AI Layoff Trap

AI Layoff Trap Simulator

Tune the knobs and watch how the trap tightens or loosens. Every parameter changes the clock on the dashboard.

Adjust the Economy

Number of Companies50
Income Replacement0.3
Cost Savings per Job0.55
AI Integration Difficulty1.2
Local Spending Share0.85
Worker Salary ($K)45K
Number of Workers5000
Outside Demand ($B)2B
Current Adoption25.0%
Where Firms Head44.8%Competition pushes them here
Sustainable Rate0.0%Best for overall prosperity
Over-Automation Gap48.6%How much they will overdo it
Spending Lost Per Job$27KDemand destroyed per automated worker
Firms to Trigger Trap1.1Need more than 2 firms
Profit Now$-235937500At 25.0% adoption
Profit at Full Adoption$-1271784109At 44.8% adoption
Trap StatusTRAP ACTIVEFirms over-automating vs sustainable rate
Money Left on Table$1.6BProfit lost to over-automation
Spending Destroyed$3.0BDemand lost from excessive automation

Profit at Different Automation Levels

Each bar: green = what firms could earn (cooperative optimum), amber = what they actually earn at that adoption level. The peak shows the sustainable rate; the arrow shows where competition pushes them.

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Sustainable Actual Peak Competitive outcomeX-axis: Fraction of jobs automated

How the Numbers Work

Sustainable rate = (cost savings − spending loss) / friction = 0.0000
Competitive rate = (cost savings − spending loss / firms) / friction = 0.4484
Spending lost per job = local spending × (1 − income replacement) × wage = $27K
Over-automation gap = spending lost × (1 − 1/firms) / friction = 0.4859