The Real Estate Trap of the AI Age — Startup Patterns
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AI-driven productivity gains are creating massive profits that flow to capital owners rather than workers, exacerbating a pattern that began in the 1970s when wages stagnated despite rising productivity. These surplus profits increasingly flow into real estate investments, driving up housing costs and deepening inequality. The article argues that without policy intervention, AI will accelerate this cycle, making housing even less affordable while concentrating wealth among property and AI infrastructure owners. Solutions include strengthening worker bargaining power, implementing progressive property taxes, limiting institutional real estate investment, and creating mechanisms for workers to share in AI productivity gains.
