The hollow economy and the positive autophagic economy: the inverted rabbit hole

The Hollow Economy and Positive Autophagic Economy – The Inverted Rabbit Hole explores the paradox of modern growth within the ISHEA–Economy 5.0 framework. The paper defines Hollow Growth as a condition in which quantitative expansion (GDP, consumption, credit) occurs alongside a loss of structural density—declining real production, unstable employment, speculative innovation, and social weakening.

Through comparative analysis of Japan (1990–2000), China (2020–2025), and the United States (2023–2025), the study reveals that economies can appear prosperous while their internal mechanisms deteriorate. This “Rabbit Hole Economy” becomes a self-referential loop where debt, digital replication, and artificial intelligence generate simulated rather than real progress.

The concept of the Autophagic Economy reinterprets this apparent decay as a regenerative process: systems digest obsolete structures—industries, labor models, and consumption patterns—to reconfigure toward cognitive, circular, and sustainable value. Rather than collapse, economic autofagy can signify evolutionary digestion, transforming crisis into renewal.

The study concludes that Positive Economic Autophagy, integrated with the Hollow Economy, anticipates the emergence of Economy 5.0—a post-material system where human well-being expands through knowledge, experience, and emotional capital rather than extractive growth.