Lesson 9: The Self-Reinforcing Loop

Last updated: 2026-04-25

Each individual decision to use a cheaper machine instead of a human is perfectly rational. Add them up across a whole economy, however, and you can get a contraction that no single actor wanted. This is the key macro risk of an automation wave.

Lesson 9: The Self-Reinforcing Loop

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When sensible choices add up badly

12 min

Pause and Think

Practice Question

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