Artificial Intelligence will FORCE Monthly Stimulus Checks.

is AI going to ruin employment is

everybody just going to lose their jobs

and we're gonna have to get Universal

basic income well yes potentially on

needing to get stimulus we're actually

going to talk specifically about that in

this video because Deutsche Bank just

put together a piece on artificial

intelligence and uh listen to one of the

hand-hand this is a part of what we're

going to talk about towards the end of

the video where we talk more about

stimulus but listen to this phrase here

ready for this

in today's

society the tolerance for dramatic

changes to people's employment prospects

is low

so if the impact of AI is going to be

transformative then we could expect new

laws regulation and there it is folks

there it is stimulus

in the near term the financial support

to reduce the near-term impact now we're

going to talk about this near-term

income and stimulus towards the end

because some people are going to go how

the he double hockey sticks Kevin

how the h a double hockey sticks are we

ever remotely going to go back to

stimulus with these levels of debt

and I'm actually going to show you

how exactly we might be able to so first

though we need to understand is AI going

to ruin all of our jobs and take away

all of our opportunities and is it time

to destroy Ai and anybody who pitches AI

including you Kevin I see that course

featuring AI

well let's read the Deutsche Bank piece

at least the highlights of it so here we

go given how rapidly the use of AI could

spread it is true that there could be

short-term dislocations in the labor

market to date though the fears about

technology leading to less work have

been unfounded over the long term since

new technologies don't just substitute

labor but they actually tend to

complement it if anything the biggest

risk of innovation tends to be quote

failing to embrace new technologies in

other words if you're and In fairness a

lot of people are like this but if

you're like a lot of people right now

and you're like hey I sh may I it ain't

doing my job right now I I don't need to

learn about that that is historically a

big mistake so

maybe somebody can like help you out you

know maybe there's somebody who can

catch you up to speed in the link down

below anyway okay so continuing on here

since centuries prior to the Industrial

Revolution demonstrate stagnant

productivity meant that living standards

changed little now I want to explain

that that's very interesting but first

there's a really fascinating line right

he where is it somewhere in here I'm

just going to jump to it because it's a

really fascinating line before we get

into some of these items here

in this Deutsche Bank piece what they

say is just 150 years ago

almost all of society

had one purpose and I want you to think

about this for a moment because it's

more impactful so if you're just like

passively listening you're like just

tell me Kevin stop for a second and

seriously ask yourself what did most

people do 150 years ago what was the one

goal people had 150 years ago you ready

for it

get food on the table that's it 150

years ago the vast majority of society

existed literally to farm food and put

that crap on the table while you're

wearing some burlap clothing like you're

in Rust and not running around naked

that was life 150 years ago

and it's scary that 150 years ago

everybody's working Farms where today

the size of our agricultural Workforce

is like

zero relative to what everybody else

does I mean the amount of farmers

watching this video was probably

somewhere like one percent so if you're

a farmer you're the one percent

so that's very interesting because it

shows you okay that's a good point we

have had technology it has created a lot

of new jobs over the last 150 years

we're not all grain Farmers anymore okay

so what has history looked like

well these are fascinating so in 1589

Queen Elizabeth refused to Grant the

inventor of a mechanical knitting

machine a patent

because it would put manual Knitters out

of work was the fear

famously in the 19th century and I've

regularly referred to this line in uh on

on this YouTube channel uh the luddites

or the phrase the luddites and

specifically I like to call people

luddites who just don't adapt like when

I hear people are still storing stuff in

paper files and binders I'm like Luddite

why are you not why are you still doing

that I mean unless you're like in the

CIA or something like that it's like oh

it buried a bit of cloud or I don't I

don't know it just seems wild you're a

lot I'm just not adapting with the times

but anyway most famously in the early

19th century a group of English textile

workers called luddites destroyed

Machinery in part because of fears that

would take away their jobs to this day

the term Luddite is still used to those

who are resistant to new approaches of

working exactly

but that's one of the most frustrating

things when you're running a company is

when you're trying to hire people and

then you hire people or just completely

resistant to doing things

the more Modern Way

anyway you're better off training

somebody who doesn't know what they're

doing how to do it better

anyway

in 1862 you had Union people form a

union because grain elevators basically

pissed off listen to this job you ready

for this job shovelers in New York City

yes a shoveler was a job and the

shovelers would quote denounce the

owners of elevators as capitalists and

speculators who were robbing the honest

Laborer of his do okay AOC of 1862 what

actually ended up coming as a result of

all of The Innovation and all of this

nonsensical fear of stuff like in the

1940 U.S senator Joseph o Mahoney

proposing a robot tax that machines

should be taxed in the proportion of the

number of jobs they take away from

humans or the Time Magazine story of

1961 saying that basically new

Industries yeah in the past helped hire

more people but not anymore today now

now we're really going to start losing

jobs

all of it ended up basically being

complete BS in fact take a look at this

this right here is the group of Seven's

unemployment rate over the last 200

years about actually more like 250 years

you can basically see the unemployment

