Marc Andreessen, a major tech investor and cofounder of venture capital firm Andreessen Horowitz, believes AI will drastically reshape the economy by crashing wages while also driving down the cost of goods and services.
The Promise of a Consumer Utopia
In a recent tweet, Andreessen claimed that the fall in human wages due to AI is not only logical but necessary. “A world in which human wages crash from AI – logically, necessarily – is a world in which productivity growth goes through the roof, and prices for goods and services crash to near zero,” he wrote. “Consumer cornucopia. Everything you need and want for pennies.”
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As Futurism reports, this follows a well-worn Silicon Valley belief that technological progress inevitably results in widespread prosperity. The idea is that, as AI boosts productivity to unprecedented levels, prices will plummet, making life more affordable even if people are earning far less. However, this assumes that people will still have enough income to participate in this supposed economic utopia.
The Ruthless Logic of Silicon Valley
Andreessen's vision highlights how many tech leaders see the future: temporary economic struggles are just part of progress. However, his comments also suggest that these investors care more about changing things quickly than about workers losing their jobs.
For instance, while some AI proponents advocate for universal basic income (UBI) as a safety net for displaced workers, Andreessen is staunchly against it, comparing it in his infamous “The Techno-Optimist Manifesto” to turning people into “zoo animals.” Instead of offering solutions to mitigate AI's impact, he appears to view the collapse of traditional jobs as an unavoidable consequence of progress.
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A Broader Pattern of Disdain for Workers
Andreessen's rhetoric isn’t an isolated case. Elon Musk shares a similar philosophy and commented in November that his DOGE commission's work would "necessarily involve some temporary hardship." Oracle cofounder Larry Ellison supports AI being used for government surveillance, saying it will make sure “citizens will be on their best behavior.”
Andreessen has also expressed deep suspicion toward the workers inside his companies. In a recent interview with NYT’s Ross Douthat, he claimed that elite institutions are producing “America-hating communists” who infiltrate his firms and actively work to destroy them from the inside. He views these people as “professional activists” who undermine companies rather than help them, strengthening his argument for using AI to replace human labor.
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The Future of AI and the Economy
Andreessen and other Silicon Valley elites continue to push the narrative that AI's disruptive potential is an unavoidable step toward a better future. However, a big part of their worldview is predicated on the idea that people would adapt and that new opportunities will inevitably arise due to technological advancement.
For many workers, though, the promise of cheaper goods and services means little if they no longer have a steady income. The AI revolution may drive economic efficiency, but whether it results in a society that benefits everyone remains to be seen.
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