Tech Tycoons have actually Got the Economics of AI Wrong

Even as financial growth was simply removing, some economists were currently cynical. Coal, composed William Stanley Jevons in 1865, is « the mainspring of modern-day product civilisation ». Yet it was limited and would quickly run out. Although more might be found by digging deeper, it would be increasingly expensive to extract and these higher costs would lower the competitiveness of Britain’s producers. After all, in other nations the black fuel was still in sight of daytime. Efficiency gains-using less coal to produce the very same quantity of stuff-would not save the country. Indeed, cleverer use of minimal resources would just supply a reward to burn much more coal, which would, paradoxically, cause an even faster use of British reserves. There was no escape, the Victorian economic expert believed. Coal would be tired and the country was likely to « agreement to her former littleness ».

Explore more

This short article appeared in the Finance & economics area of the print edition under the heading « Rocked by DeepSeek »

Finance & economics February 1st 2025

Donald Trump’s economic warfare has a new front

Will America’s crypto craze end in catastrophe?

Don’t let Donald Trump see our Big Mac index

Giorgia Meloni has grand banking ambitions

Can Germany’s economy phase an unanticipated recovery?

Why your portfolio is less varied than you may think

Tech magnates have actually got the economics of AI incorrect

From the February 1st 2025 edition

Discover stories from this area and more in the list of contents

More from Finance & economics

Why your portfolio is less diversified than you may believe

The most essential idea in modern finance has become maddeningly hard to carry out

Can Germany’s economy stage an unanticipated healing?

The scenario is dire, but there are glimmers of hope

Giorgia Meloni has grand banking aspirations

Will Italy’s nationalist prime minister handle to concentrate monetary power?

Donald Trump’s economic warfare has a front

The president has actually threatened to explode the international tax system. Will allies be able to stop him?