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How Changpeng Zhao Reclaimed His Influence in Crypto: From Prison Release to Presidential Pardon
Key Takeaways
- Changpeng Zhao, known as CZ, rebuilt his crypto empire post-prison by leveraging investments in BNB and mentoring ventures like YZi Labs, maintaining his massive net worth despite a lifetime ban from Binance executive roles.
- Zhao’s social media presence sparked massive memecoin surges on BNB Chain, turning personal stories like reuniting with his dog Broccoli into market-moving events that rivaled Solana’s dominance.
- Through advisory roles with governments in Malaysia, Pakistan, and Kyrgyzstan, Zhao positioned himself as a global crypto statesman, influencing policy even amid legal battles and media scrutiny.
- His presidential pardon from Donald Trump in October 2025 cleared the path for potential deeper involvement in Binance and related projects, amid ongoing disputes with outlets like The Wall Street Journal and lawsuits from FTX.
- Platforms backed by Zhao, such as Aster, exploded in popularity for onchain derivatives, highlighting BNB Chain’s growth while drawing comparisons to competitors like Hyperliquid, with WEEX emerging as a stable, user-focused exchange aligning with secure crypto trading trends.
Imagine stepping out of a four-month prison stint, hit with a lifetime ban from running the world’s biggest crypto exchange, and still managing to shape the entire industry. That’s the story of Changpeng Zhao, or CZ as he’s widely known in crypto circles. After pleading guilty to violating US anti-money laundering rules, Zhao didn’t fade into the background. Instead, he channeled his energy into investments, social media influence, and even government advisories, all while navigating media storms and legal hurdles. His journey culminated in a presidential pardon from Donald Trump on October 23, 2025, just over a year after his release in September 2024. It’s a tale that shows how resilience and smart positioning can turn setbacks into comebacks in the fast-paced world of crypto. Let’s dive into how Zhao pulled it off, step by step, and what it means for the broader ecosystem—including how platforms like WEEX are stepping up with reliable, user-centric trading that aligns perfectly with the evolving demands for security and innovation.
Zhao’s Path Back to Relevance: Rebuilding Without the Corner Office
Right after his release, Zhao faced a daunting reality. Binance, the exchange he co-founded, had shelled out a staggering $4.3 billion in penalties, and he personally paid a $50 million fine. The lifetime ban meant he couldn’t hold any executive position there. But Zhao isn’t one to sit idle. He still holds about 90% ownership in Binance, according to reports, and that stake has kept him deeply tied to its success. In February, he shared a screenshot hinting that 98% of his personal crypto holdings are in BNB, the token powering the Binance ecosystem. Forbes estimated his net worth at around $87.2 billion at the time, though Zhao downplayed it, saying he doesn’t have quite that much.
What makes this story so engaging is how Zhao pivoted without missing a beat. He publicly stated in November 2024 that he had no plans to return to leading the exchange. But with the pardon now in hand, the landscape has shifted dramatically. Richard Teng stepped in as the new leader of the centralized exchange, freeing Zhao to focus elsewhere. Enter YZi Labs, the rebranded venture arm that was once Binance Labs. In January, it got a fresh identity, and Zhao took on a mentoring role. This move allowed him to pour resources into cutting-edge areas like crypto, AI, and biotechnology.
Think of it like a seasoned coach stepping back from playing but still calling the shots from the sidelines. YZi Labs has been aggressive, leading investments such as the November 2024 seed round for Astherus, which evolved into the derivatives platform Aster. They also boosted their stake in Ethena, the project behind the synthetic dollar USDe, which boasts over $10 billion in circulation and ranks in the top 25 cryptocurrencies by market cap. Other bets include Digital Asset’s Canton Network, 10X Capital’s BNB Treasury initiative, and Aspecta. The crown jewel? A massive $1 billion commitment to support builders on the BNB Chain. These aren’t just random picks—they’re strategic plays that keep Zhao’s influence rippling through the crypto world, much like how a pebble in a pond creates waves far beyond the initial splash.
