I can’t find the quote, but years ago I read a quote by an economist that went something like
economics is the field of starting with raw materials and changing them until they are useful finished products
Something like that. Basically you start with the complete raw materials like minerals in the earth, and the end result if you have computers, cars, food, etc.
I guess productivity could be seen as ‘how effective are we at goal oriented behavior, problem solving, overcoming obstacles, combatting entropy, and converting useless raw materials into useful finished products, per unit of effort/capital invested’.
But again, this also ties back into what I mentioned earlier that we always go for the easiest problems first. once those are solved, the next layer of problems is more complex and the payoff is smaller. Then the next layer is even harder with a smaller payoff.
This quote about John Von Neumann is also relevant
He demonstrated theorems in 5 minutes, resolved master’s and doctoral problems in a conversation, and had more knowledge than specialized people on all kinds of subjects
Especially the part about resolving masters and doctoral problems in a conversation. The amount of effort it took a graduate student to solve those problems is far far higher than the amount of effort it took Von Neumann to solve them.
I don’t know if there is any objective way to measure how much effort it takes to solve a problem, esp considering that humans have different capabilities of problem solving.
Like if you measured cognitive productivity in hours of thought for example, Von Neumann could accomplish far more in 12 hours of thought than most people could accomplish in 120 hours of thought.
With AI we have the cost of tokens. Like a million input tokens may cost $0.10 and a million output tokens may cost $0.40. But as AI advances it’ll be better at problem solving, and the cost of tokens will continue to go down. In a couple years AI will be better at problem solving and it may only cost $0.01 per million input tokens and $0.05 per million output tokens.