If AI causes mass unemployment, who becomes the consumer?
We are seeing a ton of layoffs right now, with leadership explicitly citing AI efficiency. But looking forward, this seems like a massive economic dead end.
If AI scales to the point of replacing significant chunks of both digital and physical labor, consumer spending power drops off a cliff. If the average person is laid off or underemployed, they aren't buying the software, products, or services these AI systems are running.
Are we looking at an inevitable systemic collapse of the consumer economy, or is there a piece of the puzzle I'm missing? How do corporations scale profit when they're actively shrinking the market's purchasing power?
TL;DR, Think of it like a reverse Henry Ford. Ford doubled wages so his workers could afford to buy the cars they built. If AI replaces those workers, companies are essentially 'firing' their own customers. Who buys the product when the paycheck that paid for it is gone?