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Rob Urie: No Path Forward, No Way Back, Imperial Decline Edition

The potential for AI-driven mass unemployment poses a significant threat to American social stability, as current political leadership prioritizes capital gains over the welfare of the broader workforce.

Key Points

  • Projections suggest AI could displace 50% to 60% of the U.S. workforce, far exceeding the 25% unemployment rate seen during the Great Depression.
  • Capital’s share of national income has steadily risen over the last 50 years while labor’s share has declined, reflecting a long-term trend of wealth concentration.
  • AI companies like Anthropic and OpenAI face questions regarding profitability, as costs for compute power often scale linearly with revenue.
  • Chinese firm DeepSeek has developed AI architectural efficiencies that provide a significant cost advantage over current U.S. competitors.
  • U.S. manufacturing employment has failed to grow since 2016, contradicting political promises of reindustrialization and highlighting a reliance on financialization.

Why it Matters

The aggressive pursuit of AI-driven automation without a social safety net risks triggering widespread economic collapse and civil unrest. This reliance on speculative technology as a primary economic engine threatens to hollow out the middle class and permanently destabilize the nation's political and social foundations.
Nakedcapitalism.com Published by Yves Smith
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