Mass layoffs and rising income inequality dominate AI concerns over market bubble fears
Public concern about artificial intelligence centers on mass layoffs and rising income inequality rather than fears of an AI market bubble. Predictions indicate that up to 97 million jobs in the US could be replaced by AI over the next decade, according to Bernie Sanders, while Dario Amodei warns half of entry-level white-collar jobs may be wiped out within 1 to 5 years.
Economist Daron Acemoglu identifies two development paths for AI: an anti-worker route that increases automation and layoffs, and a pro-worker route focused on upskilling and retaining workers. Currently, discourse and business models favor automation, largely driven by profit-focused big tech firms.
A pro-worker approach to AI could enhance productivity, social cohesion, and reduce inequality but may conflict with the interests of dominant tech companies. Policy actions during the Biden administration included discussions with labor representatives and some limited pro-worker measures, such as restricting harmful AI surveillance. However, comprehensive regulations to curb layoffs were absent. The Trump administration later rescinded these efforts and issued an executive order blocking state-level AI restrictions.
Advocates call for a tripartite model involving industry, labor, and government—similar to Germany or Scandinavia—to incentivize pro-worker AI and implement smart regulations. Concrete proposals include expanded retraining programs with free community college, universal health coverage, a four-day workweek without pay reductions, and stronger unemployment insurance. Universal Basic Income is viewed skeptically compared to enhanced unemployment support.
Funding for these safety nets would come from higher taxes on the ultra-rich to cover universal health care, retraining programs, and extended unemployment benefits. Emphasizing worker voice in AI development, Biden supported greater worker input; however, the Trump administration showed less interest, influenced by billionaires and tech executives who often oppose unions.
Historically, economist Wassily Leontief raised concerns about who benefits from automation and how income is distributed—issues underscoring the need for policies that ensure fair distribution of AI's gains. Ultimately, the article calls for a bottom-up movement to pressure lawmakers and tech firms to include workers' voices in AI development and to build a stronger social safety net.
