The 2028 Global Intelligence Crisis

Imagine a world where AI surpasses human intelligence, and the consequences are catastrophic.

TL;DR
• AI surpasses human intelligence, leading to catastrophic consequences.
• The economy is disrupted, and the mortgage market is at risk.
• Policymakers must address the structural displacement caused by AI.

Summary
The article discusses a potential future scenario where the increasing capabilities of AI lead to significant job displacement, particularly in white-collar sectors. By 2026, the unemployment rate surged to 10.2%, causing the market to sell off. The rapid advancement of AI led to a sharp decline in white-collar employment, with many workers being replaced by machines. This resulted in a negative feedback loop where companies laid off workers and used the savings to invest in more AI, further exacerbating job losses. The article highlights the potential risks of AI, including the displacement of workers, the widening of income inequality, and the potential for a mortgage crisis. The authors suggest that the government needs to take proactive measures to address these issues, such as implementing policies to support workers who have been displaced by AI and investing in education and retraining programs. The article concludes that the increasing capabilities of AI pose significant challenges to the economy and society, and that policymakers must act quickly to mitigate these risks.

The scenario described in the article is not a prediction, but rather a thought experiment to explore the potential consequences of AI-driven disruption. The authors emphasize that the purpose of the article is to encourage preparedness for potential left-tail risks as AI continues to advance.

Key points include:
• The rapid advancement of AI leads to significant job displacement in white-collar sectors.
• The negative feedback loop of AI-driven job displacement and investment in more AI exacerbates economic instability.
• The mortgage market is potentially at risk due to the displacement of high-income earners.
• Policymakers need to take proactive measures to address the challenges posed by AI, including supporting workers who have been displaced and investing in education and retraining programs.

The article provides a detailed analysis of the potential consequences of AI-driven disruption and highlights the need for policymakers to take a proactive approach to addressing these challenges. It emphasizes that the purpose of the article is to encourage preparedness for potential left-tail risks as AI continues to advance.

The future of our economy and society depends on our ability to adapt to the changing landscape of AI.