I don't recall the actual problem being mentioned in Tunnel Under The World. Of course, I don't have a text copy to hand ... quote?
It was a while ago that I read it, but there's this passage:
...He had been to the factory once, with Barth; it had been a confusing and, in a way, a frightening experience. Barring a handful of executives and engineers, there wasn't a soul in the factory—that is, Burckhardt corrected himself, remembering what Barth had told him, not a living soul—just the machines.
According to Barth, each machine was controlled by a sort of computer which reproduced, in its electronic snarl, the actual memory and mind of a human being. It was an unpleasant thought. Barth,
Today's post, Nonsentient Optimizers was originally published on 27 December 2008. A summary (taken from the LW wiki):
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