🚨BREAKING: Two researchers from UPenn and Boston University just published a paper that should be uncomfortable reading for every CEO automating their workforce right now.
The argument is straightforward. Every company replacing workers with AI is also eliminating its own future customers. Laid off workers stop spending. Enough of them stop spending and nobody can afford to buy anything. The companies that fired everyone end up selling into an economy with no purchasing power left.
Every executive can see this. The math is not complicated. But here is why nobody stops.
If you do not automate, your competitor does. They cut costs, lower prices, take your market share, and you collapse anyway. So every company automates knowing it is collectively destructive because the alternative is dying alone while everyone else survives. The researchers proved this is a Prisoner's Dilemma playing out in real time.
The numbers are already moving. Block cut nearly half its 10,000 employees this year. Jack Dorsey said AI made those roles unnecessary and that within the next year the majority of companies will reach the same conclusion. Salesforce replaced 4,000 customer support agents with AI. Goldman Sachs deployed a coding tool that lets one engineer do the work of five. Over 100,000 tech workers were laid off in 2025 and AI was cited as the primary driver in more than half those cases. 80% of US workers hold jobs with tasks susceptible to AI automation.
The researchers tested every proposed solution. Universal basic income does not change a single company's incentive to automate. Capital income taxes adjust profit levels but not the per-task decision to replace a human. Collective bargaining cannot hold because automating is always the dominant strategy.
They also identified what they call a Red Queen effect. Better AI does not solve the problem, it accelerates it. Every company chases faster automation to gain market share over rivals but at the end everyone has automated equally, the gains cancel out, and the only thing left is more destroyed demand.
The one thing the math says could work is a Pigouvian automation tax. A per-task charge that forces companies to account for the demand they destroy each time they replace a worker.
The conclusion is that this is not a transfer of wealth from workers to owners. Both sides lose. Workers lose income. Companies lose customers. It is a deadweight loss with no market mechanism to stop it on its own.
(Link in the comment)
🚨BREAKING: Two researchers from UPenn and Boston University just published a paper that should be uncomfortable reading for every CEO automating their workforce right now.
The argument is straightforward. Every company replacing workers with AI is also eliminating its own future customers. Laid off workers stop spending. Enough of them stop spending and nobody can afford to buy anything. The companies that fired everyone end up selling into an economy with no purchasing power left.
Every executive can see this. The math is not complicated. But here is why nobody stops.
If you do not automate, your competitor does. They cut costs, lower prices, take your market share, and you collapse anyway. So every company automates knowing it is collectively destructive because the alternative is dying alone while everyone else survives. The researchers proved this is a Prisoner's Dilemma playing out in real time.
The numbers are already moving. Block cut nearly half its 10,000 employees this year. Jack Dorsey said AI made those roles unnecessary and that within the next year the majority of companies will reach the same conclusion. Salesforce replaced 4,000 customer support agents with AI. Goldman Sachs deployed a coding tool that lets one engineer do the work of five. Over 100,000 tech workers were laid off in 2025 and AI was cited as the primary driver in more than half those cases. 80% of US workers hold jobs with tasks susceptible to AI automation.
The researchers tested every proposed solution. Universal basic income does not change a single company's incentive to automate. Capital income taxes adjust profit levels but not the per-task decision to replace a human. Collective bargaining cannot hold because automating is always the dominant strategy.
They also identified what they call a Red Queen effect. Better AI does not solve the problem, it accelerates it. Every company chases faster automation to gain market share over rivals but at the end everyone has automated equally, the gains cancel out, and the only thing left is more destroyed demand.
The one thing the math says could work is a Pigouvian automation tax. A per-task charge that forces companies to account for the demand they destroy each time they replace a worker.
The conclusion is that this is not a transfer of wealth from workers to owners. Both sides lose. Workers lose income. Companies lose customers. It is a deadweight loss with no market mechanism to stop it on its own.
(Link in the comment)
The Mathematics of Life - where I explore how fractals determine how long complex biological systems (like us) last and how to get more out of your 2 billion heartbeat budget https://t.co/KUf8m3aRh6
How long do you think HDFC Bank will take to transfer the money from your account to your nominee's after you die? Public sector banks get a bad rap, but it's been more than a year and we have not been able to get funds transferred from my now deceased husband's account in the country's largest private bank.
The nominee is our adult daughter, there are no conflicting claims, the paperwork is clear, and yet for more than a year now HDFC has been giving us the run around. Get this paper, get that paper. Each time my daughter comes home for holidays, we have to take 2 days out to go and wait at the bank branch. Today, more than a year after the first application, they said
a) we can't find the paperwork including the death certificate you submitted because the employee you submitted to is not here
b) you have to get a stamp paper and notarise it for the auto debits that hit his account between the date of his death and the date the account was frozen (on the basis of the paperwork in point a, now non-traceable)
c) you have to get HDFC Standard life to sign off because there is an auto debit for an investment from his account. (ME: they are the payee, he is the payer, why does the payee need to approve stopping a standing instruction? Bank: Hamare main aise hi hai). If you wait for 30 minutes, we'll get you the form.
d) after 30 minutes. Sorry, we can't get the form, you have to go to their office and do it.
By now it is 2.45 PM, HDFC Standard life office is at least 35 minutes away. They are open only till 3.30 PM. We are not sure we'll make it there on time. I call their number to ask if the branch is open tomorrow. Person: Sorry, I can't give you the information today, you will have to call and check tomorrow. (To repeat: HDFC Standard Life's call centre cannot tell you if a branch is working or not the following day)
In all, we have spent many hours over many months trying to get this money in a case the bank officials themselves say "should not be complicated". What is worse is for my 20-year-old daughter to relive the trauma of losing her father each time we have to go and explain the case. Just today, we had to speak to three different people and start the story from the beginning. This is not just the bank's inefficiency, it is its utter callousness. (My husband also had money in Indusind Bank. It took one visit and two weeks for that to be transferred).
The other, more important point, is that I have a job, we have the money to continue to pay for our needs without having to immediately access these funds. But I am certain that is not the case for many others. What about them? How can this be the system of a bank whose customers are dependent on it for giving them access to their own money?! It beggars belief.
@HDFC_Bank@HDFCBank_Cares
92 decks on 2024 trends — from Accenture, BlackRock, EY, Expedia, Fidelity, Gartner, Goldman, Mercer, WGSN etc.
via Dan Barker ht MacFarland https://t.co/7J0yzViPKG
While we all focussed on the fastest 100 and 50 and the mammoth score, it took Nepal's coach to post about Mongolia's many victories in the game... hats off to Monty desai
Mongolia, in their second opportunity in #AsianGames2023, batted full 20 overs #Respect 🙌🏾 👏🏾 A team, which I was told to have just come together to learn the basics 3 months ago have done well for themselves. It takes courage to walk into the unknowns and compete. Davaasuren Jamyansuren, for me, is a definition of talent. The way he fought in a game against us, and today, the way he progressed to face more number of deliveries while batting and also improved his scoring shots is an example of learning aptitude! Not what always pleases your eyes, but more the abilities within to fight, his heart, mind fully focused, his zeal ! Against us in the previous game, he had pulled his calf muscle and was given a choice to return back but he decided to bat on and played out few well directed Yorkers to him. #Brave 👏🏾 #hearttoheart #worldcricket
We were in Tikuri village for 5 hours today & didn't't get a single drop of water to drink.
Asking for water meant that a woman would walk in the scorching afternoon sun for an hour.
Their house of 6 had half a bucket of water with twigs & dust in it, reserved for the children.