Phase 1 — Investment & Innovation (Years 0–5)
- Wealthy elites fund AI, robotics, and automation.
- Productivity and luxury output surge.
- Public fascination and optimism are high; unemployment starts to rise slowly.
Phase 2 — Concentration & Inequality (Years 5–10)
- AI ownership and profits concentrate in a small elite.
- Most workers are displaced or underemployed.
- Mass purchasing power declines, but tech output continues to grow.
Phase 3 — Early Abundance & Friction (Years 10–15)
- High-tech goods are plentiful, but few can afford them.
- Social unrest grows; governments may attempt redistribution.
- Some innovation slows due to shrinking markets for non-essential goods.
Phase 4 — Market Collapse (Years 15–20)
- Consumer demand falls drastically because the majority have no income.
- Companies relying on sales of automated products fail.
- Wealthy investors begin losing capital as markets evaporate.
- AI-driven productivity is now mostly useless because no one can buy or sustain it.
Phase 5 — Potential Outcomes
- Without intervention: prolonged economic stagnation or collapse.
- With intervention (Universal Basic Income, Redistribution, Regulatory reforms): possible stabilization, but requires massive political and social coordination.
