marcianx

Now to expand GP's example (still simplified):

- A borrows $100k money to pay B toward building a house. B puts $100k in their bank.

- C borrows $90k from B's bank toward building a house to pay D. D puts $90k in their bank.

- etc

So, houses were created (or other services were provided), and that's the real multiplicative factor. If banks loan out 90% of the cash stored (i.e. keep 10% in reserve [1]), the multiplicative factor of value creation in the economy is 10x the original amount of cash deposited in the first bank.

Now, if all of us withdrew our savings at once or sold all our stocks at once, we would have an economic shock analogous to that which resulted the Great Depression. That's why for banks, we have FDIC insurance - to mitigate such a panic so that money can serve its value-multiplicative role when it's not being actively used for anything else by the person owning the money. That's also why a positive (but low) inflation was originally considered economically healthy - so that people put their money in banks/market rather than under their mattresses gradually losing value. When interest rates are low, that encourages people to put their money into riskier (non-FDIC-insured) investments with higher growth potential, like a balanced portfolio of stocks/bonds/etc to avoid losing value to inflation, resulting in more economic growth.

Similarly, say, for video editors, using AI to more intelligently rotoscope (especially with alpha blending in the presence of motion blur - practically impossible to do it manually), would be a great use of AI, removing the non-creative tedium of the process.

It's not clear where the line is though. I was quite impressed with Corridor Crew's (albeit NVidia+Puget-sponsored) video [1] where they photographed dolls, motion-captured human actors moving like the dolls, and transferred the skeletal animation and facial expressions to those dolls using GenAI. Some of it required nontrivial transformative code to accommodate a skeleton to a toy's body type. There's a massive amount of tedium being removed from the creative process by GenAI without sacrificing the core human creative contribution. This feels like it should be allowed -- I think we should attempt to draw clearer lines where there are clearly efficiency gains to be had to have less "creative" uses be more socially acceptable.