Joe

Whovian. Savoyard.

[Joe @19Joeyo]

@arquimarx @ygzgzot https://t.co/IlV3xQzbDE

[Joe @19Joeyo]

@mtheythem Musk is describing the preconditions for a communist society. He does not understand that, in what he projects, private commodity production is obsolete and can only survive through absolute feudalism. Full automation cannot be stopped; capitalism can. https://t.co/MuqGTmpTo1

[Joe @19Joeyo]

Spoke at length in my recent substack article about how mass automation decreases the profitability of commodity production. Mainstream economists are increasingly investigating this area but haven’t put it together that capitalism creates the preconditions for its untenability.

[Superman @thesupermanmx]

Two economists mathematically proved that AI will destroy the economy.

Researchers from Wharton and Boston University published a terryfiying paper called "The AI Layoff Trap."

They mapped out the economic end-game of the AI transition, and it exposes a fatal flaw in competitive capitalism.

When a company replaces a worker with AI, it captures 100% of the wage savings.

But that displaced worker is also a consumer. When they lose their job, they stop buying things.

The company gets all the savings, but the loss of consumer demand is spread across the entire economy.

If there are 20 competitors in a market, a CEO only absorbs 1/20th of the economic damage their layoffs just created.

So every single rational CEO has a mathematical incentive to automate as fast as possible.

They can literally see the cliff approaching, and they still step on the gas.

It triggers an unavoidable Prisoner’s Dilemma. If you don't automate, your competitors will, and they will crush you on price.

It doesn't just hurt workers. It destroys the businesses, too.

The economy gets trapped in an automation arms race. Companies fire their workforce to stay competitive, until the entire consumer base is completely hollowed out.

At the limit, the paper concludes: “Firms automate their way to boundless productivity and zero demand.”

And the scariest part?

The researchers mathematically tested every popular fix.

Universal Basic Income? Fails. It raises the living standard but doesn't change the corporate incentive to cut jobs. Retraining? Fails. Worker equity? Fails.

The paper proves that more competition actually makes the collapse happen faster. And "better" AI makes the damage worse.

The only thing that mathematically stops the collapse is a targeted automation tax, forcing companies to pay for the purchasing power they destroy before they automate the job.

[Joe @19Joeyo]

@KSWarzala The unequal exchange must be abolished.

[Joe @19Joeyo]

@redf0undation Especially true in the age of accelerating climate disasters. https://t.co/XoeUk9fb5G

[Joe @19Joeyo]

@NxtDeterio The first step should be to explain why it is accelerating and why it is not the working class’s fault; that reproducing and expanding profit presupposes labour intensive, unsustainable industries. We must earn the trust and loyalty of the proletariat if we are to effect change.

[Joe @19Joeyo]

@wilding_gyres https://t.co/uaRNxwJC01

[Joe @19Joeyo]

@PyramidHead76 Full automation abolishes the source of profit, making private commodity production obsolete and capitalism unsustainable. Class society could only survive through absolute feudalism, fascism or slavery, so the whole economy needs to be publicly owned. https://t.co/K3NcPctjv9

[Joe @19Joeyo]

@homosovieticus_ By private property, I mean private commodity production. Full/mass automation makes socialism a historical imperative because the alternative is social breakdown.

[Joe @19Joeyo]

@die_rizzen https://t.co/uaRNxwJC01

[Joe @19Joeyo]

@PyramidHead76 Full automation abolishes the source of profit, making private commodity production obsolete and capitalism unsustainable. Class society could only survive through absolute feudalism, fascism or slavery, so the whole economy needs to be publicly owned. https://t.co/K3NcPctjv9

[Joe @19Joeyo]

@Bolshevice Socialism = social ownership of the economy; one that is totally publicly owned.

[Joe @19Joeyo]

@dramasavant @die_rizzen That’s not the argument we make, it’s just the quickest way to disprove spurious correlation using its own logic.

[Joe @19Joeyo]

@dramasavant @die_rizzen Spurious correlation only tracks if the other factors of production affect prices as consistently, which the first batch of graphs disprove. Otherwise all it says is that bigger industries need more labour or there happens to be more labour in bigger industries, which boons LTV.

[Joe @19Joeyo]

@_Anunnery May interest you:

[Joe @19Joeyo]

@marxseventh May interest you:

[Joe @19Joeyo]

@HimboSlayer9000 @Y40IFRQTTING One of the reasons so many ‘bullshit jobs’ exist in the West is because capitalism needs a retail economy to realise surplus value (profit) accrued from the global south. It does this by paying workers artificially inflated wages, raising their marginal propensity to consume.

[Joe @19Joeyo]

@chronononono May interest you:

[Joe @19Joeyo]

@die_rizzen 3/3

[Joe @19Joeyo]

@die_rizzen 2/3

[Joe @19Joeyo]

@PBresnihan

[Joe @19Joeyo]

@Psychonaut1001 https://t.co/uaRNxwJC01

[Joe @19Joeyo]

@PyramidHead76 Full automation abolishes the source of profit, making private commodity production obsolete and capitalism unsustainable. Class society could only survive through absolute feudalism, fascism or slavery, so the whole economy needs to be publicly owned. https://t.co/K3NcPctjv9