The video provides a sharp application of the Jevons Paradox, correctly arguing that increased efficiency will drive infinite demand for software rather than mass layoffs. It’s a pragmatic reminder that in a competitive market, productivity gains are almost always reinvested into expansion and complexity.
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Everyone Is Wrong About AI CodingAñadido:
It doesn't matter where you look, everyone is talking about how quick and good AI is, especially when it comes to writing code. And even if we assume all of these statements that they're saying are 100% true, which in reality most of them are over exaggerated, I'm still not worried about AI taking over programming jobs. Let's just take the base level claim that AI can write code 10 times quicker than I can as a developer. And let's assume that this AI code is 100% perfect code of the exact same quality that I would write. Maybe even it's better quality than the code that I myself would write. So, we're getting 10 times the output by using AI as opposed to handwriting code, and the quality stays exactly the same. I personally don't believe that you get this with AI, but even assuming all of these statistics, I still don't think AI is going to replace programmers. The reason being, imagine that you are a CEO at a company that's publicly traded, your number one goal is to create as much profit as possible for your shareholders that have your stock. That's just what a publicly owned company, especially in the US, is supposed to do. So, your goal is to maximize profit. And now imagine that I come to you and I say I can make every single one of your developers 10 times more productive. You can crank out features and products like you've never been able to do before. All you need to do is just start using AI. What are you going to do? Are you going to say, "Oh, this is great. I'm now going to fire 90% of my workforce so that I can be exactly the same as I was before." Or are you going to say, "Wow, this is a huge competitive advantage. I can now use this AI and my same exact workforce that I have, and I can create 10 times as much content or features or updates that all my other competitors can do, which will skyrocket my stock price and all of the different things related to my company are going to be good because I'm 10 times more productive than everyone else." Clearly, it makes sense to choose that second option. And if you were a company that decided instead of choosing that second option and being 10 times more productive, you're going to fire 90% of your workforce and stay exactly as productive as you are, all of your other competitors are going to be taking advantage of that 10 times increase and they're going to surpass you and your company will essentially fade out and die. So, if that's the case, why aren't we actually seeing these 10x improvements? You may know that the job market, especially for programming, is just not great right now. The entire job market is not great, but programming as well, it's just not a great job market right now. And the reason for that actually has nothing to do with AI replacing programmers and instead the fact that the market is just not in a good place right now. The entire economy is down, jobs across the board are down, spending is down, and overall companies are hesitant to hire when they're in these type of situations where the entire economy is down. This is especially compounded by the fact that companies, especially tech-related companies, massively over-hired in like 2020, 2021, 2022, even into 2023 because there was a massive boom during COVID, everyone was at home, tech companies skyrocketed in valuation, and they massively over-hired. They kept on that workforce for a while, but as the economy started to go down, they realized, "Why are we keeping all these additional people on? We over-hired and have more developers than we can actually handle." So, they fired off those developers, and that's why the economy has not been great for job markets in the exact programming niche.
Now, those most companies are going to say, "Oh, the reason we're firing all these developers is so that we're going to be implementing AI and it's replacing all of our developers." But in reality, what's happening is they have a hard market, they're losing profit, and they're saying, "Well, thing to do when we're losing money like this is to fire some developers cuz we have too many."
And instead of going to our shareholders and saying, "Hey, our company's losing tons of money, so we're firing people."
Instead, they say, "Hey, we're like super cool and we're using AI in all of our products, so we now we can fire people because AI's making our business better." Even if that's not true, it just sounds a lot better, so that's what they tell the shareholders to keep their stock price high as opposed to saying, "Hey, our company's actually losing money, which is why we're firing people." There have been countless times throughout the history of even just programming where new technology or their tools have come along that have drastically increased the performance of developers and made them better and quicker at writing high-quality code.
And I will admit that AI is a massive multiplier compared to some of these other things, but I don't think the result is going to be any different.
Yes, AI when used by a competent developer is going to be able to create more code than someone that's not using AI. And if it's done right, it can create just as high-quality code, but at a much faster pace. But that doesn't mean that we're just going to sit back and say, "Well, now we can, you know, spend less time writing code." Instead, we're going to create more code than ever before and create more features and more products, because that's just how the world works. When you have more resources that you can put towards something, you're going to put those more resources towards that thing to continually expand, because there are infinite numbers of ideas out there, and there's only a finite amount of resources. So, if we can multiply those resources, that just means that we can serve more of those infinite number of ideas that people have. Now, you may be thinking, "Well, what if the AI gets good enough to completely replace programmers?" And for that, I just want to direct you to this video right here where I talk all about that problem.
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