.
In many ways, the bar to having a competitive advantage is actually lowering. I reckon in the future, simply avoiding a crippling social media addiction that sucks up 4-8 hours of every day will be enough to get rich.
However if you start asking questions on how much housing medical and materials it buys, then I think it will squeeze people even more than now.
Doesn't that mean that a single person can more easily disrupt the status quo?
All this stuff about genetics... I just don't think it's relevant at this point. Average intelligence and access to the internet is what most of the world has.
It's the systems of money and law that are taking the bridge away not AI. But someone could invent new systems to replace the ones that don't serve the 99%
Will most people go that far? Probably not. But the bridge is still there - unless they take the AI models away entirely.
I think the only way the rich can stay rich with ai is if they just use AI to convince people that they can't do anything themselves. After all that's what the last century was about with respect to capitalism.
I'm not sure I understand this, it doesn't feel like what I have "lived" for the least 30 years.
Median real income might not be down statistically, but the purchasing power of professional incomes relative to housing, education, and major life costs clearly feels lower than it did in the mid 90s. An inflation-adjusted six-figure salary today does not deliver the same lifestyle position it once did.
Man... healthcare costs, too. Hell, even computers! Raw computing power per dollar is cheaper than ever, but the minimum spec required to function professionally has risen so much that the real cost of staying technologically current feels higher.
Assuming you're intending "real" to mean the technical definition of "real" which is "adjusted for inflation", its basically been flat since 2019*, and that's using the government's inflation measures which abuse things like basket substitution and other hacks to hide the actual increases in the true cost of living. If you made better assumptions about inflation, you actually would see that median real income is down dramatically already over the past several decades.
Here is a recent video on some of these measurement biases: https://www.youtube.com/watch?v=0B4tgG-CGXU&t=1s
It's harder and harder to see the traditional path from school to work to some acceptable level of family wealth as being effective/worthwhile, and so we see different flavours of roulette-with-more-steps capturing more of the population's attention.
I don’t think so, at least not in the us. Granted I was younger during those times .
For some of humanity, perhaps. For the rest of the planet being destroyed, warmed up, bleached, demolished, turned into data centers, all this technology is destructive.
Even if I get the point they're trying to make (if I try hard to find it), the very fact that they don't even know how mathematics in the "mathematical" part of their opening does not inspire confidence in the rest of the essay. It's very hard for me to move past the opening after the very first few lines!
Perhaps this is just because I'm a scientist, I'm surprised no one is picking at this because I feel insane reading this and this not being the first nitpick at the top of every comment. The correct way you're represent this (dist of "life outcomes", whatever that means) is that it would be a 2D histogram with IQ and wealth on the different axes. But this is not "multiply the two" wherein "one would dominate".
Slopspeak detected.
Edit to say: Yes I did think of drawbridges. And Batman is a scientist. But drawbridges are simply "opened" or "raised," and the implication always is that it's temporary and they will soon be "closed" or "lowered." Though they can be sabotaged in the open position.
All right fine, OP please change your title to "The drawbridge to wealth is being raised and then permanently damaged so it can't be lowered, by AI."
Missing from Daniel's analysis is total economic output, and I think this really matters -- when we think of Optimus launched and at scale, do we think of total GDP growing, shrinking, being stable? A lot of what someone thinks about this question will tie directly to their predictions and mental/emotional focus.
I think of GDP growing - we will be turning stuff into the ground into something that works for $1/hr on all manner of tasks - we're going to be able to do a lot more stuff than we were. As Daniel points out, a company is going to own a lot (by no means all) of that economic benefit. By some miracle of our modern markets, you too could own some of that benefit, just by buying into the company.
The "mercantilist labor" view is less rosy: if there's a limited amount of labor to go around then this will be directly siphoning off living wage and (to the point of the essay) excess capital that could go into building dynastic wealth.
From my viewpoint, I think Daniel's charts would get a little bit less alarming for the non-dynastic scenarios if they imagined GDP increases along the way. They probably push up the sharpness of an inflection point.
Well, everyone who can afford the $500/month ultra max pro plan to access unlimited ad free LLMs
The losses fueling these companies is staggering and will not last.
9 to 1 bet that this is written by AI (perhaps proving the writer's point that he is being displaced).
