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.
Rational behavior. At scale. Simultaneously. With no mechanism to stop it.
Two economists built the math. The math leads to one place.
Source: Falk & Tsoukalas · Wharton School + Boston University ·
Software changed my life. It took me from Colombia to coding for Ford, Toyota, and Tesla in the US. After graduating with a CS degree, I returned to LATAM 1.5 years ago.
Here's why our region is falling behind in tech👇
... y que teniendo todos tus datos no tengan un procedimiento MÍNIMO para comunicarse con el titular cuando hay una denuncia de un evidente fraude y suplantación, raya con la negligencia y la complicidad...
Aunque un poco absurdo, puedo entender eso. Entiendo que hay varios asuntos legales ahí... Pero pues, que @Bancolombia tenga todos tus datos y te bombardeen con publicidad hasta de perfumes, por todas partes, correo, SMS, pauta, llamadas....
En todo caso, sabiendo lo que va a pasar, me comuniqué con @Bancolombia. Me atendieron muy amables, todo muy bien, hasta que me explican que como no me han robado, no pueden hacer nada...
En este momento estoy teniendo una conversación con la persona que está suplantando a alguien con quien alguna vez estuve en un proyecto... Suplantada por el ladrón....
Perdí la plata... En todo caso, al final fui lo más estoico que pude e hice lo que se puede hacer en estos casos, congelaron la cuenta (en la que consigné) y puse el denuncio... Nada más bajo mi control...
Hace un par de meses, alguien con acceso a la cuenta de WP de una amiga, se hizo pasar por ella (Bastante bien por cierto), y terminé transfiriendo 1,6M a esta persona... Obvio era un fraude...
🚨ATENCIÓN: Los delincuentes están usando IA para estafar por WhatsApp.🤖 Pero no se preocupen, @PoliciaColombia tiene un sistema de denuncias... que es más inútil que un chocolate en el desierto. 🍫🏜️ Cree un modelo de IA para reportar. @FiscaliaCol 🤦♂️ https://t.co/cBiRc3kVdo <-