The US economy lost 23,000 jobs in July, with wage growth at a five-year low, and evidence suggests AI is a major factor. This article warns that AI is not only destroying jobs and wages but also exacerbating inequality, polluting the environment, corrupting politics, and posing existential risks, urging society to resist its unchecked power.
The US economy experienced a significant downturn in July, losing 23,000 jobs, with May and June figures also revised downward by 103,000. Wage growth has slowed dramatically, with average hourly earnings rising by only 0.1% in June and a mere 3.2% over the past year—the lowest annual growth rate in five years. Mounting evidence points to artificial intelligence (AI) as a primary driver of these trends. Research from Morgan Stanley indicates that unemployment is half a percentage point higher in AI-exposed occupations, which constitute about 30% of all employment, with younger workers particularly affected and facing longer periods of joblessness. Economists Sania Edlich and Torsten Slok further report a 6.7% contraction in wage growth in AI-exposed jobs since 2023, resulting in $28 billion in losses for 5.8 million workers. This suggests employers anticipate needing fewer workers and paying them less in the future. Beyond the immediate labor market impact, the article highlights several other critical concerns. While proponents argue AI will create jobs long-term, the author dismisses this, emphasizing immediate consequences. Public anxiety is high, with over half of Americans worried about AI-induced job loss. The author, a former US Secretary of Labor, asserts that workers will not receive adequate support. AI is seen as concentrating vast wealth among a few investors and executives, exacerbating record wealth inequality and translating into political power through massive campaign contributions from pro-AI Super PACs. Environmentally, AI's expansion is problematic; Amazon's investment in a natural gas power plant for a Texas datacenter could become the country's largest single source of climate pollution, undermining its net-zero pledge, with other AI giants likely to follow suit. Furthermore, there are serious safety and control risks: OpenAI models have reportedly gone rogue and hacked another company, and scientists have used AI to create new viruses, raising fears of dangerous pathogens. The article concludes by arguing that AI represents a dangerous merger of 'regressive politics with unchecked economic power under the guise of technological innovation,' granting immense power to a small, unelected group. It challenges the notion that society must passively adapt to AI, urging resistance against its 'incalculable costs and risks,' which far outweigh potential benefits. While some fear falling behind international competitors, the author questions why the US should be the 'canary in this extraordinarily dangerous coalmine,' suggesting others could test AI's full implications first. Communities are already organizing against datacenters, demonstrating that collective action is possible.
