AI & Jobs Two Economists Just Proved CEOs Are Firing Their Own Customers. The Only Fix Is a Tax.
On April 29 BusinessToday surfaced a working paper by Wharton's Brett Hemenway Falk and Boston University's Gerry Tsoukalas. It models AI layoffs as a competitive Nash equilibrium where every CEO captures the cost savings privately and externalizes the demand loss. Wages, UBI, reskilling, equity participation — all fail. Only a Pigouvian automation tax fixes it.