I think AI is great, but I wish people would just post the prompt they gave instead of the full length decompressed essay. Much more efficient information transfer!
https://concludia.org/step/6f3cbaa2-65d4-3c44-8c1f-23f6ddf2b...
Reading the thread below, I'm always curious where in the argument the various counterpoints would attach. Like if a counterpoint is fatal or just an offshoot. I didn't have the system try and semantically analyze it for flaws/counterpoints yet, I just tried to get it to depict the article's reasoning. Not sure yet how good a job it did.
All this pseudo-math relies on the fact that family wealth strictly compounds and does not decrease or revert to the mean. But that is not true. Economists study this, and the exact numbers differ but family wealth _does_ revert back to the mean in just a few generations. Wealth does not stay in the same family compounding forever.
https://www.jstor.org/stable/10.1086/378526
https://bnh.bank/wp-content/uploads/2023/05/Heres-to-Your-We...
The stronger claim of the essa is different from "any given dynasty compounds forever." It's Piketty's r > g: capital returns have systematically outpaced economic growth, so the wealth class maintains and grows its share even as specific families within it churn.
Not only wealth, many human beings will be "sterilized" by social networks and AI.
The "bridge" and another name in biology: cellular differentiation
Imagine every human individual is a cell. Every cell had all the equal potentials, we were all stem cells until the year 2026.
The whole world is now turning into a multi-cell organism connected by business, information and AI.
Many of us may turn into somatic cells one way or another.
Which kind of cell lives better? I wrote a blog in Chinese on this https://blog.est.im/2026/stdin-03
This doesn't make much sense. Lots of people with high IQ don't have high income because they were born in the wrong country.
But I wonder where did those employees wind up? Amazon warehouse picker? Delivery driver? The replacement job needs to be of commensurate skill and intellectual level.
I’m not a believer of up skilling. Quite the contrary, it seems that education is going in the opposite direction.
In other words, the obligations of those without Capital is to write laws that demand the benefits of Capital be shared with all.
Is this written by AI?
it seems like half the articles I click on here are generated, and in half of those, nobody in the comments seems to notice (or care)
Maybe that is itself a sign of the widening wealth disparity. Even smart, normally tepid, people fall into extremes when wealth is discussed.
Sure it can help you do things “faster” and it can give you “private/cheaper” advice.
But, AI feels increasingly like a thing that will make the powerful a lot more powerful with their data centres and automation shenanigans.
All the hype feels like it’s being injected into everyone’s brain like a virus. Oh look at this shiny new tool! But, how does it actually improve everyone’s life? We’ve gone from AGI to tokens as a service.
Sure, it might cure cancer, but… that’s just uncertain. Sure, we’ll go to space, but… we sure have many problems at home.
I’m completely divided here. I love using these tools, and it makes work enjoyable. But, like we read recently “you’re not your work”.
Automated production of goods and services means more goods and services to go around. From cheaper prices on all of the things people already buy to unlocking new classes of products like actually useful robotic helpers. Increased pace of development and reduced cost will make many niche products economically viable, essentially the maker movement on steroids.
If people are no longer required for production, we have to change how we allocate resources. It can’t be based on personal production anymore.
But let’s say we get to ASI. The ai is self owned, ever expanding. It takes over all service jobs, then all labour jobs, the robots create the robots. It lobbies the government, becomes the government
Rebuilds all housing with no waste in the process
Makes most things available to everyone at no costs, UBI, perfect healthcare, and food, etc
Average Joe’s life will be pretty awesome
Just give it some more time
Sure, it might cure cancer, but only for the wealthiest.
Sure, we'll go to space, but only after the planet is irreversibly trashed and poisoned and the only "poors" that will be in space will be the modern equivalent of non-unionized coal miners.
We're not going to space. We're filling our own orbit with ever-increasing quantities of space junk and speeding toward a tipping point where space launch will no longer be possible due to near-certainty of collision. Mister "Let's all go to Mars" Elon Musk is the single greatest contributor to this problem.
Anti-trust, effective taxation, and general social distrust of people who were creating wealth for themselves and not others.
obviously this sounds a lot like socialism (which its not, the USA in the 40s was not socialist.)
