Thursday, November 20, 2025

The Deflationary Economy -- Why Abundance Is Closer Than We Think


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For most people around the world, the future feels anything but abundant.
When asked about their top concerns, the answers are painfully consistent:
rising cost of living, fear of unemployment, and widening inequality.
This isn’t theory. This is what people in dozens of countries are expressing right now .

Yet—beneath that anxiety—another story is unfolding.
One that almost no political leader, economist, or regulator is prepared for.

A story of hyper-deflation, economic re-architecture, and an eventual age of abundance fueled by AI.

Let’s break it down.


The Invisible Revolution: 40X Deflation in Intelligence

For the first time in history, the cost of intelligence—the most valuable economic resource in existence—is collapsing.

Inside the transcript is a mind-bending observation:
AI capability per dollar is improving at 40× year-over-year. Not 40%. Not 4×. Forty times.

To put that into perspective:

  • If car efficiency improved at the same rate, cars would go faster than the speed of light within a decade.

  • If manufacturing productivity improved at that rate, a factory would output an entire year’s worth of goods in a weekend.

This isn’t Moore’s Law.
This is orders of magnitude beyond Moore’s Law.

And when intelligence becomes nearly free, everything it touches begins collapsing in cost too:

  • Software

  • Legal work

  • Healthcare diagnostics

  • Education

  • Energy optimization

  • Supply chain planning

  • Scientific R&D

  • Robotics and automation

We are watching, in real time, the deflation of knowledge work, and soon, physical labor through autonomous robots and drones.


When the Core Keeps Shrinking, Everything Else Must Follow

As one expert in the podcast puts it, AI is becoming the “nuclear core” of deflation.
Once intelligence becomes cheap, the price of everything built with intelligence must fall.

This super-deflation doesn’t stay confined to the digital world.

It radiates into the physical world.

Example: The Cost of AI Training Itself

A Chinese lab recently trained a frontier-grade model for about $4.6 million, up to 40× cheaper than what leading US labs paid for comparable models just 18–24 months earlier.
This destroys the old narrative that only trillion-dollar companies can build transformative models and accelerates global participation.

When intelligence becomes a commodity, innovation becomes a commodity.

When innovation becomes a commodity, abundance becomes possible.


But the Present Still Hurts

This is where the paradox emerges.

Globally, people still feel like everything is getting more expensive, not less.
The podcast illustrates this painfully:

  • A family in Iran spends one-third of their income just on an iPhone and data plan—because it’s the only way to access money and information.

  • That money flows straight into tech hubs like Silicon Valley and Boston, widening global inequality.

  • Many fear that AI will accelerate unemployment faster than new sectors can absorb workers.

This is the tension of our era:

The long-term trajectory is abundance.
But the short-term reality is dislocation, fear, and inequality.

We’re in the turbulence before takeoff.


Why Jobs Feel At Risk—and Why They Are

The podcast acknowledges what most politicians won’t say out loud:

  • AI will replace jobs.

  • Traditional education pipelines no longer map to future work.

  • Entire sectors will compress into autonomous operations.

We are transitioning from a world where people had to work to live,
to one where people will work because they want to create, not because they must survive.

This transition period—the next 2 to 7 years—is where the risk is highest.
Social cohesion is fragile. Trust is low. Narratives of fear spread faster than narratives of hope.

If society doesn’t believe in a better future, it won’t build one.


What a Deflationary World Can Actually Look Like

Let’s imagine the logical outcome of a 40× deflation curve sustained across industries.

1. Healthcare Costs Collapse

AI diagnosis becomes near-free.
AI-guided local clinics replace expensive hospitals for 80% of care.
Drug discovery compresses from years to days.

2. Education Becomes Universal

AI tutors provide personalized, mastery-based education to every child, in every language, at near-zero cost.

3. Energy Expands Massively

Training AI models accelerates investment in nuclear and solar.
Energy becomes cheaper, cleaner, and more abundant.

4. Food Production becomes near-automatic

AI-guided robotics replace labor across agriculture and logistics.

5. Autonomous robots redefine labor

Everything from construction to home cleaning to elder care becomes robot-assisted, predictable, and inexpensive.

This is not utopian fantasy—these technologies already exist in early form.

The podcast repeatedly states:

The future is abundant. It’s just not evenly distributed yet.


The Real Challenge: Bridging the Transition

As the podcast points out, the real danger isn’t AI turning evil—it’s people losing faith in a hopeful future.

If fear dominates, society will:

  • Block innovation

  • Resist automation

  • Fight technology instead of using it

  • Fuel populism, extremism, and narratives of collapse

  • Trigger economic stagnation during the most transformative moment in history

This is why leaders are asking:

How do we help people believe in a hopeful and compelling future?

Because belief drives action.
Action drives innovation.
Innovation drives abundance.


The Path Forward: Toward a Positive Deflationary Future

The podcast's experts outline what must happen next:

1. New narratives of abundance

Positive futures must be 10× louder than fear-based ones.
People are 10× more likely to believe negative stories.

2. Universal basic services (or income)

A transition safety net is essential, not optional.

3. Entrepreneurial activation

A global movement of builders must arise to solve cost of living, inequality, unemployment, and access to opportunity.

4. Benchmarks for societal progress

AI can’t optimize what we don’t measure.
We need metrics for cost of living, crime, education, health, and environmental resilience.

5. Global access to deflationary technologies

Cheap AI, cheap energy, cheap robotics—distributed everywhere, not just in wealthy nations.

This is the blueprint for a deflationary, abundant future.


Final Thoughts: We Are Entering the Most Important Transition in Economic History

We’re experiencing two realities at once:

  • The world feels expensive, unstable, unequal, and dangerous.

  • Yet technology is rapidly making the core of the economy—intelligence—almost free.

Once intelligence becomes free, the cost of everything else follows it down.

It will be messy.
It will be turbulent.
But if we navigate the transition well, the outcome is extraordinary.

A world where:

  • Nobody is left behind

  • Cost of living is no longer a crisis

  • Human creativity becomes the new currency

  • Abundance is not a slogan but a lived reality

We just need to build the bridge—and tell the story—loud enough for the world to believe it.

Tags: Technology,Artificial Intelligence,Video,

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