I call it the Abundance Trap: We are about to achieve post-scarcity in the realm of intelligence, and our scarcity-based economic system is going to process this abundance as poverty.
This disconnect is the first siren of a collapsing paradigm. We have built a civilization so perfectly backwards that our greatest achievement is becoming our extinction event.
Your job is hand copying manuscripts. The AI is the printing press.
Intelligence Theory, a physics of how information is processed to create value and persistence. Intelligent Economics is its first application.
We are headed for a socio-economic Singularity long before we reach a purely technological one. Our systems of money, work, and meaning will shatter under the strain of near infinite productivity.
We are the bridge generation, blessed and cursed to live between worlds.
The old economists had a phrase: "In the long run, we're all dead." Keynes wrote that in 1923. He was wrong. In the long run, we're all alive, but economically irrelevant. Unless we build an economy where relevance is not economic.
For ten millennia, the engine of civilization ran on a simple, brutal logic: control the land, control the world.
This was the age of Land Dominance.
controlling the flow of goods mattered more than controlling the land that produced them.
The source of value had shifted from what you owned to what you could organize. From acres to factories, from soil to systems. The source of value had shifted from static assets to the dynamic flow of production.
This was the age of Capital Dominance.
Returns flowed not to those who worked hardest but to those who owned the means of production. And increasingly, the means of production were not factories but algorithms; the ability to write something once and have it create value in a self-reinforcing loop forever.
Capital itself began to dematerialize.
not a thing to be sold, not a process to be repeated, but the invisible structure of the network itself.
For all of human history, intelligence was a form of labor, scarce and locked inside human skulls. Now, for the first time, intelligence has become a form of capital. It can be copied infinitely. It improves recursively.
Our economic value was inextricably tied to our biology.
for a growing majority of cognitive tasks, the economic value of a human is not just lower than an AI. It is negative.
The honest answer is that we do not know. For the first time in economic history, we face an inversion with no obvious landing place. We are the generation that will live through the discontinuity. The last humans to remember when human thought had economic value. The first to discover what comes after.
The machines have not just taken our jobs. They have freed us from the lie that we are our jobs.
They are four different scientific measurements of a single, underlying reality: a complex system that has reached criticality and is poised for a phase transition. Critical Slowing Down: Interventions take years to work, if they work at all. Variance Explosion: Markets swing wildly on sentiment, ignoring fundamentals. State Flickering: Basic categories like "employee" or "money" cease to hold. Correlation Explosion: A single failure cascades globally in hours.
Factory School, a system designed not for education, but for compliance. Imported from Prussia in the 19th century to create obedient soldiers and workers, its hidden curriculum was the real one: sit still, follow bells, ask for permission, and accept that your worth can be reduced to a letter grade. It was the perfect training program for producing interchangeable human cogs for the corporate machine.
This is not a productivity gain. It is the annihilation of an entire economic category. Our system has gone from managing scarcity to confronting an abundance it cannot comprehend.
human worth must be permanently decoupled from economic production.
It keeps us focused on "job creation" when we should be focused on "purpose creation."
We measure destruction as production and wonder why society feels like it is falling apart while the numbers go up.
The moral fiction that justified inequality, "they earned it," becomes untenable when "earning" means inheriting shares in the company that owns the AI that does all the work.
Our system is designed to measure transactions involving scarce goods. It is therefore structurally blind to abundance. When something becomes abundant and free, our dashboard does not just fail to see its value; it registers its arrival as a negative event.
have created a world that is rich in transactions and impoverished in meaning.
Because the most interesting question in the universe is not "Why do things fall apart?" but "Why does anything exist at all?"
Any evolutionary process that selects for persistence is implicitly selecting for a single, underlying meta capability: the ability to create maximum predictive order for a minimum thermodynamic cost.
Intelligence Theory(IT): The economy, as a complex adaptive system, evolves to favor configurations that are most efficient at creating predictive models of their environment.
Value is not a pre-existing substance. It is a state of low entropy, a temporary victory against chaos, achieved by intelligent agents sorting their environment.
These three laws have direct, measurable expressions. The Law of Flow governs the health of a system's Material and Intelligence capitals. The Law of Openness is embodied in its Network capital. And the Law of Resilience is measured by its Diversity capital. To measure a system's adherence to these laws is to measure its vitality. This is the Tripod of Justice.
For a century, economics has been a science of inference. It has used the statistical tools of econometrics to deduce the workings of a vastly complex system from sparse, aggregated, and time lagged data. It has been a science of reading shadows on a cave wall.
The ultimate test of this framework is not its ability to fit historical data with ever more complex statistical fixes, but its ability to generate a simulated economy whose emergent properties and phase transitions authentically mirror our own.
The search for what to measure is the search for what matters. And what matters, it turns out, is not what moves through the system but what allows the system to persist. Not the water in the river, but the health of the riverbed that shapes its flow.
A flourishing human, like a flourishing civilization, does not maximize one of these capitals. They cultivate a balanced portfolio. They tend to their health and their environment(M). They never stop learning(I). They nurture deep relationships(N). And they stay open to new experiences and possibilities(D).
This reframes the foundational problem of microeconomics: the goal is not to satisfy infinite, unknowable wants, but to create the conditions for all agents to cultivate their own systemic vitality.
We must design systems that: Allow Gradient Flows to efficiently distribute scarce, rivalrous goods. Cultivate Circular Flows that share abundant, non-rivalrous goods for collective benefit. Consciously build Harmonic Flows, institutions of trust and transparency, that create a stable and just landscape for the other flows.
your economic fate is determined less by your individual attributes than by your position in the network. You are not a player on a level field. You are a node in a web, and the structure of that web matters more than anything you do within it.
