The Risk of AI-Driven Layoffs: Why Rational Firms Automate Themselves into a Demand Crisis

Commentary on “The AI Layoff Trap” by Hemenway Falk & Tsoukalas (2026) This blog post is a commentary on the recent working paper “The AI Layoff Trap” by Brett Hemenway Falk and Gerry Tsoukalas.The paper makes a provocative and deeply…







