At LewRockwell.com, George F. Smith discusses the assumptions that artificial intelligence could lead to socialism. He concludes that artificial intelligence cannot kill the free market, writing:

There is nothing in AI or AGI that requires the imposition of force. But socialism and its variants does. Socialism as an economic and sociological theory was thoroughly debunked by Ludwig von Mises in 1920 and again in 1922. As Mises argued in his 1920 essay, socialism suffers from the fatal absence of market pricing. Even the best-selling socialist author Robert Heilbroner admitted in 1990, “It turns out, of course, that Mises was right. The Soviet system has long been dogged by a method of pricing that produced grotesque misallocations of effort.”

The only purpose of an economy is to create goods and services that satisfy human wants, not to create jobs. If AI eliminates jobs in the sense we now understand it, other opportunities will emerge for value creation as they have before when new technologies upset the status quo. Human wants are unlimited, and theory and history have shown that a market free from state intervention is the best way to satisfy them.

A recent poll shows more college students favor socialism than capitalism. This is hardly surprising given the socialist orientation of universities and their misrepresentation of capitalism. As Mises wrote in Socialism, “The terms ‘Capitalism’ and ‘Capitalistic Production’ are political catchwords. They were invented by socialists, not to extend knowledge, but to carp, to criticize, to condemn.” The economic system that has sent students “graduating with four-year degrees saddled with mountains of debt and little marketable skills” is the Federal Reserve-income tax-warmongering-interventionist-big government monstrosity that is a gross perversion of capitalism.

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