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Source: Fortune.com
Summary
According to the Congressional Budget Office (CBO), the US working-age population is expected to decline by 2.4 million people by 2035 due to declining birth rates and the Trump administration’s strict immigration policies. The CBO report notes that rising business adoption of artificial intelligence could help mitigate the impact on productivity. However, the report also highlights the potential negative effects on economic growth and the federal budget due to reduced immigration and a smaller workforce.
Our Reading
The announcement sounds familiar.
The CBO report forecasts a decline in the US working-age population, which will lead to a smaller workforce and potentially slower economic growth. The Trump administration is counting on emerging technologies like artificial intelligence to help mitigate the impact.
The report notes that AI-related investments are expected to grow by 3.9% this year, driven largely by the construction of data centers and the purchase of high-end computers and intellectual property necessary to deploy AI at scale.
The administration is optimistic about AI’s potential to offset the labor force slowdown, but the benefits of AI can only go so far. For one thing, AI doesn’t pay taxes, and fewer people means a smaller taxpayer base.
Rather than being a panacea, AI is a band-aid on a broader problem, and the absence of humans will be hard to miss in the long run.
Original Observation: This is a case study in corporate language, where “efficiency” is rebranded as a solution to a problem created by the same policies.
Author: Evan Null
