The Investor Lab How AI Will Change Your Economic Future
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May 31, 2025 Explore the ground-shaking implications of AI on our economy. What happens when labor becomes obsolete? Delve into the ripple effects of AI-driven deflation and the shift toward a post-labor society. Discover the paradox of economic value as GDP loses relevance in this new landscape. With AI transforming education and real estate, learn strategies for thriving amidst these changes. It's not just about the future; it's about adapting now to avoid getting left behind.
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AI Drives Rapid Deflation
- AI accelerates deflation by driving prices down to marginal cost faster than ever before.
- This forces businesses to use AI or risk losing competitiveness, causing significant labor displacement.
GDP Breaks Without Labor Link
- When capital no longer needs labor, traditional GDP measurement breaks down due to disconnection from labor income.
- The key question becomes: how does labor gain access to capital in a post-labor economy?
Massive Job Displacement Ahead
- AI is expected to displace 30-50% of jobs globally within 3-5 years, which is rapid compared to historical job shifts.
- Unlike past technology waves, this displacement could create redundancy rather than just job changes.