Member-only story
Now That AI Has Removed Labour as a Factor of Production
Time to make your side hustle the main event.
Foundational economics taught us that there are four factors of production:
- Land
- Labour
- Capital
- Entrepreneurship
An inseparable quartet. Or so it used to be.
Civilization, as it progresses, has been consistently striking out individual factors of this quartet. First land, and now labour, leaving out capital and entrepreneurship as the crucial factors for production.
As this shift happens, the game is no longer about your skills and time for a wage. It’s about walking in a world where only Entrepreneurship and Capital truly matter.
How we got here
All four factors of production were critical before the Industrial Revolution. This was a time when agriculture was the mainstay of the world’s economy.
Acres were power, and a lord’s influence was measured by it. Labour was the muscle of that world. Capital was the hard currency and tool needed to start and keep the ball rolling, and entrepreneurship was the cunning and vision required to orchestrate all of it.
