Thanks for posting an excellent argument here. Essentially with Jevons Paradox, we have something like technology —> +efficiency (more stuff with less resources) —> price drops —> people use more. The logic is relatively straightforward. The promise of AI has always been to improve efficiency or getting more done with less and DeepSeek has turned the reinforcement learning model on the process to improve everything for everyone.
As you noted, the game may have begun. Unfortunately, the power in Washington is in the hand of people who may not understand the power of long game and collaboration.