This week, thousands of workers are receiving pink slips.They are not being let go due to inflation or outsourcing to foreign countries. To the contrary, they are being fired because booming sectors of the economy no longer need them. Indeed, it is an economy that may need fewer and fewer humans.

Amazon this week announcedfurther job cutsdue to robotics and AI. Recently,Jack Dorsey,the co-founder of Twitter, announced that his company Block would be laying off 40 percent of its employees. He cited AI as reducing the need for human employees.

In my book, “Rage and the Republic: The Unfinished Story of the American Revolution,” I discuss not just the economic changes unfolding due to AI and robotics but also the political implications of those changes for the American republic.

These economic changes are unfolding all around us. We are looking at one of the greatest job losses in history.

In a free-market system, such technological changes tend to offset losses with new jobs in emerging industries. And there will be such growth with the AI and robotic revolutions. But it is also likely that we are looking at a static class of unemployed and practically unemployable citizens as this new revolution unfolds.

“Low-skill jobs are the most likely to be replaced by a robotic workforce,”I write in the book.

“Amazon warehouses are now entirely mechanized with twelve different types of over seven thousand robots moving rapidly to collect and direct goods where hundreds of people were once employed.”

But what is most notable about the Amazon announcement is that these were white-collar jobs. The impact of AI is not confined to factory workers and truck drivers.

The danger is that politicians will react predictably and try to subsidize jobs that are no longer viable and industries that are being dramatically downsized.At the same time, they are likely to expand model programs in Democratic cities for universal basic or guaranteed income.

Democrats have moved forward withmore than 60 billscreating such programs,and this week, Cook County, Ill. (the second-largest county in the U.S.) made permanent the universal basic income program it had originally launched with federal COVID-19 relief funds.

Source: ZeroHedge News