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 ·
https://t.co/4m8E9jQNYm
I’m sorry, but I just can’t stand it anymore.
This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
Shame on those who voted for it: you know you did wrong. You know it.
🚨 BREAKING: #Ripple accepts SEC's settlement offer! $XRP case officially wraps up May 19 ....this could be the moment the $XRP world’s been waiting for.
OPTIO is helping HolyDeeds & the Vatican save Christian history by putting holy art & objects on the internet forever
So they can never be lost. Broken. Or taken away
This is how you protect faith for the next 1000 years
This is how you build something that lasts beyond Sunday
Don't you see what's happening right in front of your eyes?
The elite, including Saudi Prince Mohammed bin Salman, Donald Trump, and Sam Altman, are preparing for the geophysical event since 2016.
Although Sam Altman distanced himself from Saudi Arabia and Mohammed bin Salman in 2018 over the Khashoggi case, he is in Riyadh today as if nothing had happened.
People need to open their eyes! (1/7)🧵
Nuestro agradecimiento a Casco Development por su valioso apoyo a ETH Canal 2025. 🙏 ¡Estamos emocionados de tenerlos a bordo! ¿Quieres un partner confiable para tu desarrollo? Descubre cómo su experiencia en desarrollo puede hacer realidad tu visión en https://t.co/vsq679Vh3Z
Your pass to the blockchain future awaits! A key gathering for companies, startups, corporations, researchers, developers, students, and enthusiasts of Ethereum-based blockchain technologies. Connect, learn, and grow at the epicenter of Ethereum innovation.
Don't miss the opportunity to hear from a leader at the forefront of blockchain security. Marcos Allende López, CEO and Co-Founder of Blerify (specialists in quantum-resistant digital identity wallets and verifiable credentials), will be present at ETH Canal.
All the "experts" on financial media said tariffs would result in a stronger dollar and that a falling stock market and rising recession risks would lower long-term interest rates. I warned that the opposite would happen in both scenarios. They got both wrong, and I got both right. I am not pointing this out to brag, but to demonstrate that I understood what would happen and they didn't. Therefore, no one should put any stock in what those so-called experts have to say now. If you want to know what is going to happen, just follow my posts on X and listen to my podcast. Ignore everything you hear in the mainstream financial media. The experts they regularly showcase have no idea what they are talking about!
Excited to announce our 2024 Best of Award Winners! With over 130 nominations across 16 categories, we want to thank our Best of NFMLA Awards Jury for taking on the task of selecting winners from such a talented pool.
Check the full list of winners at https://t.co/Myg57EIuxS
All of the film industry that has come before us handed us this business, and it was ours to care for. If the studios and streamers that hold the purse strings that enable our work are set on destroying this incredible business that brings so much to society.
AI in the Arts is nothing less than a destruction of the 100-year old film industry.
We must fight, we must strike as WGA members, we must warn other artists—actors, crew members, and directors—about what is coming. Because this is our watch.