The book behind the paper includes lots more detail. Its introduction is quite cheery:
The end of dramatic exponential growth in single-processor performance marks the end of the dominance of the single microprocessor in computing... There is no guarantee that we can make parallel computing as common and easy to use as yesterday’s sequential single-processor computer systems, but unless we aggressively pursue efforts suggested by the recommendations below, it will be “game over” for growth in computing performance. If parallel programming and related software efforts fail to become widespread, the development of exciting new applications that drive the computer industry will stall; if such innovation stalls, many other parts of the economy will follow suit.
I have an engineer friend who has recently put forward the idea that computing technology is approaching becoming a 'mature' technology, like the automobile in the 1950s. It gets a job done and does it well, every change made after that point is a matter of small incremental tweaks. Yeah you get twice the gas mileage now as you did then after a load of small changes with diminishing returns, but is it really all that different? Other friends of mine working as programmers have reacted favorably when I relayed this idea.
Also, why should slower development of new applications for the computer industry kill the economy?
Summary: Intelligence Explosion Microeconomics (pdf) is 40,000 words taking some initial steps toward tackling the key quantitative issue in the intelligence explosion, "reinvestable returns on cognitive investments": what kind of returns can you get from an investment in cognition, can you reinvest it to make yourself even smarter, and does this process die out or blow up? This can be thought of as the compact and hopefully more coherent successor to the AI Foom Debate of a few years back.
(Sample idea you haven't heard before: The increase in hominid brain size over evolutionary time should be interpreted as evidence about increasing marginal fitness returns on brain size, presumably due to improved brain wiring algorithms; not as direct evidence about an intelligence scaling factor from brain size.)
I hope that the open problems posed therein inspire further work by economists or economically literate modelers, interested specifically in the intelligence explosion qua cognitive intelligence rather than non-cognitive 'technological acceleration'. MIRI has an intended-to-be-small-and-technical mailing list for such discussion. In case it's not clear from context, I (Yudkowsky) am the author of the paper.
Abstract:
The dedicated mailing list will be small and restricted to technical discussants.
This topic was originally intended to be a sequence in Open Problems in Friendly AI, but further work produced something compacted beyond where it could be easily broken up into subposts.
Outline of contents:
1: Introduces the basic questions and the key quantitative issue of sustained reinvestable returns on cognitive investments.
2: Discusses the basic language for talking about the intelligence explosion, and argues that we should pursue this project by looking for underlying microfoundations, not by pursuing analogies to allegedly similar historical events.
3: Goes into detail on what I see as the main arguments for a fast intelligence explosion, constituting the bulk of the paper with the following subsections:
4: A tentative methodology for formalizing theories of the intelligence explosion - a project of formalizing possible microfoundations and explicitly stating their alleged relation to historical experience, such that some possibilities can allegedly be falsified.
5: Which open sub-questions seem both high-value and possibly answerable.
6: Formally poses the Open Problem and mentions what it would take for MIRI itself to directly fund further work in this field.