How to Survive the AI Shock: A Policy Playbook to Avert Political Crisis
The United States must implement proactive labor-market policies to manage the disruptive, job-displacing effects of AI and prevent severe political backlash.Summary
Artificial intelligence promises a significant productivity boost for the U.S. economy, but its rapid adoption threatens to trigger a destructive 'AI shock' that could exceed the economic and social turmoil of the previous 'China shock.' Unlike historical industrial shifts, AI disproportionately impacts younger, highly educated white-collar workers across various industries, creating significant political risk. To mitigate this, the federal government should move beyond inadequate existing programs by introducing tax credits for skill retraining and wage-loss insurance for displaced workers. These initiatives should be funded by a new payroll tax on equity-related compensation, ensuring that companies benefiting most from AI-driven productivity gains contribute to the social stability required to sustain that progress.
(Source：Foreign Affairs)