Part 5/13:
Unprecedented Output with Fewer Workers: AGI robots and software can do the work of dozens or hundreds of humans. Industries like software, finance, research, and creative endeavors could see outputs magnify while employment shrinks dramatically.
Demand Dynamics Shift: Normally, higher productivity leads to lower prices and saves costs, which can dampen inflation. But if productivity skyrockets while demand doesn't proportionally increase, the net effect could be disinflation or deflation—prices stagnate or fall even as output rises.