David Sacks wonders if AI-powered robots could provide an answer to the US 'fiscal situation'
By: Tim Paradis (Business Insider via AOL)
A teeny, tiny glimpse into Trump's economic circle that suggests the pursuit of deflationary pressures are the remedy for fiscal woes. It's like the iridescent flash of a hummingbird on the wing.
Is Donald Trump trying to reverse neoliberalism?
S E E D E D C O N T E N T
David Sacks, the White House artificial intelligence and crypto czar, said it's possible that a productivity boost from AI and robots could be so powerful that it helps brighten the US financial picture.
Sacks said on an episode of the "All-In" podcast posted on Saturday that it's not clear whether recent bond market jitters over the prospect of rising US debt levels represent a "blip" or "some larger once-in-a-century type event."
He then said it's possible that a tech windfall could, in effect, rescue lawmakers who appear unwilling to make difficult decisions to reduce the nation's borrowing.
"I don't like America's fiscal picture at all, but what if the AI and robotics revolution plays out in the most optimistic way over the next decade and is massively deflationary, and we get basically AI-powered robots expanding the economy massively?" Sacks said.
Chamath Palihapitiya, the billionaire investor, interjected that such a scenario would require investments in the power grid, a notion that Sacks agreed with.
"My point is just what if the new technology provides an answer to the fiscal situation that's not currently on the table?" Sacks said.
The bot-savior scenario would be far more welcome than other outcomes some on Wall Street are predicting.
Torsten Sløk, the chief economist of Apollo Global Management, said Friday that the bond market appears to be pricing in a scenario of so-called stagflation, which occurs when growth is sluggish and inflation remains elevated.
That would put the US economy in a tough spot — a possible sequel to bouts of stagflation in the 1970s. Many economists fear such a scenario because it can be far more difficult for Federal Reserve policymakers to combat than run-of-the-mill recessions.
The idea that the tech gains could help the US shore up its finances comes as some industry observers have said the rise of AI and bots could come at the expense of workers booted from their jobs.
Others have a more optimistic take. Namely, that AI will be a productivity accelerator, allowing people to get more done. That's the type of grow-the-pie scenario that Sacks, a close friend of Elon Musk, appeared to indicate was possible.
It's an idea the Tesla CEO shares. Musk said this month that tens of billions of humanoid robots could one day remake the global economy. The Tesla CEO said that level of automation could lead to a "universal high income" in which goods and services become so readily available that "no one wants for anything."
That followed Musk's comments in October that Tesla's humanoid Optimus could amount to the "biggest product ever of any kind."
Before floating the idea of a massive tech boost, Sacks said it was still unclear what might play out with the nation's finances and the bond market.
"The reality is we don't know exactly what's going to happen," he said.
Sacks and the White House didn't immediately respond to a request for comment from BI.
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David Sacks (and Elon Musk) have floated the idea that AI enhanced manufacturing could become so productive that anyone could obtain anything at anytime. Will technology make neoliberals' greatest fears come true?
Here's whats going to happen, in the second half of this century. All work that can be done by robots will be done by robots, (including repairing and maintaining robots) and that will be an ever expanding category of jobs. The robots will be owned by just a relatively few people. They will be the richest people in world history. Most people will be unemployed. In order to maintain markets for the goods and services the robots will create , there will be a universal basic income for every American.
Americans will be living in a dystopia.