This would stop the currently exponential pace of growth from outpacing what society, and regulation, can adapt to. Thus avoiding the inevitable crash that will happen when we lose control of the exponentially accelerating train of technology, and it flies off the rails.
To add to this, when a lot of people say “it’ll cause a negative feedback loop” technically they’re referring to a positive feedback loop, where the feedback makes the change worse instead of correcting it.
Positive feedback is actually insanely useful in the right application. A great example is a light switch. There’s positive feedback for each position and it’s inherently unstable in the “middle” where even a slight nudge forces the switch over fully to the off or the on position.
Also Schmitt triggers for electronics. That’s basically how all computers work under the hood. Once you cross a threshold positive feedback takes over and forced the output from rail to rail (0V or ground, to 5V rail supply for example)
In fact most amplifiers use negative feedback because if you had positive feedback you would end up with your amplifier screaming at the top of its lungs (that’s also why if you put an instrument close to a speaker it causes positive feedback and amp screech)
I’ve heard the terms “vicious”/“virtuous” cycle kicked around.