Economic Theory

Creative destruction drives growth but displaces workers. Governments shouldn’t stop it; they should support workers through the transition. The Nordic model shows it’s possible.

After decades of bad advice that led many developing nations down the wrong path and ignored evidence against neoclassical dogma, the World Bank should have the courage to admit it was wrong.

AI is supposedly going to make America’s current level of income inequality explode. That will not happen. The idea rests on far-fetched assumptions about monopolies, mass job loss, and winner-take-all dynamics that AI won’t change.

Despite what the apostles of artificial general intelligence warn, there is no reason to think AGI will get here anytime soon, if ever.

Rather than proposing universal basic income as the solution to robots supposedly taking all our jobs, the task should be to improve federal worker adjustment assistance programs.

We should want companies to shed workers they no longer need. Productivity gains flow to lower prices, higher wages, and long-term growth. Don’t slow innovation—accelerate it.

A quarter century after the dot-com revolution, artificial intelligence is prompting similar waves of exuberance and alarm. History suggests AI may face short-term hiccups, but is more likely headed toward robust, sustained growth.

The culture of digital and AI opposition is a growing threat to American prosperity and power. Unless we return at least to neutrality, other nations unburdened by this self-doubt will surpass us.

Culture matters. Just as England’s discomfort with industrialization weakened its economy, today’s U.S. elite skepticism risks becoming a collective headwind against digital progress.

A report on inequality commissioned for this year’s G20 summit offers ill-advised antitrust recommendations for reducing income and wealth inequality.