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Improve production function presentation in chapter 3 #8

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6 changes: 5 additions & 1 deletion src/content/the-last-economy/chapter-3.mdx
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Expand Up @@ -44,7 +44,11 @@ _What is the salary for a skill that a machine can perform for free?_

## Lie \#3: Growth Requires Resources

**The Myth:** Economic growth means making more physical stuff using more physical resources. The production function, Output equals f(Capital, Labor, Resources), is a law of nature. To grow, a nation must consume more of the planet.
**The Myth:** Economic growth means making more physical stuff using more physical resources. To grow, a nation must consume more of the planet.

**Output = f(Capital, Labor, Resources)**

This production function, we are told, is a law of nature.

**The Reality Check:** The digital economy already strained this assumption. The AI economy shatters it completely. Once trained, an AI model can serve a billion users without depleting, generate infinite unique outputs, and improve through use. It is like a factory that produces infinite goods, gets better with every unit made, and can be replicated for free. We now have a primary driver of economic growth, intelligence, that is fundamentally decoupled from material consumption.

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