@MFordFuture
There's a book about this! New version, updated for the latest advances in #AI published on June 2, 2026. https://t.co/SlmhidXAAQ
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There's a book about this! New version, updated for the latest advances in #AI published on June 2, 2026. https://t.co/SlmhidXAAQ
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"text": "🚨RESEARCHERS JUST MATHEMATICALLY PROVED THAT AI LAYOFFS WILL DESTROY THE ECONOMY.. AND EVERY CEO ALREADY KNOWS IT.. BUT NONE OF THEM CAN STOP..\n\nTwo researchers from UPenn and Boston University just published a paper called \"The AI Layoff Trap\"..\n\nThey proved something terrifying..\n\nEvery company replacing workers with AI is also firing its own customers.. Every laid-off employee is someone who used to spend money.. When enough people lose their jobs.. Nobody can afford to buy anything.. And the companies that fired everyone go bankrupt selling products to an economy with no purchasing power..\n\nEvery CEO can see this coming.. The math is obvious.. Fire workers.. Lose customers.. Lose revenue.. Collapse..\n\nBut here's the trap..\n\nNo company can afford to stop..\n\nIf you don't automate.. Your competitor will.. They cut costs.. Undercut your prices.. Steal your market share.. And you die anyway..\n\nSo every company automates.. Knowing it's collectively suicidal.. Because the alternative is dying alone while everyone else survives..\n\nIt's a Prisoner's Dilemma.. And the researchers proved it mathematically..\n\nThe numbers are already stacking up..\n\nBlock cut nearly half its 10,000 employees this year.. CEO Jack Dorsey said AI made those roles unnecessary and that \"within the next year, the majority of companies will reach the same conclusion\"..\n\nSalesforce replaced 4,000 customer support agents with AI..\n\nGoldman Sachs deployed an AI coder that lets one senior engineer do the work of a five-person team..\n\nOver 100,000 tech workers were laid off in 2025 alone.. AI was cited as the primary driver in more than half the cases..\n\n80% of US workers hold jobs with tasks susceptible to AI automation..\n\nAnd here's what should scare policymakers..\n\nThe researchers tested every proposed solution..\n\nUniversal Basic Income.. Doesn't fix it.. It raises living standards but doesn't change a single company's incentive to automate..\n\nCapital income taxes.. Don't fix it.. They change profit levels but not the per-task decision to replace a human..\n\nWorker equity and profit sharing.. Narrows the gap but can't close it..\n\nCollective bargaining.. Can't fix it.. Because automating is a dominant strategy.. No voluntary agreement between companies is self-enforcing..\n\nOnly one thing works.. A Pigouvian automation tax.. A per-task charge that forces every company to pay for the demand it destroys when it fires a worker..\n\nThe researchers call it a \"Red Queen effect\".. Better AI doesn't solve the problem.. It makes it worse.. Because every company sees a bigger market share gain from automating faster than rivals.. But at the end.. Everyone automates equally.. The gains cancel out.. And the only thing left is more destroyed demand..\n\nThe paper's conclusion is devastating..\n\nThis isn't a transfer from workers to company owners.. Both sides lose.. Workers lose their income.. Companies lose their customers.. It's a deadweight loss that harms everyone..\n\nAnd no market force can break the cycle..\n\nThe AI layoff trap isn't a prediction.. It's already happening.. And the math says it won't stop on its own.",
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