How does the economy work if everyone gets laid off and human jobs disappear?

If almost all jobs got replaced by AI, here's what happens: 1) Corporate revenue collapses - since humans do not have the means to buy product. It leads to demand destruction at an all-time level. 2) At the same time, there's a massive deflationary supply shock, thanks to democratization of production and the ubiquity of AI-led labor. The direct consequence of the aforementioned is: a price collapse, across the board. Which in turn, also leads to unprecedented tax revenue collapse. Who're you going to tax when no individual or corporate is making any money? To me, all this heralds a post-capitalism society, and not a "I-lost-my-job-and-I'm-now-poor" society. Once everyone loses their jobs, capitalism is over. Sure you can have an interim period of distress - where the world is transforming toward post-capitalism but isn't squarely there yet. But the final equilibrium intuitively feels more Star Trek (or Terminator, if you're a doomer), and much less Elysium or Ready Player One (few oligarchs, most population under poverty line). Correct me if I'm wrong. submitted by /u/mhb-11 [link] [留言]