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The New York Times Doesn’t Understand AI's Role in Suppressing Wages
Gizmodo • • business
Key Points:
- The New York Times article examines whether AI is causing job losses in the U.S., finding mixed evidence and noting that job growth continues in many white-collar sectors despite some voluntary layoffs.
- The article does not address how AI may be used by employers to suppress wages by creating fear among workers about job security and reducing their willingness to demand higher pay.
- Experts and studies cited indicate that workers fearing AI-related job displacement feel less empowered to negotiate raises, contributing to wage growth lagging behind inflation despite low unemployment.
- This suggests AI might weaken workers' bargaining power and contribute to stagnant or declining real wages, even if it does not yet cause widespread unemployment.
- The broader concern is that AI could erode middle-class prosperity by suppressing wages over time, leading to a lower quality of life without dramatic job losses, a nuance often missing from mainstream discussions.
