🚨 AI layoffs could become the economy’s biggest trap
A new UPenn + Boston University game theory paper warns mass AI layoffs can trigger a demand collapse across the economy
→ Companies cut jobs to save costs
→ Workers lose income and stop spending
→ Revenue falls across sectors
→ Long-term, even firms that automated can suffer
The paper’s key takeaway:
unchecked automation can become a self-destructive race, with a “robot tax” proposed as the main policy fix
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