Will AGI Erase Capital’s Share?

Tyler Cowen sketches two thought experiments for a future in which extremely capable AI (AGI) drives capital’s income share toward zero: (1) if capital and human labor are persistent complements, astronomical capital intensification dilutes measured capital income; (2) if AGI is a perfect substitute for human labor, the abundance of capitalized intelligence could make capital effectively free and unpriced. Both are presented as reductios but invite concrete modeling and policy attention. — If robust, this possibility would reorder tax policy, redistribution, ownership rules, and industrial strategy — it changes who gets paid in the economy and therefore who should be regulated, taxed, or supported.