| Naum said: So lets say they increases the AI uses all over the world and millions upon millions will lose their jobs.. who are going to buy the stuff that they use AI to build/create when no one have money anymore?? |
The wealthy will sell to the wealthy. They're going to have all the money, anyway.
Rather than prices dropping to account for those with proportionally shrinking income, we're going to see prices climb as the marketing target shifts to the well-off. We're already watching the percentage of consumer spending generated by the higher tax brackets grow compared to previous years, which means the appeal of selling to the lower brackets is fading.
The philosophy seems to be that raising margins and cutting volume is a better long-term strategy for a world where AI is doing much of the work.
An example is Microsoft raising Xbox margins to 30%. They don't care if they lose customers as long as they have plenty of whales to hunt and well-off consumers aren't going to care if other people are squeezed out. If 30% succeeds, count on that number going up again. Microsoft is absolutely positioning themselves for a future where they can sell their products to rich people and corporations even if the bottom falls out. Other industries are on the same path.
As wealth disparity climbs, prices and consumer debt are going to climb along with it and the lower classes will gradually be abandoned by the major brands and conglomerates.
