Is This the Last Window to Build Wealth?

[Onda]

The "permanent underclass" theory suggests that AI will soon automate most cognitive and physical labor, creating a stark, lasting divide between a small elite who own the AI and a large population with little economic value. As of early 2026, this fear has fueled intense FOMO (Fear Of Missing Out) in Silicon Valley, leading to a "get rich now" mentality before AI potentially displaces jobs and makes traditional labor—and perhaps money itself—worthless.

I am amazed at the amount of growth in my portfolio over the last four years, and this thought was already going through my mind. Lately, I keep seeing more and more articles on this subject, which makes it feel less like a private worry and more like a broader anxiety people are starting to articulate.

What do you think?

 

[Gumby]

People seem quite willing to help dig their own graves.

 

[MichaelB]

If people have no jobs and aren’t working where do they get the income needed to buy the stuff that makes the owner class wealthy?

The economy breaks down when employment falls below 50% of GDP. For the economy to work and the owner class to get rich, people need to be employed, have incomes and spend money.

IMO the “permanent underclass theory” isn’t a theory, it’s a fear.

 

[Onda]

If people have no jobs and aren’t working where do they get the income needed to buy the stuff that makes the owner class wealthy?

The economy breaks down when employment falls below 50% of GDP. For the economy to work and the owner class to get rich, people need to be employed, have incomes and spend money.

IMO the “permanent underclass theory” isn’t a theory, it’s a fear.

So the issue may not be “no one has income.” The issue is a permanently stratified society where most people have enough to consume, but not enough to accumulate serious wealth or move up. They simply receive a monthly check with no need to work.

An example of the wealthy class could be a family with $50 million in stocks, generating additional income from their investments.

How do you move in such a society from receiving a check to having $50 million? (Or just 5M-10M)

 

[Aerides]

Will AI upset the developer job market? Sure. But economies have had this same "It's all going to collapse" with every revolution, and people shift. Yes, individuals will suffer, but by and large, something else comes along.

(I do not care one whit about the multi-millionaire tech bro SV class and what happens to them).

 

[audreyh1]

If people have no jobs and aren’t working where do they get the income needed to buy the stuff that makes the owner class wealthy?

The economy breaks down when employment falls below 50% of GDP. For the economy to work and the owner class to get rich, people need to be employed, have incomes and spend money.

IMO the “permanent underclass theory” isn’t a theory, it’s a fear.

Exactly!

 

[ShokWaveRider]

Without the underclass, the owner class will not have anyone to pick and sell their food and other items requiring human intervention that they may desire.

 

[Onda]

So the issue may not be “no one has income.” or that absolutly no one has job or what effect this has on Sofware Developers. The issue is a permanently stratified society where most people have enough to consume, but not enough to accumulate serious wealth or move up. They simply may receive a monthly check with no need to work.

An example of the wealthy class could be a family with $50 million in stocks, generating additional income from their investments.

How do you move in such a society from receiving a check to having $50 million? (Or just 5M-10M)

 

[aja8888]

What do you think?

Who will fix my busted plumbing and replace my toilet? I'm moving to Kansas soon...who will load my moving van (and unload it)? And pack and unpack all the darn boxes? Come on man, be realistic.

 

[foxfirev5]

I believe that we don't know what we don't know. At my age I'm trying to concentrate on maximizing the immediate future and leave the speculation to others.

 

[Onda]

Who will fix my busted plumbing and replace my toilet? I'm moving to Kansas soon...who will load my moving van (and unload it)? And pack and unpack all the darn boxes? Come on man, be realistic.

Those jobs will still exist for a long time. The question is not whether any human work remains. The question is whether those jobs become the main fallback for people pushed out of higher-paying knowledge work.

The plumber may still have income, but he may not easily get from that income to $5-$10 million in productive assets. So I am not saying “nobody will work.” I am saying the path from ordinary work to serious wealth may become much narrower.

 

[Gumby]

Who will fix my busted plumbing and replace my toilet? I'm moving to Kansas soon...who will load my moving van (and unload it)? And pack and unpack all the darn boxes? Come on man, be realistic.

I suspect there will always be a need for hands-on workers, but if knowledge workers get tossed out of their spots by AI, then the competition for those manual labor jobs will be greater, which usually puts downward pressure on wages. In my own experience, it was my brain, not my brawn, that lifted me out of poverty into the top 5% or so. We already have a fairly large gap between the haves and have-nots in our society and I think Onda is correct to fear it will likely get worse.

 

[street]

If people have no jobs and aren’t working where do they get the income needed to buy the stuff that makes the owner class wealthy?

The economy breaks down when employment falls below 50% of GDP. For the economy to work and the owner class to get rich, people need to be employed, have incomes and spend money.

IMO the “permanent underclass theory” isn’t a theory, it’s a fear.

This is thinking as well.

 

[MichaelB]

Over the past 200 years we have enjoyed technological progress that led to a continued improvement in standard of living never before seen in history.

Why is this different and what would make this “permanent” in a way no other has been? Has progress come to an end?

 

[freedomatlast]

This reminds me of the times back in the 80's when the labor force and unions like the UAW were convinced all their jobs would be replaced by robots.

 

[COcheesehead]

Not my opinion, but Elon thinks…

Musk believes that because AI and robots will create a massive surplus of goods and services, a "universal income"—distinct from basic income—will be necessary and feasible.

 

[Gumby]

I don't think the argument is that AI (or other technological progress) will not improve life on the whole for humanity. Rather, the fear is that it will permanently cement the existing rift between capital and labor, such that no one in the proletariat will ever be able to move up. But then I could be interpreting Onda's point incorrectly.

 

[street]

I remember when automated reading tech come on the scene to read water, electric and gas meters. The industries and people doing those jobs all feared the firing and omitting those jobs. It create 3 times more jobs to take care of all the maintence, issues and just having that tech on board with these companies.

I believe instead of job disappearing it will create more jobs and that means different markets and will be a good thing for our economy and markets. My 2¢.

 

[MichaelB]

Not my opinion, but Elon thinks…

Musk believes that because AI and robots will create a massive surplus of goods and services, a "universal income"—distinct from basic income—will be necessary and feasible.

Once again, where does the money come from?

 

[COcheesehead]

Once again, where does the money come from?

A universal income to me means we’re all on welfare.

 

[MichaelB]

I don't think the argument is that AI (or other technological progress) will not improve life on the whole for humanity. Rather, the fear is that it will permanently cement the existing rift between capital and labor, such that no one in the proletariat will ever be able to move up. But then I could be interpreting Onda's point incorrectly.

I understand. When in history have things remained constant?

Aside from that, we have no documented history of a functioning economy where the share of labor is less than 50% of GDP. China is there now, and struggling. North Korea is there. Our standard of living is not sustainable at that level.

 

[MichaelB]

A universal income to me means we’re all on welfare.

Please follow that through and show a sustainable economic flow.

 

[Onda]

A universal income to me means we’re all on welfare.

What if it is $3,000 a month per family member?

 

[COcheesehead]

Please follow that through and show a sustainable economic flow.

A good is sold. Selling company pays a tax. Part of the tax goes to you and me. We buy a good. On and on.

 

[COcheesehead]

What if it is $3,000 a month per family member?

What if it’s $10,000 or a million?