The Dead Economy Theory

# Summary The article argues that massive investments in AI infrastructure (hundreds of billions to trillions of dollars) are only justified if AI systems can replace human labor at scale, making current AI company valuations dependent on widespread workforce displacement. As companies replace workers with AI to boost profits and stock prices, those unemployed workers will reduce spending, causing economic contraction and potentially creating a "dead economy" where AI systems generate output with no human consumers to sustain demand.