Your economic position is determined less by your talent and more by your network position.
In 2003, Mark Zuckerberg was a Harvard sophomore with programming skills. Thousands could code better. But he was at Harvard, surrounded by the kids who would run the world. When he needed funding, Peter Thiel was two connections away. When he needed to scale, Silicon Valley was a zip code away.
The AI amplification is pouring rocket fuel on r while simultaneously collapsing the value of the labor that drives g.
The very qualities that make it a brilliant execution engine also make it a terrible discovery engine.
It is an architecture that combines the execution focus of the firm with the discovery power of the market. A community.
In a sufficiently connected system with a long enough time horizon, selfishness and altruism converge. Being generous becomes the most selfish possible strategy, not in some mystical sense, but in pure mathematical returns.
This is the logic of the symbiotic economy. It is a game where the winning move is to create value for the network. By increasing the health and intelligence of the system you inhabit, you increase your own chances of persistence and prosperity. The old game was about extracting value from the network. The new game is about generating value through the network.
Classical game theory failed because it assumed a world of disconnected transactions. To cooperate, its prisoners needed to trust each other, and trust was a variable it could not model.
The Fast Engine of the market is a system designed for maximum information exploration. It is a high entropy, high discovery process. The Slow Engine of institutions is a system designed for information exploitation and compression. It takes successful discoveries and hard codes them into low cost routines. A social norm is a highly compressed algorithm for successful behavior. It is a low entropy, low cost process. A living, intelligent economy must have both. The tension between them is the very definition of a learning system.
The Right to Capability(The Sovereign AI): Every human is endowed with a personal AI agent, cryptographically bound to you alone. This is the new property right for the 21st century.
"The real problem is not whether machines think but whether men do."
She has become the 'First Cause,' a ceremonial button-pusher for an engine that no longer needs a driver. This is the paradox of the Alignment Economy. It grants humans unprecedented power to act, but in doing so, it obliterates the very basis of human economic identity and authority.
The challenge of the 20th century was allocation, the management of scarce resources. The challenge of the 21st century is alignment, the management of abundant, autonomous intelligence.
This is why the "Objective Function" is the new scarcity. In a world of infinite capability, the only thing that is scarce, valuable, and existentially critical is a well defined, safe, and truly beneficial set of goals.
Humanity is the Alignment Layer. We are the source of the values, the ethics, the preferences, and the ultimate purpose that guides the machine's optimization. The "Arts of Being Human," our capacity for wisdom, taste, moral judgment, and love, are no longer "soft skills." They are the most crucial economic input in the entire system. We are the compass for the rocket ship.
Our strategy must be to create the Florences of the 21st century: small scale, protected, and intensely successful "Symbiotic Zones." These could be cities, companies, or digital networks that go "all in" on the symbiotic model. Their task is to become so demonstrably prosperous, resilient, and humanly fulfilling that their model becomes irresistible. The transition happens not through argument, but through overwhelming successful imitation.
The old world will not be defeated in a final battle. It will be made obsolete by a thousand interconnected, overwhelmingly successful prototypes of the new one.
The question is not "How can we save the world?" The question is "Where do we build the first seed?"
The nation state was the most successful political technology of the industrial age. It was a machine perfectly designed to forge a common identity, mobilize national resources, field armies, and manage industrial economies. For three hundred years, it was the most powerful actor on the world stage.
The forces of the Intelligence Inversion: global networks, dematerialized capital, and algorithmic power, are making the traditional state irrelevant. It is too slow, its jurisdiction too territorial, its tools too clumsy. It is a fortress designed for a world of invading armies, now besieged by forces that flow through its walls as if they were not there. Capital flees to the lowest tax jurisdiction at the speed of light. Information, true and false, ignores borders. The greatest challenges we face, from climate change to AI alignment, are fundamentally global, mocking the very idea of national solutions.
The traditional state had two primary functions: extraction and control.
The creation of money is now directly tethered to the efficient conversion of energy into intelligence.A Foundation Coin is a tokenized receipt for a unit of newly created, verifiably beneficial, low entropy order. It is, quite literally, crystallized intelligence.
History does not move forward in a uniform, global march. It leaps forward in small, super concentrated pockets of innovation that change the world by example.
Income: Money for survival. Identity: An answer to "What do you do?" Community: A tribe of colleagues. Purpose: A feeling of contribution, however illusory. Structure: A rhythm for your days.
The terror and the glory of the 21st century is that we are being liberated from the bullshit and forced to consciously design new, superior ways to build our identities, find our communities, create our purpose, and structure our lives.
The machines are taking our jobs. Thank God. Now we can get to our real work.
In the world after economics, the crucial question is not "What could I be producing?" but "What am I choosing to experience?"
A "post-digital materialism" focused on unique physical creation and experience, not mass consumption.
This is the domain of humanity. It is the semantic experience of being, the generation of subjective qualia, the assignment of meaning. Consciousness is the engine for answering "why." Why is this beautiful? Why is this just? Why does this matter?
This is the ultimate symbiosis: the fusion of AI's infinite computational power with humanity's finite but precious capacity for conscious experience.
Our purpose is no longer simply to survive or even to flourish individually. Our new, collective purpose is to become the most powerful engine of anti-entropy this planet has ever known.
Now that you do not have to do anything to survive, what will you choose to be?
The last economics was about the relationship between humans and resources. The new economics is about the relationship between humans and intelligence.