>For example horse business going bankrupt while car business is booming.
replyBut also the car business is far larger than the horse business ever was. It is not zero-sum; every time Henry Ford's factory spit out a new model T, real wealth was being created.
Money is just a standin for wealth. If we suddenly doubled the amount of wealth in the world, we could just print more dollars to match - or the existing dollars would just become worth twice as much.
This. Positive sum games are deflationary. Economic policy can, and has, offset the deflation of techno capital growth.
replyIf you show productivity, banks have no problem lending you money (new freshly printed money)
replyIndeed, although there are also pressures pushing banks to lend out money regardless of created wealth. This is why there's so much investment into stupid things like AI - they call it TINA or "There Is No Alternative" (to put your dollars into). The scale of AI is as big as it is because there were huge pools of money sloshing around looking for things to invest into, that's the underlying problem that caused the RAM crisis, not AI itself.
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