Instead of a universal productivity boom, AI will eliminate repetitive white-collar jobs. This will shrink the consumer base, reducing overall demand and creating a powerful deflationary force, further entrenching a feudal economic structure with fewer 'lords' and more 'serfs.'

Widespread AI-driven job loss will reduce consumer spending. In response, businesses will be forced to cut costs further by accelerating AI adoption, which in turn leads to more job losses and even lower consumption, creating a vicious cycle.

AI will inevitably cause mass, short-term job displacement. To prevent a depression from collapsed consumer spending, Universal Basic Income (UBI) is essential. It acts as a bridge, sustaining demand and allowing society to benefit from AI's productivity gains while new industries emerge.

A rapid, significant (e.g., 5%) spike in unemployment over a short period (e.g., 6 months) due to AI would trigger an immediate and massive political and economic response. This would be comparable in speed and scale to the multi-trillion dollar stimulus packages passed during the COVID-19 pandemic.

Faced with mass job loss from AI, governments are unlikely to seize assets from the wealthy. The politically easier path is to print massive amounts of money for social support, preserving the existing capital structure while devaluing the currency.

As companies use AI to do more with fewer people, productivity gains boost profits but don't create jobs at the same rate. This "ghost GDP" concentrates wealth among a few and risks a long-term decline in broad-based consumer spending, as the generated value isn't dispersed to human workers.

For current AI valuations to be realized, AI must deliver unprecedented efficiency, likely causing mass job displacement. This would disrupt the consumer economy that supports these companies, creating a fundamental contradiction where the condition for success undermines the system itself.

In a future where AI and robots create all wealth and concentrate it among a few owners, societal stability will be impossible. To prevent a violent revolution, a massive redistribution of wealth—akin to communism or UBI—will become a pragmatic necessity, even for those ideologically opposed to it.

The decline of white-collar jobs, which form the backbone of discretionary spending and credit markets, will create a contagion effect impacting every asset class worldwide, as the system was built on the assumption of their stability.