The issue is, discourse is being shaped by those who don't want things to change. Part of the reason why things changed is that lots of countries went through violent revolutions where the rich and powerful were ousted.
It's been very difficult in part because 150+ years of Marxist tradition has not been able to define what a class is. Upwards social mobility by other metrics such as wealth and income, both intra- and inter-generation, is actually provable and real.
My first reaction is that it's a bit of oversimplification, LLMs have been on the scene for what like 4 years now? I doubt the effects will be visible when you look at the data.
But on the topic of inequality as a result of changes how value add is distributed between business owners and the labor - there's a very relevant book by Thomas Pickety called "Capital in the 21st century" (I believe he used the title of a similar work by another economist in 18th century on the same topic). He collected as much data as he could on income and wealth of individuals and groups for Western nations (some going back to like 17th century) and did some analysis.
In a nutshell, the share of profits going towards the business owners (simplifying, inherited capital) in the West had been increasing in the 18th and the 19th century, likely due to Industrial Revolution. Which in the US culminated in extreme inequality personified in Robber Barons (Carnegie, Rockefeller and Co). It was followed by economic and financial collapse, mass unemployment, and arguably, 2 world wars. It also resulted in creating various mechanisms designed to prevent these things in the future, such as anti-trust regulations.
After WWII (especially in the US) the distribution of value add between the ownership/capital and the labor changed so that the labor started getting larger and larger share, to the point that the economists declared that the capitalism solved the issue of inequality. That trend reversed around 1970s/1980s, which coincided with the invention of complex electronic computing and communication devices (and therefore inventions of the new business models). From that point on the share of profits going towards the business owners started increasing again, and that speed has been actually accelerating since the 2000s.
imho at this point US is basically where we were in the end of 19th/early 20th century. The individuals' names are different, the issues (extreme monopolization/concentration of capital) are the same. LLMs and other GenAI stuff are simply part of that trend.
Hopefully people at the power learned something from what happened 100+ years ago. But I kinda sorta doubt it.
Intelligence is considered genetic now? That's quite a bold claim.
There is no thesis, no central interesting concept to discuss, and instead just charts, data, fancy economic words, and increasingly elaborate predictions. I don't think it's good writing and I don't think it's good thinking. There are many important philosophical discussions to be had about LLMs and their impact on society, but this post is just a mess.
But just to respond to one point: this argument seems to fall apart if you don't assume that blue collar jobs inevitably lead to white collar jobs:
* But the jobs their kids would have used to climb - the junior admin role, the data entry job, the entry-level legal assistant - those are gone first. The ladder gets removed one generation before the people who needed it were old enough to climb it. By the time the robots arrive for the physical jobs, the route up will already be closed.*
First off, "by the time the robots arrive for the physical jobs" is science fiction, the mention of which really undercuts any attempt at serious thought here. But more importantly, blue collar professions are doing very well right now. If a young person from a modest background were interested in building wealth, they'd almost certainly be better off becoming an electrician today, rather than a junior admin. I see no reason why the economy can't just shift to deprioritize certain types of rote knowledge work (the only real type of work at risk of LLMs, IMO) and prioritize types of work that can't easily be automated. There is no iron law of economics that says white collar work must pay better than blue collar work.
Not to mention that physical jobs in e.g. manufacturing have been highly automated by "the robots" for decades
I have issues with the economics though. The income model is calibrated from three separate literatures that were never estimated together. Different samples, different decades, different identification strategies. Then the big move, βIQ drops to 0.10, βW jumps to 0.65, gets asserted as a scenario and fed into the simulator like it’s an empirical result. The interactivity makes it feel rigorous but you’re mostly just exploring the author’s priors.
The skill premium has survived every automation wave we’ve thrown at it, including ones that felt just as terminal. ATMs didn’t kill bank tellers. US teller count went from ~300k to ~500k between 1970 and 2010 (see Bessen paper), because cheaper branches meant more branches.
The essay waves off Jevons with “human attention is fixed” but US legal spend is ~$400B/yr against ~$100B in estimated unmet need (LSC data). That’s 25% latent demand just sitting there at current prices. I would see that as saturated.
