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>Your reply misses the point.

No it doesn't. Capital becomes obsolescent, labor does not.

>What happens when we develop technology which can do 99% of what a human can do better, faster, and cheaper?

During 99% of recorded history, agricultural labor was the prevailing definition of "what a human can do".



Labor has not yet become obsolete. That doesn't mean it can't.

I'm not talking about the prevailing definition of what a human can do. I'm talking about the actual fact of what a human can do.

You still haven't addressed the question of what will happen when nearly everything which a human being is capable of can be done better by a machine.


Labor does not become obsolete. Inefficient capital is discarded, but less efficient labor is always useful to some degree, because of comparative advantage (http://en.wikipedia.org/wiki/Comparative_advantage#Example_1).

This holds even for the scenario of AI becoming a very close substitute for humans. The economic pressure, however, is to develop AI in directions that are complementary to human abilities.




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