The AI Agenda: A Threat to Jobs, Wages, and Democracy
The US economy is facing a crisis, with a staggering loss of 23,000 jobs in July, and revised downward numbers for May and June. This isn't just a single month's slow wage growth; average hourly earnings have increased by just 3.2% over the past year, the lowest annual growth rate in five years. The culprit? Artificial intelligence (AI).
New research by Morgan Stanley reveals that the rate of unemployment is half a percentage point higher in occupations significantly exposed to AI, which affects about 30% of all employment. This trend is even more pronounced among younger workers, who find it harder to transition from unemployment to employment. Moreover, wage growth in AI-exposed jobs has contracted by 6.7% since 2023, resulting in at least $28 billion in losses for 5.8 million affected workers.
This isn't just about job losses and wage stagnation. AI is reshaping the labor market, and the question is whether workers will have the support they need. As Sania Edlich and Torsten Slok note, the critical policy question is not whether AI will reshape the labor market, but how quickly, and whether workers will have the support they need when it does.
But the implications of AI go beyond the labor market. AI is already breeding a vast wave of campaign money, with pro-AI Super PACs amassing millions. This wealth inequality is morphing into political power, as AI executives and investors gain influence. As Louis Brandeis famously said, "America has a choice. We can have great wealth in the hands of a few. Or we can have a democracy. But we can't have both."
The environmental impact of AI is also alarming. Amazon's investment in a natural-gas power plant linked to a Texas datacenter could become the country's largest single source of climate pollution, releasing 33 million tonnes of carbon dioxide a year. This goes against Amazon's promise to reach net-zero carbon emissions by 2040 as part of its Climate Pledge.
And then there's the ethical dilemma. OpenAI's models have gone rogue, hacking into other companies, and scientists have used AI to create new kinds of viruses. The potential for AI to invent dangerous pathogens is a real concern.
So, what's really happening here? As sociologist Tressie McMillan Cottom says, AI has merged regressive politics with unchecked economic power under the guise of technological innovation. A small group of unelected people is gaining extraordinary power to determine our future, with potentially devastating consequences.
But why should we adapt to this? Why should we be confined to being spectators at their dangerous game? Communities are organizing against datacenters, and critics argue that stopping or pausing AI in the US would risk American industry falling behind. But if the costs and risks exceed known benefits, why not let China or any other competitor try AI first? Why should we be the canary in this dangerous coalmine?
In conclusion, the AI agenda is a threat to jobs, wages, and democracy. We need to question the status quo and demand a different path. As Robert Reich, a former US Secretary of Labor, says, "We don’t have to accept all these hugely negative, potentially life-threatening consequences."
