kaal:claim:6421319-007

Price collapse under AI abundance is structurally different from cyclical deflation: conventional deflation reflects demand contraction or supply shocks inside scarcity frameworks, whereas abundance driven price implosion reflects production possibility frontiers shifting toward infinity.

Source quote, verbatim

Conventional deflation reflects demand contraction or supply shocks within scarcity frameworks. The price "implosion" that AI-driven production generates reflects production possibility frontiers shifting toward infinity.

From

Wulf A. Kaal, The Collapse of Scarcity Economics (2026), II.A. Structural Abundance vs. Cyclical Deflation, p. 7
https://ssrn.com/abstract=6421319 · source PDF

Cite as

Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319

Holds when

applies to cognitive and digital goods whose primary inputs become computationally post scarce

Classification

mechanismsupport: arguedeconomics

Related claims

extends kaal:claim:5886442-014 Contesting the continuity view, the author argues that AI2AI is not a case of technological progress shifting ...

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