Part 11/16:
Dalio references economist Thomas Sowell, who states that economics fundamentally concerns the allocation of scarce resources with alternative uses. In a world where AI minimizes physical and knowledge-based scarcity, human time, effort, and labor could emerge as the remaining scarce resources. Due to declining birth rates and aging populations in many countries, the pool of human workers might shrink, intensifying the importance of how societies allocate human effort.