Essays on the far future of intelligence

AI and us, right now · part 2 of 2 · by Bill Guan

When a mind can be copied, its wage falls toward the price of its computer

The big question

What happens to wages when a skilled worker can be copied in seconds?

Economists have worked this through in surprising detail. You're about to see why scarcity is what wages rest on, and the one open question that decides whether wages collapse or rise forever.

Picture the best surgeon in the world, and then picture a million copies of her, each with the same skills and the same memories, made in a few seconds and ready to start work. The economist Robin Hanson spent a whole book on a world like that, and to see what it does to wages, it helps to know how the world's income splits today.

Your guess first

Today, what share of the world's income goes to workers as pay, rather than to the owners of capital?

Wages are high where workers are scarce, and copies end the scarcity

ONE SURGEON, A MILLION COPIES$copyin secondsA MILLION OF HERscarce, sopaid wellWAGEWAGEwithin about 4×of that costcost to rentthe hardwareone of a kindone of a million

Today, if a company wants another excellent surgeon or engineer, it has to train one or lure one away from somewhere else, which takes years and costs a fortune, and that scarcity is why skilled people get paid well.

Hanson calls his brain copies "ems," short for emulations. "Scan a human brain, then run a model with the same connections on a fast computer, and you have a robot brain, but recognizably human," he writes, and "an existing em is easily copied into that hardware, resulting in a new em with exactly the same memories and mental habits" 1. If the best surgeon in the world can be copied a million times, the surgeon stops being scarce, and so does every other skill.

Hanson's conclusion is stark: "almost all wages fall to within roughly a factor of four of the cost to rent em hardware and supporting utilities," which he notes is the kind of "'Malthusian' wages" that "have described most humans before the industrial era" 1. In other words, a worker earns roughly what it costs to keep the worker running. He also expects an em economy to double in size every few weeks 1.

Nick Bostrom reached a similar conclusion in his book Superintelligence: human labor would earn "wages at around the price of the substitutes," while "capital (including AI) will earn all of the income, which will be a lot" 2.

Workers already get just over half of the world's income

HOW MUCH INCOME GOES TO WORKERS?to workersto capital (owners)US, post-war range60 to 66%US, second quarter of 2026lowest ever52.8%The whole world, 202552.6%"about two-thirds"what you may have heardhalf

If capital ends up earning nearly all the income, it helps to know where we start from. The International Labour Organization puts the share of global income going to workers at 52.6% in 2025, below its 2019 level of 53.0% 3.

Here's what surprised me: you may have heard that workers get about two-thirds, but that's a long-run average for rich countries 4, and even that has slipped. In the US, the share of business income going to workers hit "52.8 percent in the second quarter of 2026, the lowest level ever recorded," down from a post-war range of "60 to 66 percent" 5.

Wages collapse or rise forever depending on whether harder tasks run out

DO HARDER TASKS EVER RUN OUT?ENDLESS LADDERLADDER WITH A TOPharder tasksnever run outWAGES MAYRISE FOREVER?tasks have a top,and machines reach itWAGESCOLLAPSEfullautomation

To be fair, economists don't all agree that copyable minds mean poverty for workers. Anton Korinek and Donghyun Suh modeled the transition to AI that can do human work and found it depends on one thing, which is whether there's an endless supply of harder tasks that only humans can do. "If the distribution of task complexity exhibits a sufficiently thick infinite tail, then there is always enough work for humans, and wages may rise forever. By contrast, if the complexity of tasks that humans can perform is bounded and full automation is reached, then wages collapse" 6.

Picture tasks as a ladder that gets harder with every rung. If the ladder goes up forever, people always have a higher rung to move to, and if it has a top, the machines eventually reach it. Korinek and Suh add that "declines may occur even before" full automation if automation outpaces the building of new machines 6.

So far the strain shows up in young workers' jobs

It's early, and the honest summary is mixed. A Stanford study updated in August 2026 found "no evidence of widespread, economy-wide job displacement," but that young workers aged 22 to 25 in jobs most exposed to AI now have employment "19% below where it would be" if they'd kept pace with their peers 7. The authors call these early indicators rather than proof of cause 7.

How people actually use AI still leans toward working alongside it. In a January 2026 report from the AI company Anthropic, 52% of conversations were classified as people being helped by AI and 45% as tasks handed over to it entirely 8.

Whoever owns the copies collects the income

Two questions follow, and both feel more urgent every year. The first is about ownership: if capital earns nearly everything, then owning capital is how anyone gets an income, whether directly through shares in the funds that own the machines or through governments that own capital and pay out to citizens. Families that save the most would pull further ahead every year, because their wealth would compound while wages stood still.

The second question is stranger: should people who only exist digitally get an income too? If a copy of you runs on a server, does it get paid, and who decides?

My assessment: whoever owns the copies owns the economy's output, and economic power has a way of turning into political power. If copyable minds arrive in a world where a handful of companies own the hardware, wealth could concentrate faster than at any time in history. Ownership rules are human choices, though, and they're easiest to set before the copies exist.

Sources

  1. Robin Hanson, The Age of Em (2016), summary at ageofem.com. ageofem.com/
  2. Nick Bostrom, Superintelligence (2014), ch. 11, pp. 160 to 163, as summarized by Katja Grace, "Superintelligence 17: Multipolar scenarios," LessWrong (2015-01-06). www.lesswrong.com/posts/8QgNrNPaoyZeEY4ZD/superintelligence-…
  3. International Labour Organization, Employment and Social Trends 2026, Executive Summary (January 2026). [TBD: stable URL; fetched via researchrepository.ilo.org]
  4. Berthold Herrendorf, Richard Rogerson and Ákos Valentinyi, "Growth and the Kaldor Facts," Federal Reserve Bank of St. Louis Review (2019). www.stlouisfed.org/-/media/project/frbstl/stlouisfed/publica…
  5. US Bureau of Labor Statistics, The Economics Daily (2026-09-15). www.bls.gov/opub/ted/2026/labor-share-at-its-lowest-level-52…
  6. Anton Korinek and Donghyun Suh, "Scenarios for the Transition to AGI," NBER Working Paper 32255 (2024). arxiv.org/abs/2403.12107
  7. Erik Brynjolfsson, Bharat Chandar and Ruyu Chen, "Canaries in the Coal Mine?" Stanford Digital Economy Lab (rev. 2026-08-12). digitaleconomy.stanford.edu/publication/canaries-in-the-coal…
  8. Anthropic, "Anthropic Economic Index: January 2026 report" (2026-01-15). www.anthropic.com/research/anthropic-economic-index-january-…