"Artificial intelligence is colliding with capitalism in a way the system can't absorb. That's what Mo Gawdat told Business Insider's Reem Makhoul over an interview in September. After decades working inside Big Tech, including senior leadership roles at Microsoft and Google X, Gawdat has come to believe that the economic model underpinning modern capitalism breaks once machines replace most of the human workforce."
""The very base of capitalism, which is labor arbitrage - to hire you for a dollar and then sell what you make for two - is going to disappear," he told Business Insider. In Gawdat's view, AI isn't just automating tasks. It's removing the need for human labor and, eventually, human decision-making at scale. When that happens, wages, jobs, and consumption - the pillars that keep capitalism running - start to fall apart, he said."
Artificial intelligence is colliding with capitalism in a way the system cannot absorb. The economic model that relies on labor arbitrage—paying workers less than the value they produce and selling output for more—breaks when machines replace most human work. AI reduces production costs toward zero and can remove the need for human decision-making at scale. Falling wages and mass job losses will erode consumption, undermining pricing, profit, and scarcity dynamics that sustain markets. Widespread displacement across sectors will force economic restructuring and consideration of policies such as guaranteed income and stronger social safety nets.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]