Pluralistic: The (real) dead economy theory (17 Jun 2026) – Pluralistic: Daily links from Cory Doctorow

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The (real) dead economy theory: Vibes and memestocks, all the way down.

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The (real) dead economy theory (permalink)

Here's a fun fact about Elon Musk: in 2020, his (nominal) net worth was $20b, and today it's $1t (nominally). But that's not the fun fact; this is: everything he's done since 2020 was a flop.

As John Quiggin writes, the pre-2020 Musk was the Musk of Tesla, batteries and Starlink. The post-2020 Musk is the Musk of Starship, robotaxis, Cybertrucks and Twitter – a string of commercial flops and assets that literally exploded. I would add that post-2020 Musk created the world's hungriest money-furnace, an automated child-porn production tool called "XAI":

https://crookedtimber.org/2026/06/15/one-big-grift/

Quiggin declares that this is the era in which "financial markets fail in the task of valuing assets accurately," and "the institutional structures that are supposed to make them work have given up trying." Nor did this start with the Spacex IPO. As Quiggin writes, Bitcoin and other cryptos were once shunned by nominally sober financial institutions like Goldman Sachs, but today, not only do all the big banks offer crypto services, people have largely stopped calling it cryptocurrency because no one is even pretending that it's a form of money. It's a tradeable collectible, not even particularly useful for paying for crimes or laundering money.

Spacex is just a continuation of the logic of crypto, in which something is valuable because some people think other people will pay more for it in the future, and not because it does useful things:

https://johnquiggin.com/2018/02/09/bitcoin-kills-the-efficient-market-hypothesis/

That's the logic of the whole market today. AI – the world's money-losingest technology – attracts investment at the expense of everything else. When horrified NIH lifers begged the DOGE boys not to shut down long-running medical research projects, Musk's broccoli-haired brownshirts laughed in their faces, saying we don't need cancer research because "GAI" is almost here and it will cure cancer. You could hardly ask for a better example of investing in vibes over value than shutting down real cancer research to free up money for teaching more words to the word-guessing machine because it's about to become God and cure cancer.

Today, Goldman Sachs isn't merely all-in on crypto – it's all-in on the Spacex IPO. As Quiggin writes, the bank has signed off on Musk's claim that "Musk's ragbag of assets" will grow one hundredfold in the next 40 months.

Quiggin's short essay has been rolling around in my mind since I read it a couple days ago. Then, yesterday, I spotted this essay by Owen McGrann entitled "The Dead Economy Theory":

https://www.owenmcgrann.com/p/the-dead-economy-theory

The perfect name for this phenomenon! Or so I thought. Then I read McGrann's article, and discovered that it's yet another piece asking how the economy will work after AI takes all of our jobs because AI is absolutely going to do that and there's no point in even questioning whether that will happen.

Look, thought experiments about how to deal equitably with labor displacement in the face of automation are all well and good. I'm a science fiction writer, that stuff is my bread and butter.

But applying "dead economy theory" to the blithe acceptance of the claims of AI pitchmen is a terrible waste of a killer coinage. The true risk of AI to your job isn't: "an AI will do your job." It's: "an AI salesman will exploit your boss's infinite horniness for replacing mouthy workers with pliable machines to sell him a chatbot that can't do your job, and then your boss will fire you and replace you with that inept, defective chatbot."

By the same token: the real "dead economy" risk isn't that all the productive labor will be done by chatbots owned by a habitual liar and eminently guillotineable billionaire like Sam Altman. The actual dead economy risk is that our institutions and markets will continue to move capital from productive activity into memestocks, vibes, and...