Economist and former U.S. Labor Secretary Robert Reich argues in this July 10, 2026 column that the AI industry faces an unresolved economic paradox: roughly $3.2 trillion has flowed into AI deals in 2026 even as companies including Cisco, Block, Coinbase, HP, IBM and Salesforce cite AI for mass layoffs. He contends that if AI erodes middle-class incomes broadly, there will be too little consumer purchasing power left to buy the products AI companies are building, and he calls for redistribution measures such as wealth taxes, a sovereign wealth fund, or universal basic income to sustain demand.