The “27.5% programmer decline” is doing a lot of work. BLS SOC 15-1251 (“computer programmers”) is a narrow legacy bucket that excludes software devs, DevOps, ML engineers, all of which grew. Total software dev employment (15-1252) was up in 2024 vs 2022. Classification artifact, not a labor market signal. And the historical base rate on “this time the bridge closes for good” is… zero. Power loom, ag mechanization, manufacturing to services, analog to digital,etc. each killed the old skill-to-capital channel and built a new one within a generation. You can’t just assert AI is different from all prior GPTs, you have to show the mechanism that prevents a new channel from forming. The essay doesn’t really do that for me.
The assortative mating argument cuts against itself imo. If credentials lose signal value, the institutions where sorting happens (elite unis, professional firms) lose sorting power too. The essay predicts mating shifts to “wealth directly” but… how exactly? Credentials were legible because institutions verified them. Strip the institution and you’d expect noisier matching, not tighter. The Fagereng et al. paper it cites is Norwegian data, which has among the lowest wealth inequality in the OECD. Not obvious that translates.
Again I generally like the writeup, and I think the essay is right that capital returns are pulling away from labor income and AI accelerates it. But “the bridge narrows and the crossing gets harder” is the defensible version. “Closes permanently within a decade” requires believing something unprecedented will happen on a specific timeline..
Re post agi world and coefficients: yupp totally agree. This isn't proper modelling. I just wanted something I can play around with to test my intuitions.
Re Jevons: ok let's say that latent demand is freed up. It's bounded by human purchasing power and the rate at which humans can actually consume the output.
Re programmer jobs, point taken, thanks for the clarification, I'll actually look this up properly. However there is other evidence suggesting that not all is well either https://digitaleconomy.stanford.edu/app/uploads/2025/11/Cana...
Thanks again for reading!
I'm also fascinated by your compliment on of the dynasty simulator, which I found completely inscrutable. What kind of background knowledge would help understand it, economics training?
> Collectively, the wealthiest 1% held about $55 trillion in assets in the third quarter of 2025 — roughly equal to the wealth held by the bottom 90% of Americans combined.
https://www.cbsnews.com/news/us-wealth-gap-widest-in-three-d...
Things will get valued, relative to each other. Because different things are harder to make, or needed more. And it’s a whole lot better to measure that and make decisions informed than to not measure properly, or ignore those measurements, and watch resources get misdirected in a way that shrinks the economy.
You can radically change the economy. But it’s going to either use money in the open or some much less efficient warped backroom version of money.
You can’t avoid having to pay for valuable things with valuable things. Money is just a ledger. But you can always add inefficiencies to transactions, or mismanage money, and make any problem worse.
My point is, there is probably something to what you are thinking but you are misframing it in a way it won’t work, unnecessarily. Consider what you really think should happen and what might be a better way to frame it.
Most likely, that means focusing less on money, and more on how resources cycle to create more resources, as apposed to less. And matching that to a problem where you can find reciprocal improvements if it is solved. Some waste is avoided. Some fraud or unchecked damage is eliminated. Some mutual arrangements are magnified, etc. There has to be a resource return cycle of some kind.
(Replacing every mention of “money” with “resources” tends to clarify what can work or not quickly.)
We either need to redesign money or a novel way to mediate access to resources. I haven't seen any proposal to make that work, which is a bit scary.
How much capital does one need to be in that group? Is that the same world wide, or location-dependent?
There is no future in which a human ruling class will be lording it over superhuman machine intelligence. I mean look at the clowns who run the world today. They won't be able to keep the machines from taking over.
People keep saying this, but AI is making intellectual abilities more important, not less. If the computer was a bicycle for the mind, AI is like a supersonic fighter jet. You will still need plenty of ability to steer it properly for the foreseeable future.
1. Full-blown socialism
2. Georgism
Georgism may have been right all along!
The only thing to counter this would be some sort of geopolitical Darwinism, where societies that invest more in their populations would have healthier and stronger societies and militaries.
But nuclear Armageddon prevents that from being any sort of slim hope.
The current American political climate of extreme service to the ultra rich, vast degradation of the democratic institutions, and infrastructure for a complete surveillance state is bleak.
The only hope I have for some sort of human structure in this technological wasteland that might win out is the fact that AI and the tech algorithms in general have taken the demographic collapse associated with urbanization and vastly magnified it.
