The AI Layoff Trap

A new paper by two economists, titled 'The AI Layoff Trap,' argues that firms will adopt labor-saving AI even when it destroys the consumer demand they depend on, because each firm captures the full c…

A new paper, 'The AI Layoff Trap,' argues that businesses face an automation arms race that will eventually destroy their customer base, and proposes a Pigouvian tax on automation. However, the author…