Efficient markets route around bottlenecks. Technological revolutions accelerate the speed at which that re-routing happens.
In software, we, the developers, have increasingly been a bottleneck. The world needs WAY more software than we can economically provide, and at long last a technology has arrived that will help route around us for the benefit of humanity.
Here's an excellent Casey Handmer quote from a recent Dwarkesh episode:
> One way to think about the industrial revolutions is [...] what you're doing is you're finding some way of bypassing a constraint or bypassing a bottleneck. The bottleneck prior to what we call the Industrial Revolution was metabolism. How much oats can a human or a horse physically digest and then convert into useful mechanical output for their peasant overlord or whatever? Nowadays we would giggle to think that the amount of food we produce is meaningful in the context of the economic power of a particular country. Because 99% of the energy that we consume routes around our guts, through the gas tanks of our cars and through our aircraft and in our grids and stuff like that.
> Right now, the AI revolution is about routing around cognitive constraints, that in some ways writing, the printing press, computers, the Internet have already allowed us to do to some extent. A credit card is a good example of something that routes around a cognitive constraint of building a network of trust. It's a centralized trust.
> In software, we, the developers, have increasingly been a bottleneck. The world needs WAY more software than we can economically provide, and at long last a technology has arrived that will help route around us for the benefit of humanity.
Everything you wrote here is directly contradicted by casual observation of reality.
Developers aren't a bottleneck. If they were, we wouldn't be in a historic period of layoffs. And before you say that AI is causing the layoffs -- it's not. They started before AI was widely used for production, and they're also being done at companies that aren't heavily using AI anyway. They're a result of massive over-hiring during periods of low interest rates.
Beyond that, who is demanding software developers? The things that make our lives better (like digital forms at the doctor's office) aren't complex software.
The majority of the demand is from enshittification companies making our lives worse with ads and surveillance. No one is demanding developers, but certainly individual humans aren't demanding them.
Yes, the layoffs are a market correction initiated by non-AI factors, such as the end of the ZIRP era.
The world is chock-full of important, society-scale problems that have been out of reach because the economics have made them costly to work on and therefore risky to invest in. Lowering the cost of software development de-risks investment and increases the total pool of profitable (or potentially profitable) projects.
The companies that will work on those new problems are being conceived or born right now, and [collectively] they'll need lots of AI-native software devs.
> important, society-scale problems that have been out of reach because the economics have made them costly to work on and therefore risky to invest in
What are examples of these projects and how will AI put them back into reach of investment?
In software, we, the developers, have increasingly been a bottleneck. The world needs WAY more software than we can economically provide, and at long last a technology has arrived that will help route around us for the benefit of humanity.
Here's an excellent Casey Handmer quote from a recent Dwarkesh episode:
> One way to think about the industrial revolutions is [...] what you're doing is you're finding some way of bypassing a constraint or bypassing a bottleneck. The bottleneck prior to what we call the Industrial Revolution was metabolism. How much oats can a human or a horse physically digest and then convert into useful mechanical output for their peasant overlord or whatever? Nowadays we would giggle to think that the amount of food we produce is meaningful in the context of the economic power of a particular country. Because 99% of the energy that we consume routes around our guts, through the gas tanks of our cars and through our aircraft and in our grids and stuff like that.
> Right now, the AI revolution is about routing around cognitive constraints, that in some ways writing, the printing press, computers, the Internet have already allowed us to do to some extent. A credit card is a good example of something that routes around a cognitive constraint of building a network of trust. It's a centralized trust.
It's a great episode, I recommend it: https://www.dwarkesh.com/p/casey-handmer