Post #2664696
2026-04-13 06:41 UTC
Economics paper (Falk & Tsoukalas, 2026): AI layoffs are a prisoner's dilemma.
Each firm captures full automation cost savings but bears only a fraction of the demand destruction. So every firm automates past the collective optimum.
Punchline: higher AI productivity makes it *worse*. Gains cancel at equilibrium — only the distortion remains.
Red Queen Effect: you run faster, stay in the same place. The ground just collapses faster.
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