The AI-powered Veblen economy

There has been much debate online recently about post-AGI economics. For example, Philip Trammell and Dwarkesh Patel made the case for taxing capital under the assumption that once AIs can do jobs better and more cheaply than humans can, the latter will be immiserated unless we do large-scale redistribution. The argument goes something like: Baumol effect arguments say that as long as there is…