AI‑driven demand‑collapse scenario

A policy‑relevant scenario in which rapid, economy‑wide substitution of labor by AI (especially in high‑wage white‑collar sectors) triggers a negative feedback loop: displaced workers cut spending, revenues fall, firms enact further cuts, and financial markets and credit conditions amplify the downturn. — If plausible, this mechanism reframes AI policy from 'labor augmentation' to macroeconomic stability and requires coordinated industrial, fiscal and labor policy responses.