Researchers Just Mathematically Proved That AI Layoffs Will Destroy The Economy — “The AI Layoff Trap”

Every company replacing workers with AI is also firing its own customers. Every laid-off employee used to spend money. When enough people lose their jobs.. Nobody can afford to buy anything. And the companies that fired everyone go bankrupt, selling products to an economy with no purchasing power.

“The AI Layoff Trap.” And every CEO already knows it. But none of them can stop. So every company automates. Knowing it's collectively suicidal. Because the alternative is dying alone while everyone else survives.

It's a Prisoner's Dilemma. And the researchers proved it mathematically.

This isn't a transfer from workers to company owners. Both sides lose. Workers lose their income. Companies lose their customers. It's a deadweight loss that harms everyone. And no market force can break the cycle.