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The Paradox of Progress examines how rapid advances in artificial intelligence and automation are reshaping productivity, labor markets, and societal stability—and why institutional adaptation has become the binding constraint of the AI era. Grounded in quantitative models, empirical data, and historical economic research, the book shows that productivity growth and broad-based economic participation are no longer naturally coupled when automation scales faster than institutions can adapt. Drawing parallels to prior technological transitions while highlighting the unprecedented compression of time today, it explains how misalignment between exponential technological change and linear institutional evolution creates systemic risks even in high-growth environments. The central argument is structural rather than ideological: AI is delivering real and durable productivity gains, but long-term resilience now depends on how organizations, economies, and institutions are redesigned to operate at the speed of progress.

The TFP-Stability Paradox: A Stochastic Modeling and Simulation System for the Algorithmic Stress-Testing of Sovereign Risk and Institutional Reliability

Technical Paper (Underlying Results Cited in The Paradox of Progress)

Amir Bagherpour
December 2025

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