As much as you may want to move from the low to high equilibrium, it would be pretty hard in an ancient society. In the modern world, with enough exuberance, it seems much easier.
As much as you may want to move from the low to high equilibrium, it would be pretty hard in an ancient society. In the modern world, with enough exuberance, it seems much easier.
Because we definitely seem to be in a world where GDP inflation is getting more and more divorced from incentives to actually produce things.
With respect to AI and the paper being discussed specifically, all evidence I've seen is that AI's primary applications are within military and intelligence and that the escalating arms race in those domains is actively undermining things that people would generally like to see being produced (food and housing specifically are illustrative here).
Notably, one of the reasons that the military industrial complex can be hard to unwind is that it works well for capital and workers. Consider all the programs you've heard of which boast about providing jobs in every single state. Whether these different equilibria are better or worse for labour (or fractions of labour giving you your diverging K-shape) is a separate question and potentially changes over time.
One historical event you could model as a change in equilibria was the industrial revolution. Instead of elites consuming economic surpluses, the economy change into a mode where those surpluses could be reinvested in productive capital, new technology, and manufacturing in a self-reinforcing cycle (of course these avenues didn't really exist before). Famously, within this new equilibria, labour did not do well at first; awful conditions in factories with terrible life expectancies. But those workers' grandchildren lived lives of relative prosperity as a result.
All of which is to say, the existence and description of multiple equilibria in economies is a different question from how labour and capital fare in those equilibria.