The Continuity Market: Value Formation in the PPP–GDP Split

Description

This working paper examines the structural divergence between GDP growth (nominal output and asset valuation) and lived purchasing power (PPP) under advanced automation. As productivity gains increasingly concentrate in capital returns while employment-based distribution weakens, societies experience erosion of social continuity in PPP space that is not captured by GDP-based valuation systems.

The paper introduces the concept of the continuity market: a secondary valuation layer that emerges when institutional systems measurably reduce systemic uncertainty in PPP space without commodifying participation. It shows how markets begin to reprice stability indirectly—through insurance, credit, labour, property, and municipal risk—before political consensus forms, and why premature individual-level access or conditioning would structurally destroy this mechanism.

The paper is released as part of a structured document set. Companion documents specify anti-capture enforcement architecture, boundary clarifications, and operational stress tests designed to prevent continuity from becoming a tradable asset while allowing markets to reprice reduced risk at aggregate level.