'Smarter supply, destroyed demand': the AI layoff-consumption spiral argument
rahul_rajendran01 · reddit · 2026-09-09
A Reddit post lays out a simple macro chain: a company uses AI to lay off 1,000 people → those people cut spending on coffee, clothes, subscriptions, travel → demand falls, other businesses cut costs and lay off more workers → the loop compounds. The author's core question: we're making supply smarter while destroying demand — who exactly are all these AI products being built for? They admit it may be oversimplified but argue it's the lived reality of the unemployed.
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