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I think people hold on to such hopes due to an aversion to the pain from empathy. The 'bad thing is actually good'. Related to the Just-World-Fallacy. I think this is a very natural human response, a psychological defense mechanism, especially for the set of circumstances that we can do nothing about. I get it, no one wants to feel bad and impotent.

For the post 2008 bounce back to happen the rents more than halved and hackerspaces could make use of temporary availability for even less money. Now we have a tech crash and rents are still going up. Additionally AI is unbounded - who knows if and when it'll plateau and what that would look like, that uncertainty alone prevents investment. And price is set at the margin - even if you use AI to make a product that you can sell, what is to stop someone else from doing the same and undercutting you. This is great from a consumer surplus point of view but increases in efficiency will lead to greater income inequality and that's going to really suck for people who can't compete in this new world.



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