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Joseph's avatar

Good job.

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Joseph's avatar

Respectfully S. Meguerdijian

Your article effectively addresses the enduring challenge of poverty through a blend of historical, economic, and moral perspectives, making it both thought-provoking and informative. One of its strengths lies in its clear explanation of how land scarcity and rising rents contribute to economic inequality, illustrating this point with relatable examples of urban development. The incorporation of Henry George’s land value tax proposal adds historical depth and a potential solution for redistributing wealth. Additionally, the article’s moral appeal, grounded in biblical teachings, lends a compassionate and ethical dimension to the discussion, encouraging readers to consider both systemic and individual actions to combat poverty.

However, the article has notable weaknesses that could be improved for a more robust argument. While it touches on potential solutions, such as land value taxes and better land use management, these ideas are not explored in detail, leaving readers with a limited understanding of their feasibility or implementation. Moreover, the article underplays the potential of AI to address economic inequality, focusing solely on its limitations without considering how technological advancements could alleviate poverty through innovations like job automation or improved access to services. Expanding these areas would strengthen the article’s practical relevance and provide a more balanced perspective on the complex interplay between poverty, land use, and AI.

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Saro Meguerdijian's avatar

Thank you for your thoughtful comment. The article's purpose was to show that technological progress and increasing incomes alone does not necessarily lead to broad prosperity, and that tech utopianism should be tempered with an understanding of the economic forces that produce poverty even in the midst of prosperity. The technology does not need to be AI to produce this paradoxical effect - it simply needs to increase the productivity of workers. In light of this, the application of Biblical principles, such as charitable giving, can help the people who fall into poverty due (paradoxically) to economic progress.

Regarding the feasibility or implementation of land value taxes and similar Georgist principles, there have been implementations around the world (https://en.wikipedia.org/wiki/Land_value_tax#Implementation). Different approaches exist, such as directly taxing the unimproved portion of properties at a certain percentage of its value per year, having the government own all land and lease it for use for private buildings, etc. With respect to land use management, there has been research stating that local land use regulation limits the productivity of the construction industry (e.g., single-family zoning restricts economies of scale enjoyed by large housing complexes) (https://www.nber.org/system/files/working_papers/w33188/w33188.pdf). However, regulations such as single-family zoning can also restrict the efficiency of land use as a factor of production: for example, if a vacant lot can be used to build multiple housing units but the city's zoning only allows for a single-family home, the land would be economically underutilized with respect to housing. (This may or may not be the best outcome depending on other factors - for example, if the local electric utility cannot power multiple units, a single-family home may be the best one can do. But still, this means that the land is physically underutilized for housing purposes.) Land use management is complex, and while general solutions can be suggested, jurisdiction-specific nuances can arise.

AI's ability to alleviate poverty is an interesting point. It depends on how one looks at the causation of poverty. Poverty can be caused in a number of ways, including: poor choices, laziness, misfortune, oppression, low labor productivity, low real incomes, conflict, hunger, sickness, poor infrastructure (which inhibits trade), lack of personal or social safety nets (cf. https://concernusa.org/news/causes-of-poverty/ for examples - linking does not imply endorsement). AI as mentioned above - job automation, improved access to services - would help insofar as it removes the causes to poverty. AI definitely can increase labor productivity and increase real incomes by reducing the cost of producing goods and services. AI may also be helpful in advising people to make better choices or more efficiently administrate government social safety nets. However, AI's ability to address other causes of poverty, such as conflict, is debatable.

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