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Marginal Revolutionanalysis

Is there an aggregate demand problem in an AGI world?

Marginal Revolution
Tuesday, February 24, 2026 at 5:54 AM
~4 min read

Original Report

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...

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.

Glass House Analysis

This story reflects the interconnected nature of modern economic systems, where developments in one sector inevitably affect others. Understanding these connections is essential for grasping how policy decisions and market movements translate into real-world outcomes for families, workers, and communities. The economy is not an abstract system of numbers—it's the sum total of decisions about who works, who prospers, and who struggles.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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