The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
In my country, we could do so by enforcing laws that are already on the books that exist for this exact purpose. You start with the Sherman Antitrust act and break up any company with more than X% market share in any market they operate in. You enforce the Glass-Steagall and Frank-Dodd acts forbidding conventional banks from investing in speculative markets, and then sit back and watch the economy work like it does in the textbooks.
Of course, all this is predicated on the government functioning. If it does not, the laws are irrelevant and the markets are just lawless warzones with non-corporate entities (like individual humans) acting as the blades of grass underfoot. So, step 1 is to restore the government to the point where the will of the governed is acted upon. Step 2 is the stuff I said above.
Ok, how do we organize that in an equitable manner?
Isn’t that more-or-less what a government is supposed to be?
In my country, we could do so by enforcing laws that are already on the books that exist for this exact purpose. You start with the Sherman Antitrust act and break up any company with more than X% market share in any market they operate in. You enforce the Glass-Steagall and Frank-Dodd acts forbidding conventional banks from investing in speculative markets, and then sit back and watch the economy work like it does in the textbooks.
Of course, all this is predicated on the government functioning. If it does not, the laws are irrelevant and the markets are just lawless warzones with non-corporate entities (like individual humans) acting as the blades of grass underfoot. So, step 1 is to restore the government to the point where the will of the governed is acted upon. Step 2 is the stuff I said above.