alt Hacker NewsIf all jobs were taken by AI in a short time span, the companies owning and operating those AIs would go out of business as no one would be able to afford the products made by the AIs. This is an unlikely scenario. Not all things will be made/run by AIs in a short time. It is far more likely that specific jobs in specific industries will be taken by AI, and AI will slowly take the labor market. This will drive down prices on products, services, and labor. Once human labor's price is low, and once many product prices are low, the overall employment level of humans will rise. The effect of AI then is actually just deflationary pressure on all prices over time.
The really scary part is what happens to all of the newly unemployed people between the falling prices part and the rising employment part. My guess is, governments and markets won't move quickly enough and unrest is what happens.
Replies
We might just keep making more jobs and coming up with more busy work to keep people grinding away for 40 hours a week.
If you look at 1940, women were ~24% of the workforce. Now in 2025 they are ~48%. The numbers are probably similar with immigrant workers having increased greatly in the last 80 years.
If you view AI workers as just more labor flooding the workforce it might have a similar affect. If we flooded the 1940s economy with 10s of millions of qualified women and immigrant laborers people would have viewed it as devastating to the economy, but introduced gradually over time we arrive at a point now where we fear what would happen if they went away.
> the companies owning and operating those AIs would go out of business as no one would be able to afford the products made by the AIs
What do you think money is...?
Money is a way to indirectly trade labour and goods. If a job is automated, that labour doesn't disappear into the aether, it's still in the tradable pot of total goods and services. You cannot empty a pot by filling it. A world where a company though automation has made there nobody else to productively sell to is a world where _by definition_ they own all the output that they could otherwise have traded for.
If machines did all the repetitive, labor intensive, productive work, including building more machines, the natural consequence would be a very disruptive rethinking of economics. Post-scarcity is only a disaster if money exists. People would still work, but as a hobby, not as a way of survival.
Think of it as if in a few generations, everyone had the motivations of a rich junior, for better or worse.
IMO, this is a natural consequence of the industrial revolution, and the information revolution. We started to automate physical labor, then we started to automate mental labor. We're still very far form it, but we're going to automate whole humans (or better) eventually.
Edit: I think I replied to the wrong comment, feel free to ignore this.
I think you arn't paying attention: AS long as there's 1 seller and 1 buyer, Capitalism will happily burn the rest of the population.
Sure there's some other limits on social cohesion, but the idea that we can't squeeze upward and leave a bunch of poor people destitute is optimistic.
It's also how you ensure no one thinks: Hey, maybe capitalism isn't an optimal distribution of social good.
There are millions of jobs that can be fully automated with 20th century technology but are still done by humans today because 1) third world labor is just too cheap 2) unions and other job protection policies.
Therefore the scenario where 'all jobs being replaced in a short time span' is simply impossible.
We are already at a point where the richest 10% of Americans represent half of total consumer spending. A lot of companies would fail but plenty of them would survive just fine if we assume AI won't take literally ALL of the jobs.
As for the civil unrest, I see Minneapolis as a bit of a dry run of what it would take to remove large numbers of presumably poor minorities along with anyone else who objects. The job is clearly more than the leadership expected but it still seems within the realm of possibility given the fact the minority party leaders are barely saying no to those in power.
> If all jobs were taken by AI in a short time span, the companies owning and operating those AIs would go out of business as no one would be able to afford the products made by the AIs
I think The companies would go out of business if the government did not subsidize them as a matter of public or national security interest. Do you think that would not be the case? It doesn't take much for a company with money to lobby for this and for the power of marketing and mainstream media to make the public perceive this as the right decision - in fact a study of our history would reveal this as the more likely scenario so as a company racing to render the labor market obsolete its in their interest to disrupt it to capture any amount of it.
Except the services that are intractably human: educators, judges, lawyers, social workers, personal trainers, childcare workers.
Those will suffer the Baumol effect and their prices will rise to extraordinary levels.
Also just to be clear on the outcome of what you said: Humans will be cheaper than AI in order to compete.
AI uses 10litres of water and 10kwh of power per day to digg a hole? You'd better do it for less human!
I'm not sure on the human needs costs vs the AI costs and what lifestyle it would allow me. I'm sure as shit not having kids in such a world. I suspect it's ghetto like meager living while competing against machines optimised to do a job.