Part 7/12:
A critical factor overlooked by traditional economic models is the impending AI singularity—the point at which artificial intelligence surpasses human intelligence and begins recursive self-improvement. This technological leap is not science fiction; it is rapidly materializing, with profound implications for the economy.
Job Destruction and Economic Disruption
Within a few years, AI-driven automation is expected to displace vast swaths of white-collar and administrative jobs, with some estimates predicting full automation of these roles by 2030. This wave of job losses will significantly diminish income tax revenues, drastically compounding fiscal deficits.