For 100 years, labor consistently received 70% of national income while capital received 30%, a pattern explained by the Cobb-Douglas production function (Y = A × K^α × L^(1-α)) where α represents the capital share of approximately 0.3. However, artificial intelligence may disrupt this century-old regularity because AI can perform work autonomously without requiring human labor, potentially shifting income distribution away from the traditional labor-capital split.
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The 70/30 Rule — and Why AI Might Break It #ShortsAñadido:
For 100 years, labor took 70% of national income. Capital took 30.
Cobb-Douglas explains it. Y equals A times K to the alpha times L to the 1 minus alpha. The exponent alpha is the capital share, about 0.3, 70-30. But AI may break this. Capital that does the work. The 100-year regularity ends.
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