The Economy of Dignity: AI, Automation, and the Role of the State

This article critically examines the contemporary approach to technological progress, contrasting it with the concept of the economy of dignity. Drawing on the work of Nobel Prize winners Banerjee and Duflo, the authors point to the trap of excessive automation resulting from misguided tax and institutional incentives. The article debunks the myth that every innovation automatically translates into social well-being, introducing the concept of "so-so" technologies, which replace human labor without significantly increasing productivity. It highlights the role of the state as an "economist-plumber," which must actively intervene in a "sticky" economy to protect the stability of the middle class and prevent phenomena such as "deaths of despair." Instead of simple solutions like UBI, the article emphasizes the politics of meaning, recognition, and equitable allocation of innovation in times of climate and social crisis.