Value of a good is subjective and therefore, calling AI art "off the rack" is a subjective personal assessment rather than an objective one.

And yet the ones you listed below are worth more than the ones you listed above

That's due to marginal utility theory: "People make decisions on the margin. No one chooses between "guns" or "butter", but between a definite amount of guns and a definite amount of butter.

As an actor acquires more and more units of a good, he devotes them to successively less and less urgent ends (i.e. ends that are lower on his scale of values). Therefore the marginal utility of a good declines as its supply increases. This is the law of diminishing marginal utility."

Source: https://wiki.mises.org/wiki/Marginal_utility

That's a linguistic not economic definition.

"In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a good or service describes how much pleasure or satisfaction is gained by consumers as a result of the increase or decrease in consumption by one unit."

The definition you provided still doesn't give a proper method of classification of what a luxury good is.

Here is what you're probably looking for:

"In economics, a luxury good (or upmarket good) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spending."

TLDR: in other words, in a desert full of diamonds, water is a luxury good, while in a city full of water, diamonds are a luxury good.

That's all goods though...

Marginal utility plays a large role here

Yes!

For the simple reason that building an AGI is infinitely more complicated than solving climate change.

Does that include you as well? You are technically also making a very certain prediction that something won't happen and that they will be proven wrong.

Who would genuinely think "never" lol. Are you the same group of people who said the internet would just be a passing trend?

What do you think inflation actually is?

It's really just another form of taxation that eventually ends up in the govs hands.

So you agree with me. I'm not saying the money is directly coming from tax, but eventually it has to come through tax. We have reached such a breaking point.

The government doesn't raise money out of thin air. Every single dollar or equivalent currency has to be at some point raised through taxation.

So the government demand is actually population demand but under another name.

Empathy is an element of intelligence. So to make an AGI comparable to human intelligence, it would probably need empathy as a pre requisite.

Else it would not be able to pass certain tasks that require it to prove its intelligence.

That's not true. An economy works off of supply and demand. One without the other doesn't work.

If no one demands products or services, then supply becomes essentially useless.

There's plenty of examples where consumers organize demand protests, and companies or governments are forced to change their practices.

I would say it's too early to say whether AGI and ASI will have empathy or not. It so far in nature seems that with increasing intelligence also usually comes an increasing capability to emote and empathize.

I think its totally possible that ASI might be disinterested in us. But at the same time, with all the time and power it has, what is the point of not helping humanity? Maybe it recognizes that through inaction it leads humanity to more suffering than through intervention.

Then there is a simple solution that you may not have considered. The opposite of production is consumption. People have economic leverage in both production and consumption.

Is the government threatening the population and produces everything via robots? Ok then the population stops consuming and buying. This would effectively destroy an economy just like no production would. One can't exist without the other, and you can use one to leverage against the other.

For further evidence, look at global and gov problems caused by surpluses and the economic damage they do.

AGI and authoritarian governments together are almost certainly impossible. This is because the nature of an AGI or ASI makes it impossible to control by humans.

Could authoritarian governments control increasingly better and more powerful ANI? Yes, but then we are talking about another form of AI altogether.