Economist Alex Imas on what stays scarce after AI: Starbucks' automation U-turn offers a clue
_AustinCalvert_ · x · 2026-09-09
Economist Alex Imas published a long-form essay on the economics of structural change in an AI-abundant world.
- Core question: Any analysis of AI's economic impact must start with what remains scarce. Scarcity won't disappear—it changes form.
- Starbucks case: With a $112B market cap selling highly standardized, easily mechanized products, Starbucks tried cutting labor via automation—then reversed course. CEO Brian Niccol credits handwritten notes, ceramic cups, and better seating for customers who "sit and stay," and the company is hiring more baristas per store.
- Conjecture: Labor reallocates to sectors whose demand structure keeps it a meaningful share of the economy. Citing Girard, Augustine, and Rousseau, he argues that once base needs are met, preferences shift to inherently non-satiated comparative motives—status, exclusivity, social desirability—which machines can't fully substitute.
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