AI and National Debt

Artificial Intelligence has the potential to bring major economic changes, including raising productivity, widening inequality, and causing widespread job displacement. There are associated consequences for federal debt which is now historically high relative to national income. Could policy responses such as support for displaced workers, raising taxes on AI profits, or even government ownership of companies help reduce the projected rise in government debt and ameliorate the disruptions from this new technology? Louise Sheiner joins EconoFact Chats to discuss these questions, drawing on a recent paper she wrote with Karen Dynan and Douglas Elmendorf.