The real constraint isn’t the technology.
It’s whether ordinary people’s purchasing power keeps up.
If things get cheaper but people have less money and less confidence to spend, you still get destructive competition.
Most people think AI ends in deflation.
I see it differently:
Construction phase → inflation in core resources (power, copper, steel, chips).
Application phase → mainly labor deflation. AI’s most immediate effect is replacing people, not making physical goods cheaper
beyond the wage component.
So you can get resource inflation upstream + labor deflation downstream, with overcapacity in between.
China already ran a version of this with its manufacturing boom. The global AI buildout risks a larger replay.
2022.10.10 Research Report《Hao Hong: Saving Hong Kong》
“HK is truly madly deeply oversold. There is a trade here for the brave.” (with PDF links)
https://t.co/rRsGpcIzQY