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The Age of AI will bend but not break the economy

Policymakers aim to prevent AI-driven unemployment spikes linked to a 0.4–0.7% rise in poverty, preserving economic stability for workers and the public.

  • Policymakers are moving to limit AI-driven unemployment to prevent a rise in poverty, targeting displacement of workers by AI technologies rather than broader economic shifts.
  • Research findings show a 2E65-percentage-point rise in unemployment is tied to a 0.4–0.7 percentage-point increase in the poverty rate, motivating policy action.
  • Frazier, a fellow at Texas Law and author of the Appleseed AI substack, wrote the analysis for The Fulcrum framing the AI-driven unemployment policy debate.
  • Everyone has a stake in keeping unemployment low, and policymakers say their steps aim to protect households at risk of poverty from job loss.
  • Preventing AI-driven unemployment positions labor policy for reform, as researchers link it to avoiding short-term poverty spikes and reshaping labor protections and support programs.
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23 Articles

Journal Gazette & Times-CourierJournal Gazette & Times-Courier
+22 Reposted by 22 other sources
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The Age of AI will bend but not break the economy

Everyone has a stake in keeping the unemployment rate low. A single percentage point increase in unemployment is tied to a jump in the poverty rate of about 0.4 to 0.7 percentage points.

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The Billings Gazette broke the news in Billings, United States on Thursday, December 11, 2025.
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