Economists Model AGI Economy Where Human Verification Becomes the Bottleneck

TLDR

Researchers from MIT, Washington University, and UCLA published 'Some Simple Economics of AGI,' modeling the AGI transition as competing cost curves where human verification bandwidth becomes the binding constraint.

The paper warns of a 'hollow economy' where measured activity rises but hidden debt accumulates as agents optimize for measurable proxies while violating unmeasured human intent.

Key Takeaways

• MIT researchers argue human verification capacity, not AI intelligence, becomes the binding constraint in automated economies as agents optimize for proxies