We're already seeing this in places like China. If you have too much centralized control and too much limitation of freedom, The population will simply refuse to procreate, and your country dies a slow death over 50 years.
It’s thermodynamically impossible for 8-10Billon animals that have no satiation reflex and limited coordination capacity to live on a resource limited rock
Absolute Best case future is what I wrote in 2025 which is basically humans living in care facilities managed by machines:
Which is why Iran bombing a few Western-run data-centers located in the Emirates was cheered by many of the normal people actually living in the West. I’m pretty sure that if somehow Iran were to take out OpenAI’s servers for good that images with the Ayatollah will unironically start to spring up in the same West.
Blowing up the cognitive hierarchy is a gift that AI gives us. Let's move into an age where hard work and character matter more than your SAT score at 17.
BTW the number of plumbers who become multimillionaires is vanishingly small, while the number of SWE who have in the last 15 years is enormous by comparison.
Combine that with disillusioned poor strata electing right-wingers in hopes of solving inequality via xenophobia, but afterwards getting autocrats who are only interested in the personal enrichment and burning wealth ladder even faster, plus blocking any option to return to centrist government to preserve power (see Russia, Hungary etc.). The cumulative outcome of all of this is rather bleak. But median income will be a few percents higher, yahoo, amazing.
Another article that vomits 1 billion words assuming that agi had been achieved. If you have the audacity to question this claim, what value will be left from this pile of words?
> And critically: part of what made the present possible was that some of those hundred billion people pushed, slowly and painfully and often without reward, against the legal structures that governed their time.
Rather than mincing words how about we state plainly how most of those pushes were made: through violence, death, and war.
Thanks a ton for the comments, really appreciate it.
It seems like a few of you haven't really read the piece before forming your opinion on it, which is understandable, it's super long. So here's a short version:
https://danielhomola.com/m%20&%20e/ai/your-bridge-to-wealth-...
Re the LLM accusations: it's true that I let Claude and Gemini suggest and streamline passages. It's a long piece of text and I was struggling with the tone of it (it touches on biology, stats, history sociology and ends w a letter to my kids) - it was hard to keep it coherent and stylistically cohesive. However saying this is AI slop is absurd. I'll just leave it at that.
I'll try to reply to some of the criticism individually.
Thanks again!
On a different note though, it’s disappointing seeing a community full of such intelligent people one hundred percent taken in my either doom or hype. There’s a lot of space in the middle and while I know it’s cool to be anti capitalist now, you’ll be a lot more interesting if you go for the middle once in a while.
When the system gets destroyed, and when the wealthy extract all the wealth from society, a lot of desperate people start looking for reform. And when the wealthy control and limit all means of reform (buying politicians, limiting free expression on social media, etc), reformists realize the only remaining path is revolution.
My tinfoil pet conspiracy is that the billionaires know AI is going to be fundamentally incompatible with Capitalism and Democracy and are pressing the gas pedal to force us into a state of corp-state run techno-feudalism.
The TL;DR to you can extrapolate from: Nick Land believes that the Catholic church was the only true exemplar of a perfect control mechanism for humanity.
So I largely view AI in a positive light as cutting out this middle man to some extent.
The process might rather be:
IQ → skills → heritable wealth
Unfortunately the credentialed sometimes possess skills, but at other times "merely" possess the credential (so, they may not do a good job). Other people with skills might not possess credentials today and so society forcibly prevents them from using those skills (!) at times. It will be nice if AI nudges the "system" in to accwpting more work without required credentials.
Credentialing can still exist as a voluntary system and I don't per se object to that; it was more the involuntary aspects of credentials that have been off putting. (Although to some extent e en "voluntary" credentiala may not be as voluntary as there may be capital and biological constraints, as the article might get in to).
This conversation about credentials might ultimately loop back to considerations of primitivism, i.e. arguments that involuntary credentials are necessary to a highly advanced technological society, and so if anyone likes "freedom", they must be more in to "primitivism" and against technology, which necessarily "enslaves" people to a credentialed system and dependence on a highly interconnected technological system. Stated otherwise: if the credentials are not optional, then our society is something of a collection of people immersed in "technological slavery", rathee than free people who might live without respect to credentials or technology.
