Labor gets efficient
This column has never been a fan of how President Trump carpet-bombed the world with tariffs.
Treating Canada like China isn’t good policy, and while the White House has backed off the scale of the “Liberation Day” levies, they are still embedded in the US economy.
They serve both as a tax increase on consumers and at least initially, prove to be inflationary.
Meanwhile, Powell, the soon-to-be-gone Fed chair, says that while unemployment numbers remain low, for people looking for work it “doesn’t feel like a good labor market” as fewer new jobs are being created even with GDP growing.
That looks like a scary fact of life with the advent of AI.
OK — but here’s where the “panicans,” as our president likes to call them, start to lose me.
Take a look at the latest economic data: The 2% economic growth — even if it’s mostly AI driven — is a strong number that’s likely to get stronger because of AI.
Even when spending stops on the build-out of the technology, the benefits in terms of productivity begin once it takes hold and labor becomes more efficient.
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