Lukasz Rachel(@LukaszRachel):TLDR: whether wages go ⬆️ a lot as the K-share ⬆️ depends almost entirely on Pi:=cost of doing the newly automated tasks with L vs w AI. If you write Y=K^aL^{1-a} you're implicitly assuming Pi is huge, like 10x-35x 🤖 No surprise u'll find huge wages gains. Pls, report your Pi‼️

2026.09.29 09:36

TLDR: whether wages go ⬆️ a lot as the K-share ⬆️ depends almost entirely on Pi:=cost of doing the newly automated tasks with L vs w AI. If you write Y=K^aL^{1-a} you're implicitly assuming Pi is huge, like 10x-35x 🤖 No surprise u'll find huge wages gains. Pls, report your Pi‼️

Lukasz Rachel@LukaszRachel

2026.09.27 22:57

I recently argued that AI-driven rise in capital share may not bring as large wage gains as some expect. That was all steady state stuff:( and Time for transitions! 1/N #Econtwitter# Updated paper here:

Forward to community