I have an economic theory.
Consider the 2008 crisis. It was caused by, firstly, people investing into mortgage backed securities, and secondly, the actual value of said securities -- the humble mortgage, beginning to fail. Simply put, a small part of the mortgages could no longer be paid, in turn failing the securities.
The three horsemen of the apocalypse
- Mechanisation: For example, in agriculture, already tractors are capable of doing a significant part of the work. This will continue to grow, until farming is fully automated and there are no farmers left, except for hobbyists.
- Replacement by AI: Already, Claude Code is capable of doing a significant portion of software development. This might not even be a category on its own, it could perfectly well be a simple part of Mechanisation, except that it is only just invented.
- Management: As there is less work done, even while there are still mouths to feed, capitalism once more finds a way -- large glass towers in business districts. Have you ever wondered, what those people actually do? I am certain there is no actual work done under the flag of business. All these jobs do is taking part in the giant water park -- one can take the slide over and over, but there isn't any water magically generated. The water (work) comes from the tap (workers) into the waterpark (business). A small portion of the water is taken home with the kids playing in the park (businesspeople), the rest is recycled. It stays in the waterpark, until it is taken out.
Now, I urge you to question, what is money? Is it a joke? Is it a universal truth, created
by God himself? Is it a platypus? It's Perry The Platypus! If you think about it, money
is basically a work-backed-security, only it isn't secure, and the work behind it is
slowly falling apart.
But hey,
that's just a theory. We'll see what the future brings, after all, it is a foreign land.