Beyond automating jobs, technology also impacts the labor supply. For young men, immersive video games have raised the utility of leisure, increasing the opportunity cost of taking low-skilled jobs and contributing to rising rates of non-work.
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Technological advancement creates a paradox: as machines automate more tasks, the economic value of uniquely human and social interaction increases. This structural shift helps explain why recent job growth is so concentrated in sectors like health, education, and hospitality.
When AI handles material needs, the traditional status game of wealth accumulation will lose its meaning. Humans will instead compete for status in non-productive domains like athletics, video games, or curating collections. These niche communities will become the new arenas for finding meaning and social hierarchy.
The sharp rise in teens feeling their lives are useless correlates directly with the smartphone era. Technology pulls them from productive activities into passive consumption, preventing the development of skills and a sense of purpose derived from contribution.
The optimistic view is that AI-driven free time will unlock mass creativity. However, historical precedents, like European nobility, show that only a tiny fraction of a leisure class pursues art or science. The vast majority defaults to gossip, lavish parties, and simple entertainment—a sobering prediction for the future.
Historically, unpartnered young men caused societal disruption. This is less prevalent today because digital media provides titrated doses of sexual satisfaction (porn), status-seeking (video games), and community (screens), pacifying them out of real-world disruptive action. This creates men who are "useless" rather than "dangerous."
Similar to the early internet, the time users spend on video games far outweighs the advertising dollars captured by the industry. This gap indicates a huge, untapped monetization opportunity where ad spend will eventually calibrate to match user attention, especially among young male demographics.
Contrary to fears of mass unemployment, AI will create massive deflationary pressure, making goods and services cheaper. This will allow people to support their lifestyles by working fewer hours and retiring earlier, leading to a labor shortage as new AI-driven industries simultaneously create new jobs.
Rather than causing mass unemployment, AI's productivity gains will lead to shorter work weeks and more leisure time. This shift creates new economic opportunities and jobs in sectors that cater to this expanded free time, like live events and hospitality, thus rebalancing the labor market.
The US economy is currently experiencing near-zero job growth despite typical 2% productivity gains. A significant increase in productivity driven by AI, without a corresponding surge in economic output, could paradoxically lead to outright job losses. This creates a scenario where positive productivity news could have negative employment consequences.
The Jevons Paradox observes that technologies increasing efficiency often boost consumption rather than reduce it. Applied to AI, this means while some jobs will be automated, the increased productivity will likely expand the scope and volume of work, creating new roles, much like typewriters ultimately increased secretarial work.
