Updated December 2025

LIQUID LABOR

The Embodied Productivity Race of the 2020s

My Research Essays on the U.S.–China Contest for the Time Bank of Machines


II. THE GREAT STAGNATION

Why Apollo Failed to Sustain: The Retreat from Atoms to Bits

Date: December 2025 · From: The Liquid Labor Research Group

Introduction: The Post-Apollo Hangover

The "Post-Apollo Hangover" is a risk predicted by the model, and the phenomenon is called The Great Stagnation (coined by Tyler Cowen and Peter Thiel). It describes how we "solved 'atoms'" in the 1960s (rockets, nuclear, jet engines) but then "retreated to 'bits'" (PCs, internet, apps) because manipulating atoms became too expensive.

Hedonist-driven demand is "Corrupted Demand." It is demand for comfort, not capacity.

Here is the mathematical proof of why the "Time Bank" (Liquid Labor) solves the stagnation trap that killed the Space Age.

I. The Trap: Why Apollo Failed to Sustain

In the 20th Century, we tried to fund the Architect's dreams (Space) using human labor.

The Constraint: Human Labor is Expensive and Inflationary

The Cycle: The Hedonist demanded better living standards (suburbs, cars, AC), which caused wages to rise.

The Cost Disease

As wages rose, the cost of "high-entropy" projects (NASA, Nuclear) skyrocketed. This is Baumol's Cost Disease. It became too expensive to build rockets because engineers and janitors at NASA needed competitive wages.

Result: The Architect was starved. We retreated to "Bits" (software) because software has zero marginal cost and isn't subject to the same energy/labor inflation as steel. This is the "lost progress" you correctly identified.

II. The "Liquid Labor" Solution: Decoupling

In a Liquid Labor economy, we break Baumol's Cost Disease.

The Time Bank creates a Dual-Track Economy:

  1. The Hedonic Track (Consumer): Robots build the VR pods, the fashion, and the luxury goods. The Hedonist pays for this with their "Basic Dividend" or status income.
  2. The Architect Track (Civilization): Robots also build the starships.

Why This Time is Different

Because the supply of labor is Perfectly Elastic (we can print more robots), the Hedonist's demand for luxury does not bid up the price of labor for the Architect.

  • 1970s (Human Labor): If you hire 100,000 people to build Disney World, you have fewer people to build Apollo. Wages go up. Apollo gets cancelled.
  • 2030s (Liquid Labor): If the Hedonist wants a Disney World, we print 100,000 robots. If the Architect wants a Moon Base, we print another 100,000 robots. The marginal cost of the second fleet is just energy.

III. The Mathematical Guardrail: The "Corruption" Variable

To prevent the 'Corrupted Demand' you fear (where we just build endless digital distractions and ignore space), we introduce a policy variable: The Entropy Tax (τe).

We define 'Corrupted Demand' as energy spent on Low-Entropy Reversal (trivialities) vs. High-Entropy Reversal (civilizational survival).

The Policy Rule:

CostHedonist=Energy Cost×(1+τe)\text{Cost}_{Hedonist} = \text{Energy Cost} \times (1 + \tau_e)
CostArchitect=Energy Cost×(1Subsidy)\text{Cost}_{Architect} = \text{Energy Cost} \times (1 - \text{Subsidy})

Mechanism: The Hedonist pays a surcharge on their massive energy consumption (the "VR Tax"). That surcharge directly subsidizes the "CapEx" of the Architect's fusion plants and rockets.

The Result: The Hedonist's "corrupted" desire for a massive energy grid inadvertently funds the infrastructure that the Architect uses to leave the planet.

IV. Summary Answer

For the last 50 years of stagnation happened because Human Labor was too scarce to support both Hedonism (Consumption) and Architecture (Space). We chose consumption.

Liquid Labor solves this by removing the scarcity of work.

We let the Hedonist have their 'corrupted demand.' We let them demand a 100 Terawatt grid for their trivial amusements. The Architect then hijacks that 100 Terawatt grid-which the Hedonist paid for to launch the ships.

The Strategy: Use the Hedonist's greed to build the Architect's ladder.