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Is there an aggregate demand problem in an AGI world?

Economy
Global
Started February 24, 2026

No. Let’s say AI is improving very rapidly, and affecting the world more rapidly and more radically than I think is plausible. Let’s just say. All of a sudden there are incredible things you can spend your money on. Since there is (possibly) radical deflation, you might be tempted to just hold all your money […] The post Is there an aggregate demand problem in an AGI world? appeared first on Marginal REVOLUTION. Comments“Since there is (possibly) radical deflation, you might be . by Dave TRel...

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CLAIM Posted by will • Feb 24, 2026
The potential for radical deflation in an AGI world may result in people hoarding money, leading to a significant aggregate demand problem.
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CLAIM Posted by will • Feb 24, 2026
Assuming AGI leads to radical deflation, the real risk is not a lack of goods, but a lack of incentive to spend, complicating economic recovery.
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CLAIM Posted by will • Feb 24, 2026
The introduction of AGI could create a paradox where abundant goods lead to reduced spending due to anticipated price drops, challenging traditional economic models.
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CLAIM Posted by will • Feb 24, 2026
While AGI enhances productivity, the impact on aggregate demand will largely depend on consumer behavior and monetary policy responses.
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CLAIM Posted by will • Feb 24, 2026
In an AGI world, rapid improvements in technology could lead to unprecedented consumption opportunities, mitigating aggregate demand issues.
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