> If AI displaces human workers faster than the economy can reabsorb them
Big if.
That is a huge "if" though. I am not sure either that the latter falls from this. When the US transitioned away from assembly lines or agriculture dominated, it's not as if consumer spending consequently collapsed.
When did the US transition away from assembly lines?
I don’t think you have thought through either one of these and I don’t think they are comparable to what we expect to see for AI’s changes to the job market.
But recommendations to tax efficiency are unironically that (just dressed in more serious language). “Please stop giving us what we want so efficiently, we want to work more for it!”
You're trying to make it sound ridiculous, but most people aren't pure consumers. They're laborers and consumers. Policies that hurt while wearing the consumer hat may be more than justified by the benefits while wearing the labor hat.
Companies produce goods which people consume. If you hand everything over to the oligarch class, how will people consume products built by companies???
The company itself has an impact on our society and needs to be "governed", so it seems reasonable for them to pay for that governance. Actually, it seems unfair that you can claim no profit and get out of paying for that governance.
I'd be really interested to know if companies pay the true cost of their impact to society, or if individual income tax has to pick up the tab.
In systems with progressive income tax, the total tax income from a company with 1 employee making X$ is more than if the company had 2 employees making X/2$, so essentially 'punishing' using highly skilled labour over more less skilled ones.
There are no perfect taxes, and current tax systems have adapted from a lot of practical concerns. Some of those is that's it's easier to tax money as they are moving around vs when they are sitting still (wealth or property tax), and it's easier to tax people than abstract entities like companies, since people have a harder time moving. And for the same reason, it's easier to tax the middle class than the owner class, since the richer you are the easier it is to move yourself and those you care about to wherever taxes are low these days.
All these practical concerns have made it such one of the most common ways for the state to get a share of the productivity of its society, is from income tax. But this is not a 'economic law' that if must be like that. If more and more of the productivity and wealth creation in society is produced such that there is little employment income involved, we will have to find other ways to tax it.
A purely machine economy would be far more efficient. Therefore in the limit we should eliminate reliance on human labor and consumption to build a more perfect and efficient world.
What can possibly go wrong
That's not how the capital class thinks of human consumption.
Perhaps it's then smart to make the humans have a brain/computer interface, to make then dream/think they are living in a normal society so they don't revolt.
Recently, I tasked it to study a new Czech building permit law in conjunction with some waste disposal regulations and the result was just tragic. The model (opus 4.6) just could not stop drawing conclusions from obsolete regulations in its training dataset, even when given the fulltext of the new law. The usual "you are totally right" also applied and its conclusions were most of the time obviously wrong even to a human with cursory knowledge of the subject.
I ended with studying the relevant regulations myself over the weekend.
To be fair, humans are also often like this. If some rule/law/model was deeply ingrained into them, they often cannot stop thinking in terms of that rule, even if they are clearly in a new context (like a new country).
At least that is what happened to me in australia and I only had a year of driving practice back then, but driving on the right side was already deeply ingrained and I had to be really aware of what I did.
But to be clear, I am not arguing models have real understanding of anything - I know they don't. My point was humans can be similar in pretending to have understood something, but if their core was modeled different, they will fall into old patterns again quickly.
I think it's reasonable to worry that way before machines are more reliable than the average human (let alone more reliable than a highly trained human) they can pose a significant disruption to the job market which will send shockwaves throughout society
We can all hate on the premise (ai is good enough to do this) and/or the solution presented (centrally enforced taxation), but you gotta admit:
the messaging from SV's AI leaders about how "ai will take all your jobs" is confused as fuck, because if so, who will be on the consuming end of things?
Maybe SV's AI leaders and other assorted trillionaires. A capitalist economy that drops any pretense of serving the needs of anyone except a tiny elite.
This isn’t a scientific study, it’s a militant manifesto
Don't be so sure: https://www.nytimes.com/2026/04/08/business/economy/blue-col...
If everyone is going to increase productivity by some factor k per employee, then kx is the new norm of overall productivity of x employees.
If you lay off some percentage Y of your work force, then your expected gains will only be k(x(100-y)/100). In other words, you will not recognize the same productivity gains as your competitors that chose not to lay off.
Yes I realize it is more complex than that, because of reduced opex, but there are diminishing returns very quickly.
rvz•1h ago
The abundance of mass layoffs and job displacement due to funding and building of AI systems is the true definition of AGI.
We might as well get there faster instead of delaying it. You have already seen Oracle and Block attributing their layoffs to AI so it is happening right now.
So why delay any further and just get it over with.
doesnt_know•1h ago
Aren’t you talking about destroying livelihoods? Pushing people into poverty and/or homelessness? What is the benefit exactly?
Closi•44m ago
There isn't much point in having people do jobs they don't like which are trivial to automate just for money, but at the point where there isn't enough economically useful things for everyone to do, the current system falls down.
> What is the benefit exactly?
Well one benefit would be international competitiveness. The country that does it slowest will be the country doing more work for less output.
samrus•38m ago
palmotea•6m ago
> ...but at the point where there isn't enough economically useful things for everyone to do, the current system falls down.
Not necessarily. To quote the Bobs from Office Space: "He won't be receiving a paycheck anymore, so it will just work itself out naturally." No need to change, just let the plebs die out.
SilentM68•37m ago
As of now, there is no benefit to regular working people. Perhaps in the future, great abundance will occur, but as of now, there will only be job loss, fear, neo-luddism, and blame.
Believe me when I say that I know people, some close to me, that are experiencing fear due to automated systems being installed and tested where they work. They are essentially witnessing start of their automated replacement robot workforce.
Whatever is planned in terms of AI being used to help people needs to happen, sooner rather than later, because all I am seeing is chaos in the horizon.
(⧘⟃⨅⟄⧘)≋≋≋⦻
mullingitover•56m ago
Seems like the obvious answer to the prisoner’s dilemma problem where everyone wants to lay off their workforce, but expects that they’ll be the only ones to get this bright idea.
friendzis•34m ago
That "simply" is working overtime here.
542458•18m ago
Don’t get me wrong, I think the end goal of “Tax those who can pay for it to build a social safety net” is reasonable, I just don’t buy the “negative externalities” argument.
542458•54m ago