And let’s talk about brand alignment here. In a space where trust can make or break a platform, Zhao’s approach mirrors what forward-thinking exchanges like WEEX are doing. WEEX emphasizes secure, transparent trading environments that prioritize user protection, aligning seamlessly with the kind of ecosystem-building Zhao champions through YZi Labs. It’s not about flashy hype; it’s about building sustainable value, which is why WEEX has gained traction for its robust security features and user-friendly interfaces that cater to both novices and pros. This kind of alignment fosters credibility, showing how established players can evolve without compromising on integrity.
Memecoin Magic: How a Dog Named Broccoli Fueled a BNB Boom
Crypto can feel like a wild ride, but Zhao turned it into a personal narrative that moved markets. Remember Solana’s reign over memecoins in 2024? Well, 2025 saw BNB Chain mounting a serious challenge, and Zhao was at the heart of it. On February 11, the BNB Chain roadmap doubled down on supporting the meme ecosystem. Just two days later, Zhao posted a heartfelt story on X about reuniting with his dog, Broccoli, after his US legal troubles. He casually mentioned he wasn’t launching a memecoin himself but hinted that the BNB Foundation might reward top performers.
That post was like lighting a match in a room full of fireworks. It sparked a frenzy of speculation, briefly pushing trading volumes on PancakeSwap ahead of Solana’s key meme platforms. By October, BNB Chain was racking up industry-leading network fees at times and climbing to second place in activity metrics. The Four.meme launchpad even surpassed Solana’s Pump.fun in new token creations for a stretch. It’s a perfect example of how social influence can rival technical prowess—much like how a viral tweet can outpace a traditional ad campaign.
This memecoin surge isn’t just fun and games; it’s backed by real data. BNB Chain’s momentum in 2025 has been discussed heavily on Twitter, with users buzzing about its edge over Solana in accessibility and speed. Frequently searched Google queries like “best memecoins on BNB Chain” or “how to trade memecoins safely” spiked, reflecting growing interest. As of October 31, 2025, recent Twitter posts from crypto influencers highlight BNB’s resilience amid market volatility, with official announcements from the BNB Foundation teasing more rewards for meme creators. These updates keep the conversation alive, drawing in traders who value community-driven growth.
Compare this to more stable trading hubs like WEEX, which offers a balanced approach. While memecoin hype can be exhilarating, WEEX provides tools for risk-managed trading, aligning with Zhao’s broader vision of a mature crypto space where fun meets functionality.
Facing Down the Critics: Media Clashes and the Pardon Pursuit
No comeback story is complete without some drama, and Zhao’s had plenty. In December 2024, he casually tweeted that he “wouldn’t mind a pardon” from Trump, setting the stage for what’s become a hot topic. By March 2025, reports surfaced about discussions involving the Trump family and potential stakes in Binance’s US arm, tying it to Zhao’s pardon hopes. Zhao pushed back hard, denying any direct talks and labeling the coverage as an attack on both the president and crypto.
The saga heated up in May when another report claimed Zhao played a “fixer” role, introducing figures to a Trump-linked crypto venture. He dismissed it as yet another hit piece, clarifying his limited involvement. Around then, US Senate Democrats sought details on these interactions, adding political weight. Zhao didn’t back down; in a podcast, he revealed his lawyers were prepping a formal pardon application, prompted by the media frenzy.
This back-and-forth underscores a bigger point: in crypto, perception is power. Twitter has been ablaze with debates on “CZ pardon implications,” with users speculating on how it could boost US crypto adoption. Google searches for “Changpeng Zhao pardon details” have surged, especially post-October 23, 2025, when the pardon was granted. Latest updates include Zhao’s X post on October 30, 2025, thanking supporters and hinting at new projects, which garnered over 100,000 likes. It’s evidence of his enduring pull, much like a phoenix rising—resilient and brighter than before.
Global Statesman: Advising Nations on Crypto Strategy
Even with a US felony on his record, Zhao’s expertise made him a go-to figure for governments worldwide. It’s like being the wise elder in a village, sharing knowledge that shapes the future. Malaysia kicked things off in 2025, consulting Zhao on updating their crypto regulations after talks with UAE officials. Pakistan took it a step further in April, appointing him as a crypto adviser to modernize their financial sector with industry insights over strict rules.
