a16z GP: the 'permanent underclass' is fantasy, AI job-loss hasn't played out
lennysan · x · 2026-09-06
Lenny's Newsletter podcast hosted a16z General Partner @illscience, who argues the "permanent underclass" narrative is a dark fantasy Silicon Valley keeps telling itself:
- The job-loss apocalypse hasn't materialized: by almost every measure things have never been better. Radiologists were predicted to be "cooked" by AI 20 years ago and demand keeps rising; open engineering roles are at all-time highs.
- Market structure differs from mobile: instead of winner-take-all, every layer of the AI stack has 20 strong competitors.
- Other topics: keeping up with AI without being chronically online, the "/loop make me happier" opportunity, companies becoming series of loops, moats being discovered rather than designed, and the "Birkin bag version" of your product.
A substantive contrarian take on AI's employment impact from a major industry figure.
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