Theres way too much money on this hype train now though to point out the emperor isnt wearing any clothes and way too many people who always did think that "boilerplate spew" (the one thing AI really does well) is a valid form of programming rather than a shortcut to tech debt.
I guarantee a firm that is really good at project selection with hand written code will annihilate a firm that is full of agentic engineers. And frankly I hope the outcome is that all those who went all in on agentic coding go out of business because they got beaten by disciplined and visionary leaders who understand this subtle and nuanced point.
Capitalism does eventually care about efficient allocation of money to produce capital though. Competition takes care of that; see china vs USA.
For raw materials all you need is a bigger gun, missile and/or aircraft carrier. Labor can go straight to hell and the economy wont freeze up.
It's the same calculus which precipitated a shift from coal (labor reliant, locally sourced) to oil (bigger guns... but much less labor required) in the early 20th century.