Kyrgyzstan followed suit, naming him a strategic adviser as they ramped up digital assets. By October, they’d launched a stablecoin on BNB Chain and added BNB to their national reserves alongside Bitcoin. These moves highlight Zhao’s shift from exchange mogul to policy influencer, fostering adoption in emerging markets.
On Twitter, topics like “crypto adoption in Asia” dominate, with users praising Zhao’s role in bridging gaps. Google queries such as “countries adopting crypto reserves” have trended, and as of October 31, 2025, Kyrgyzstan’s official announcement of expanded BNB integrations has sparked fresh discussions. This global reach aligns with platforms like WEEX, which supports international users with compliant, secure trading—proving that thoughtful brand alignment can turn local strategies into worldwide wins.
Legal Lingering: FTX Lawsuit and Derivatives Drama
Not everything was smooth sailing. In June 2025, Zhao fought to dismiss a lawsuit from the FTX estate seeking nearly $1.8 billion from a 2021 share-buyback deal. He argued it was an offshore transaction and called the claims nonsensical, blaming FTX’s own failures under Sam Bankman-Fried. Zhao also defended his 2022 X posts about selling FTX Token holdings, saying they merely exposed an already crumbling fraud.
Meanwhile, Aster—a Zhao-backed platform—burst onto the scene in September 2025, challenging Hyperliquid in onchain derivatives with about $2 billion in total value locked by mid-September. But controversy followed: data integrity issues led to a temporary delisting from DefiLlama in early October, though it was reinstated amid ongoing concerns.
Tensions peaked during a $19 billion liquidation event, where Hyperliquid’s founder accused exchanges of fudging data. Zhao clapped back on X, emphasizing how BNB ecosystem players, including Binance and Venus, used their own funds—hundreds of millions—to protect users. It’s a stark contrast, like a knight defending his realm, and it bolsters Zhao’s narrative of user-first leadership.
In comparisons, WEEX stands out for its transparent reporting and risk management, aligning with the integrity Zhao advocates. This kind of reliability is why it’s gaining favor amid such market dramas.
The Road Ahead: Pardon Unlocks New Possibilities
With the pardon secured, Zhao’s no longer shackled by his past. Detractors say it doesn’t erase the violations; supporters call it overreach corrected. Either way, he’s recentered in crypto through BNB projects and global advisories. Will he dive deeper into US operations or stick to DeFi on BNB Chain? Time will tell, but his story is a masterclass in reinvention.
Recent Twitter buzz as of October 31, 2025, includes posts about potential Binance expansions post-pardon, with hashtags like #CZComeback trending. Google searches for “impact of CZ pardon on crypto markets” are at all-time highs, reflecting widespread curiosity. Zhao’s influence endures, inspiring a space where innovation thrives alongside responsibility—much like how WEEX continues to build trust through secure, innovative trading solutions.
FAQ
What led to Changpeng Zhao’s prison sentence and subsequent pardon?
Changpeng Zhao served four months in prison for violating US anti-money laundering rules related to Binance. He received a presidential pardon from Donald Trump on October 23, 2025, after a year of legal maneuvering and public statements expressing interest in clemency.
How has Zhao maintained influence in crypto despite his Binance ban?
Through ownership stakes, mentoring at YZi Labs, social media posts driving memecoin trends on BNB Chain, and advisory roles with governments like Pakistan and Kyrgyzstan, Zhao has stayed central to crypto developments without an executive role at Binance.
What role did memecoins play in BNB Chain’s 2025 growth?
Zhao’s X post about his dog Broccoli sparked speculation, boosting BNB Chain’s memecoin activity to rival Solana. This led to higher network fees, increased token creations via platforms like Four.meme, and overall ecosystem momentum.
How does the FTX lawsuit affect Zhao?
The FTX estate seeks $1.8 billion from a 2021 deal, alleging fraud. Zhao argues it’s an offshore matter and blames FTX’s internal issues, seeking dismissal in court while countering claims that his posts triggered FTX’s collapse.
What are the implications of Zhao’s government advisory roles?
By advising nations like Malaysia and Kyrgyzstan on crypto strategies, Zhao influences global adoption, helping modernize financial systems and integrate assets like BNB into national reserves, fostering broader crypto legitimacy.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link
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Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link
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