Next recession: Robert Shiller sees 'existential threat' from AI fear - Business Insider

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Nobel laureate Robert Shiller identifies a rising 'existential threat' to the economy's expansion — and tells us why it's similar to what made the Great Depression so severe

According to Shiller, the rise in attention paid to so-called technological unemployment that began in 1929 was an important factor in worsening the Great Depression. People became worried that their jobs would be permanently replaced by robots, and so they reined in their spending and subsequently drowned the economy.

"The phrase 'artificial intelligence' today is getting an even bigger surge, and represents a more existential threat to our sense of economic virility," Shiller told Business Insider in reference to the huge spike in the chart. His concern is that if the next recession substantially increases the unemployment rate — which is already near a 50-year low — the tech displacement narrative may gain more traction. And, in turn, it would worsen the recession as people change their spending habits out of fear that their career prospects are at risk.

"The surge of attention to 'artificial intelligence' is an order of magnitude bigger, but still hasn't scared people so much so far, it seems," Shiller said.

 

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Hindsight is always perfect. Why did Shiller & other great academics not see the risk of putting our national egg in a Chinese basket? realDonaldTrump POTUS EricTrump

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