Hubbard Warns of Economic Stagnation Without AI Mitigation Strategies

According to economist and former dean of Columbia Business School Glenn Hubbard, the United States is failing to address the disruptions that will result from the rapid advancement of artificial intelligence (AI), which could stifle economic growth for years to come. While most business leaders, analysts, and economists agree that AI will play a significant role in shaping the future of the US economy, politicians have stopped discussing economic growth due to the potential job losses and disruptions that could arise. Hubbard suggests that the solution to managing the impact of AI requires government assistance, including funding for community colleges and public-private partnerships to provide training and education to affected individuals. However, he acknowledges that increased government spending may be necessary, and policymakers should consider raising taxes or cutting other expenses to offset this expenditure. Hubbard warns that failure to address these issues could lead to social unrest and erode support for the capitalist system. Overall, Hubbard argues that investment in basic research and targeted subsidies for critical areas such as national defense are crucial to maximize the benefits of AI while minimizing its negative effects.