Category Archives: Coming soon…

AI will be the downfall of us.

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Vox Popoli, https://www.voxday.net./

The AI Layoff Trap

Neither this paper nor the underlying idea are particularly new, but since non-economists are now starting to discuss it, I should probably take a look at it:

Two economists just published a mathematical proof that AI will destroy the economy.

Not might. Not could. Will — if nothing changes.

The paper is called “The AI Layoff Trap.” Published March 2, 2026. Wharton School, University of Pennsylvania. Boston University. Peer reviewed. Mathematically modeled.The conclusion is one sentence.

“At the limit, firms automate their way to boundless productivity and zero demand.”

An economy that produces everything. And sells it to nobody. Here is how you get there. A company fires 500 workers and replaces them with AI. A competitor fires 700 to keep up. Another fires 1,000. Every company is behaving rationally. Every company is following the incentives correctly. And every company is building a trap for itself.

Because the workers who were fired were also customers. When they lose their jobs faster than the economy can absorb them, they stop spending. Consumer demand falls. Companies respond by cutting costs — which means automating more workers — which means less spending — which means more falling demand — which means more automation.

The loop has no natural exit. The researchers tested every proposed solution. Universal basic income. Capital income taxes. Worker equity participation. Upskilling programs. Corporate coordination agreements. Every single one failed in the model. The only intervention that worked: a Pigouvian automation tax — a per-task levy charged every time a company replaces a human with AI, forcing them to price in the demand they are destroying before they pull the trigger.

No government has implemented this. No major economy is seriously discussing it. Meanwhile the numbers are already tracking the curve. 100,000 tech workers laid off in 2025. 92,000 more in the first months of 2026. Jack Dorsey fired half of Block’s workforce and said publicly: “Within the next year, the majority of companies will reach the same conclusion.” Nobody is doing anything wrong. Companies are following their incentives perfectly. That is exactly the problem.

I don’t have an opinion yet, since I haven’t read the paper, but I expect that I will find two things:

  1. Overrating the productivity of AI. I’m already using older AI models because they work better than the newer ones.
  2. An erroneous demand model.

But that may not be the case. Regardless, I will read it, Red Team it, and share my conclusions when they are ready.

Posted on by VD

I grew up listening with my parents to CBS News Radio, can’t say I am not gratified to hear it is gone.

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Vox Popoli, https://www.voxday.net./

CBS News Radio (1927-2026)

Another casualty of technology + social justice: CBS News Radio ceases broadcasting tonight.

CBS News Radio, which provides news programming to an estimated 700 stations spanning the United States, will sign off the air Friday night after nearly a century of broadcasting. The storied service, launched in September 1927, was home to broadcast legends Edward R. Murrow, Robert Trout, Douglas Edwards, Charles Osgood, Dan Rather and many other familiar and trusted voices over its decades in operation.

“It’s been around for a long time. Really, an American institution is what we’re losing here,” said Steve Kathan, the longtime anchor of the CBS World News Roundup.

“CBS Radio should be remembered for becoming a national institution very important to the development of news other than newspapers,” Rather recently told “CBS Sunday Morning.” “It, for many, many years, was a part, and I would argue not a small part, of what held the country together.”

The decision to shutter the radio news service was announced in March, with the company citing “challenging economic realities.”

Once you cease to be useful to the Black Rider, you will be thrown from the high horse. And if CBS News Radio was a part of holding the country together, it was doing so for the benefit of the ruling elite. Obviously that same elite now has other instruments capable of fulfilling the same function.

Posted on by VD