AI Adjustment Worksheet

 

I'm just idly sketching a possible adjustment to aggregate demand calculations consequent to a novel hypothesis of the nature of aggregate demand.

[from Wikipedia]

The aggregate demand is usually described as a linear sum of four separable demand sources:

 AD=C+I+G+(X-M)

where

C is consumption,

C= C(0) + c(Y-T) where

C(0) 

is autonomous consumption 

c

Is marginal propensity to consume

Y

 is consumers' income and 

T

 the taxes paid by consumers

I 

is investment,

G

 is government spending,

NX=X-M

 is net exports

[original thought]

The hypothesis is that AD constitutes an industrial commons, a shared resource to motivate and constrain the production of goods and services, which is subject to intervention as justified by a century of precedent to maintain supply and demand equilibrium and enable a healthy economic growth.

To manage AD in the Age of AI a term comprising the fiduciary steward adjustment of the consumers' income (Y) to maintain the same level of AD plus a sustainable yearly increase must be added, FS, in the manner (.03Y+Y+{FS-T})

The FS is a fee, comparable to the registration fee of a working animal to establish responsibility for liabilities incurred, assessed on a registered AI and disbursed directly back to consumers. It is tied to the nominal price ∆ of the goods and services consumed from year to year plus a healthy increase in the fashion ({.03Y+Y}+[{FS∆P}]-T)

and is composed of a per token (LLM) fee, FSL, where applicable and a per hour of operation (RL) fee, FSR, where applicable 

Giving the complete formula:

AD=

[C(0)+c({.03Y+

Y}+{FSL+FSR}∆P-T)]+I+G+(X-M)

Do Well and Be Well