News Article
Total demand in the economy is determined by monetary policy, not technological change.
Two widely read essays in recent weeks have warned that artificial intelligence will do more than eliminate jobs. It will, we are told, wreck the economy by destroying economic demand.
“The 2028 Global Intelligence Crisis,” published by Citrini Research, envisages AI replacing workers across sectors, slashing wage income, gutting consumer spending, and triggering a downward spiral of weak demand and rising unemployment. Another essay, Matt Shumer’s “Something Big Is Happening,” argues that AI’s advance could devastate white-collar employment and leave the broader economy reeling without the consumption it funds.
It’s an arresting narrative. It’s also wrong.