rate has with the exception of like

booms and busts

pretty much stayed constantly low like

three to four percent

over the last 250 years kind of wild

here we are on jobs day talking about

unemployment

so why hasn't there been a massive wave

of unemployment anytime we get

Innovations well look at this line this

one's particularly relevant in centuries

past there were no Cloud Engineers new

jobs are created as the result of new

technology there were also no YouTubers

yet there were plenty today

second there are things that robots

can't do like persuasive argumentation

chat GPT isn't great at being very

persuasive but it's pretty good at

getting you Baseline information that

sometimes you stop the fact check uh

number three

Technologies increase our productivity

and wealth and they also increase our

standard of living and also give us more

free time so that way we can demand

other services like personal fitness

trainers which basically creates more

jobs for first personal fitness trainers

think about it if 150 years ago we're

all farming how many of us farming are

like oh yeah let's now also get a

personal fitness trainer like nobody so

you're like I just had my personal

fitness it was called plowing that's

right I plowed all day long

anyway so oh yeah here's that example of

150 years ago I thought that was really

interesting but anyway now Innovation

leaves us open to more Leisure and

Hospitality better standard of living

here's your agricultural industry

agricultural industry plummeting over

time giving way to other services

Leisure and Hospitality education and

health the more Innovation you have the

more education you need the more people

need to understand how to type how to

use a computer how to code uh you know

if there was no Health Care system in

the in the past

because nobody knew what they were doing

other than here have some alcohol and

bite on this rag while we chop your leg

off you know you don't really need much

education but now that we have a modern

medical system you actually do need to

educate doctors for years sometimes six

to ten years which is wild

um shout out to the people who go

through that for a Health Care system

thank you but anyway uh then look at

this they give an example Ford in the

Model T they're like oh no the conveyor

belt is going to replace workers AOC is

going to be pissed of the early 1900s oh

wait no what did the conveyor belt

system actually do it actually reduced

the cost of

the vehicle from 950 in 1909 to just 290

dollars by 1926 massively increasing the

number of people who could afford a car

making them more productive because now

more people could drive on newly built

highways and go shopping in new strip

malls or shopping centers that were

built outside of cities and they could

live in suburbs and they could go to

Advanced schools and they could have

more Leisure Time and they could build

their wealth

huh Innovation is surprisingly a good

thing

a surprise surprise in fact look at this

particular chart this particular chart

is first of all what's shocking is look

at a time where we had little Innovation

between 1209

and 1709 you had basically negative real

wage growth in other words if you were a

worker in 1650 you made less money than

the worker in 1209 because basically

inflation reduced your your real wage

growth that's insane that 400 years

later you technically made less money

but that's because Innovation was

basically non-existent

whereas when you actually put Innovation

into

our society look at what happened to

real which that's very important because

real means inflation adjusted what

happened to inflation-adjusted earnings

they skyrocketed what happened to

productivity per person

it skyrocketed

now what's fascinating about this is

there were estimates back in the day

that basically people like uh John

Maynard Keynes suggested that hey you

know not only are you going to have

better health and you'll be able to live

longer I mean look at this apparently

today we are seven inches taller than

our pre-industrial ancestors so 150

years ago people were seven inches

shorter we're getting taller because of

modern Healthcare interesting never

thought about that before I understand

the life expectancy is at least gone up

maybe it's stagnated in recent years in

fact that's what some people argue is

like oh but well we've stagnated since

the Great Recession true but maybe now

ai is actually going to help us get that

next big boost right unless of course

you're a lot either you're like leave me

alone Ai No I don't want to learn about

Ai No I don't want to take the catch up

to speed course from Kevin on featuring

AI which drops June 6th at 6 pm and yes

after Kevin finishes his work this

morning it's finally going to change

those prices is and you can still email

them at staff and meet kevin.com to lock

in your best price

before the prices go up but anyway

going back to this what's really

interesting and I love this stuff is

look at this

I'm just gonna read this one because

it's so fascinating me even the most

eminent economists have overestimated to

the extent that which humans would find

themselves

underemployed as a result of economic

progress back in 1930 John Maynard

Keynes famous Keynesian Economist he

basically created that wrote an essay

called economic possibilities of our

grandchildren he predicted that living

standards in the century would be four

to eight times higher which actually

proved to be correct living standards

did go up four to eight times however

people didn't work less see he thought

people would go down to just 15 hour

work weeks because of innovation

that didn't happen though the work week

hasn't really gone down that much

and there are potential reason for the

work week not going down that much is

actually potentially because maybe work

provides a sense of purpose and

fulfillment and that when you're

unemployed

you actually have more negative Health

outcomes you gain more weight you're

more unhealthy you feel less happy

you're more depressed but when you're

working and you feel like you're

actually contributing to to real growth

and you can make a meaningful change

that's actually what makes you most

potentially happy

and now you know that's would be on an

