Outro

Artificial intelligence is often presented as a growth driver. I argue the opposite risk is emerging.

AI-driven cost-cutting threatens jobs and demand, with the risk of a GDP decline, while shortages of chips, energy, water, and grid capacity threaten higher prices and inflation across the whole economy. Exciting economic policy tools can't resolve either problem.

This video shows why relying on central banks to solve our crises won't work this time, while ignoring unemployment, inequality, and infrastructure will deepen recessionary pressures rather than prevent them.