We can save the apocalyptic concerns of an emerging Skynet moment for another day which, if it occurs, renders all inflation and deflation concerns moot.From an economic perspective, however, AI and all of its associated tools are wildly deflationary.AI is rapidly being adopted by businesses.
But generative AI may be different: It rapidly becomes a ubiquitous force in the workplace. For starters, it affects coding — currently a high-paying job — even as other aspects of a new technological revolution replace humans with robots in everything from advanced manufacturing to quick service dining.
Indeed, the Fed allowed interest rates to stay lower for longer back then. The central bank took that approach despite very rapid economic growth and hefty job creation, as it watched the prices for goods and services remain quiescent, defying theThe Phillips curve suggests that inflation accelerates more rapidly as labor markets reach full employment and as competition for scarce workers drives wages higher. It's an argument the Fed is once more making today.Post-pandemic inflationAs the U.
Yes, there are downsides to an idle workforce. New means of support, like a universal basic income, might be required to assist those thrown off the job.