average that might not necessarily be

true of everyone but I thought this was

interesting humans are inherently

ambitious and will always seek out ways

to progress themselves so even if we all

become richer in the future individuals

are unlikely to accept a good standard

of living as defined in 2023 instead

they will strive to oh boy keep up with

others which will likely involve

remaining in work to earn more money as

a result even if some of our Newfound

wealth in the future is used to enjoy

more leisure time it is highly unlikely

we see a complete one-to-one

substitution of labor for leisure in

conclusion

if AI does prove or then we gotta talk

stimulus okay that's why I put this note

here because I knew I'd almost forget if

AI does prove disruptive then it is to

be expected that policy makers will

protect workers against any short-term

employment disruption whether that is

via laws regulation or a redistribution

of income

oh that's interesting so this is where

we go to how the he double hockey sticks

are we ever remotely going to go back to

stimulus with these high levels of debt

that we face today

and what's actually the most simple

explanation of how you can have stimulus

with these high levels of debt

is quite frankly the following

so write down what the level of debt is

today so we're going to write T equals

well we'll just do T Sub Zero T Sub 0

will be time equals now okay so T Sub

Zero

31 trilly debt

23 rounding a little bit here truly

economy

that means we have a debt to GDP using

these numbers here of about

134 percent

so we have more debt than our economy

makes right that's bad it's basically

kind of like also saying we spend more

than we take in right we're upside down

now let's go to

t plus 10. so in other words 10 years

from now

what if in 10 years from now because of

the productivity that AI creates in

other words people still work 40 hours a

week they're able to be so much more

productive that they make more money and

their wealth goes up and hopefully they

you know they invest like we talk about

in the stocks and psychology money

course or the real estate zero to

millionaire course whatever it's how I

went zero to millionaire way before

YouTube Real Estate

uh and people have more time to spend on

stuff now all of a sudden

you could why I suppose you could work

more but you could also spend more which

is cool you could travel more or

whatever uh what if our economy explodes

faster than the rate of debt

and with AI this is likely to happen so

now all of a sudden let's take our

economy and let's say our economy 10xes

over the next 10 years

and so we go to

230 trillion dollars of an economy this

is Extreme it's unlikely to 10x but

let's just make the math simple to

understand how this could function

so say the economy 10x is over the next

10 years

now your debt five x's over the next 10

years okay well 5x would put you at

about 155 trillion in debt now what is

your debt to GDP

well now your debt to GDP ratio is

actually just

67

so now what does this mean well it means

between

now and 10 years from now you could

potentially spend

124 trillion more dollars which

basically is like

41 cares acts of stimulus 41 cares acts

of stimulus and if I'm off by a factor

of 10 here then

four cares acts you see what I mean but

the point is

to say

if the economy does become rapidly more

productive just like it has in history

right here if this is what happens over

the next 10 years then as Deutsche Bank

tells us yes you are going to likely see

quote dislocations in labor markets okay

in the short term and those are going to

be protected how are those going to be

protected they are going to be protected

with

laws regulation

or redistribution of income in other

words likely some form of

Universal basic income probably not cold

Universal basic income because that's

deemed too Progressive or leftist but

something more like a higher

unemployment insurance like remember the

days of you know 500 a month or or how

about this one you remember these days

every American should be paid two

thousand dollars a month at minimum just

to be able to survive and put food on

the table now the problem with that is

is that going to cause massive inflation

well if you have this sort of

productivity not necessarily

remember let me catch you up to speed

what caused inflation during the

pandemic it was not the slow increase

the spending

it was the sudden increase of spending

that this spike is what caused inflation

you could fact check on me on this this

is very easy all you have to do is type

in the Google Saint Louis Fred and then

type in uh you know total Federal

Reserve balance sheet and then we could

see basically the total assets of the

Federal Reserve which is a way of saying

how much money did the Federal Reserve

print

and if we look at uh the last 10 years

it's either relatively slow or negative

and you can do that right here

relatively slow growth or negative and

if you look at this massive explosion

here well no surprise that that massive

rapid explosion caused inflation but

if over the next 10 years you do more of

what we did during 2010 and 2018 where

you gradually or more gradually spend

more money on basically stimulative

style programs for people who are being

replaced by AI or some form of Ubi then

what actually happens is you can in a

weird way massively grow the economy

while stimulating more and while not

causing inflation

that is what we're going to leave it off

on because that is pretty wild to think

about

you could have Ubi with no inflation and

a more productive economy and a richer

economy and one where people are more

productive however you just have to

remember the biggest warning that I

think out of this piece was right here

the biggest risk would come from failing

to embrace new technologies

exactly why you should embrace the how

to make more money and get sh-19 done

faster course featuring AI with the AI

lectures dropping on June 6th at 6 pm

we'll see you there

[Music]

now I want you to know this when it

comes to AI

time is what's going to make you money

and if you can prove that value to an

employer you'll always be able to be

employed so this is another way of

making sure that you don't get replaced

but

all right