So a firm lays off more people and becomes more profitable. It then has two choices: pay out the profits or reinvest.
Reinvest into what? Hopefully value creating projects. Do these projects fall out of thin air? Lmao nope. Economists tend to model a whole bunch and get rid of important details like this. Value creating projects are not easy to conjure up.
And then you get people claiming “the llm will figure out the next project” lmao what? That’s science fiction. If that were to exist the entire economy should be nationalised.
The Job of the engineer is to be really good with the tech not business.