It's a snake eating its own tail situation. Corpos need a wealthy consumer base in order to sell things and remain profitable. But to do that they have to coll

It's a snake eating its own tail situation. Corpos need a wealthy consumer base in order to sell things and remain profitable. But to do that they have to collectively pay laborers higher wages because laborers are basically the consumer. An individual corporation lowering labor costs in an economy of high wages benefits with greater profits so this strategy is logical. But if corporations act on this collectively they damage themselves. Most corporations, however are built upon short term gains. So they are unlikely to have the foresight to act wisely. It's the tragedy of the commons. The tragedy is this, when a corporation hires AI and lowers labor costs he is acting rationally according to a cost benefit analysis. But this logic applied collectively becomes suicidal. It is ultimately rational and logical action that damages us. That it the tragedy. Best solution I've heard of is ubi. But I'm not sure how it will play out in practice. I think government job creation might be better.