The economy has always followed an intricate pattern; firstly labour creating value, value then creates then creates income, and then income funds consumption.
With the emergence of AI, that circle is becoming a thing of the past.
One can't help but ask the curious question: if machines produce more value, but humans own few productive assets, who maintains consumer demands?
The future if Capitalism would e such that, production capacity increases, but mass purchasing power weakens. Surely a defining crisis the AI era has created.
I think you have not heard that AI is getting expensive with time, and the tokens or credits they are buying are becoming more expensive than their workers. We already know how small companies have outsourced workers remotely and saved a lot of money, which became their profit, and with AI they can easily change their workforce and lay people off whenever they want.
But AI is becoming more expensive than employees, and that is why when Nvidia advertised their model, they said it was going to be the cheapest of all time. Even the machines used to run these LLMs are not cheap, so companies might depend on AI or AI agents, but they still need developers, the ones who understand AI better. So we will see labour shifting from one job to another. People are not going to give up that easily, they still have to make a living, although they might stop spending much and only spend on necessary things.
