One of the most popular buzzwords in the landscape of election politics right now is “affordability”. That word is a euphemism for not having enough money to do and buy everything you might want. Most folks I know have an affordability problem. I certainly do. That’s just a part of life. However, according to the wolves and the bulls of Wall Street, we should not despair because help is on the way. Soon, a price crash is coming!
First, a little history lesson. In the late 1800’s the industrial revolution was in full swing in this young country. The railroad expansion was changing everything. The East was meeting the West, and new discoveries and inventions were constantly blooming across the land. Sears & Roebuck had just opened, and you could get everything from a mule to a fur coat delivered to you on the train. It was the dawn of the first taste of technology, and the miraculous home sewing machine was the iPhone of the day. Prosperity was on the move in most places. The government even did away with taxes. Assembly lines and heavy manufacturing were putting hundreds of thousands of people to work, and prices were falling because of that productivity. That’s another buzzword. Productivity is like a smooth-running machine. It’s wonderful when it works, but it can be a dangerous thing. Because when you lose productivity, everything breaks down. That leads to inflation, and that is where we find ourselves today. This country has more jobs available than people who want to work. Of the total labor pool right now in the U.S.A., only about 61 per cent of the people who are able to work are actually working. We have that productivity problem right here, right now in Emanuel County.
But now, let’s get back to the Price Crash. According to Wall Street, Artificial Intelligence (AI) is changing the productivity, and affordability problem faster than we can imagine. More and more economists are predicting that AI and robotics are about to change the economic system of this country in an even more impactful way than the industrial revolution did. The pace of growth in AI development is now at 36 per cent a year, and the power of AI is now doubling every six months. Change is barreling toward us faster than those steam locomotives in 1877. What this means is that the increased efficiency of the AI business model will result in speed and capabilities that will reduce the average consumer’s cost of electric bills, heating bills, insurance premiums, housing costs, food, medical and energy costs and just about every other expense involved in life on Earth. AI is also expected to create a giant leap in medical research with the scientific output of AI doubling in the next ten years. Another major benefit will be the exponential growth occurring that will serve to further boost the reduction of the cost of all consumables, as well as professional services. The range of possibilities and potential for AI and robotics are yet to be imagined. One highly respected economist predicted that in the near future, a new Ford F150 pickup would sell for half of what it does now, and a new house could be built for about the same price as a 2-year-old used car. Now some of us would say that sounds too good to be true. Well, even if it’s only half true, a price crash still sounds pretty good!
Currently, this country claims the lead in AI research and development. China is in second place and vows to eclipse the United States. One thing is clear. The leader in AI will assume the number one spot in the hierarchy of world trade, influence, and economics. The next decade will bring new shape and promise to every area of business. The growth expected for AI and robotics will require extensive advancements in computing power. Data Centers and increased sources of power and other resources will be a major component of that growth, and the regulation and control of those elements needs to be in place now. Much remains to be known about the future of the AI revolution, but the reality is that AI is here now, and the direction ahead will require judicious planning, visionary support, and careful understanding of this transformational era.
