Hollow Economy vs. Augmented Economy

A hot paper — "Some Simple Economics of AGI" — has been making the rounds, so we sat down with the author, covering: 

• Automation vs. verification: the key economic split 
• Why AI agents now feel like coworkers - What's happening to junior roles and the “codifier’s curse” 
• The “AI sandwich” structure for firms 
• The value of "meaning-makers," consensus, and status economies 
• Why crypto may become essential infrastructure for identity, provenance, and trust 
• Two possible futures: a hollow vs. augmented economy 

Featuring Christian Catalini (founder of MIT Crypto Economics Lab) and Eddy Lazzarin (CTO of a16z crypto) in conversation with Robert Hackett, our discussion dives deep into how automation is reshaping labor markets, as well as the nature of intelligence. 

What do these changes mean for startups, the future of work, and your career? 

Highlights 

00:00 Introduction 

01:47 AGI economics optimism and playbook 

05:39 Agents as coworkers 

07:39 Software work becomes verification 

10:47 Automation versus verification 

12:03 "Unknown unknowns" and taste 

16:27 Human augmentation and intent 

17:55 The "AI Sandwich" and "Codifier's Curse" 

21:54 "Meaning-makers" and the human touch 

23:48 Crypto for identity and trust? 

27:10 Measurability: How to think about it 

33:23 Machine coordination and art after automation 

35:46 Trojan horse risks 

37:47 Liability and insurance 

41:08 Crypto and verification 

44:31 A hollow vs. augmented economy 

49:45 Career advice in the AI era 

51:26 The one-person billion-dollar startup 

57:15 Open-source as antibodies 

58:42 Blockchains for coordination 

01:01:49 Closing thoughts 

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