LIZ PEEK: AI revolution threatens to push America towards socialism amid job fears

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What if Sen. Bernie Sanders is correct and Federal Reserve Chair Jerome Powell is mistaken?

What if the AI revolution causes mass layoffs of American staff, because the Vermont senator warned in a current Fox Information op-ed? And what if Powell is mistaken that the softening labor market is due primarily to provide points — decrease immigration and a decrease labor participation price — somewhat than AI-produced "efficiencies"?

What would be the response of policymakers? What ought to it's?

SEN SANDERS: AI MUST BENEFIT EVERYONE, NOT JUST A HANDFUL OF BILLIONAIRES

AI will quickly grow to be a political battleground . Democratic socialist Sanders, ever the category warrior, has already questioned whether or not AI will assist all Individuals or solely " a handful of billionaires ." Just like the commerce offers that despatched thousands and thousands of jobs abroad, Sanders worries that the large funding flowing into AI may lead to as much as 100 million Individuals dropping their jobs over the subsequent decade. He may very well be proper; think about the repercussions.

Younger persons are already dropping religion in capitalism and cozying as much as socialism. Two-thirds of Democrats now view socialism more positively than capitalism. Nothing may undermine our capitalist system sooner than widespread job losses stemming from a tech breakthrough cheered by the investor class.

That is the vital concern of our day — one getting scant consideration, even from self-described "data-driven" Powell, who's perennially trying backward somewhat than ahead. In his newest press convention, Powell answered one query about employment by saying, "The availability of staff has dropped very, very sharply because of primarily immigration, but additionally decrease labor pressure participation. So, and meaning there’s much less want for brand spanking new jobs, as a result of there’s -- there isn’t this move into the pool of labor the place folks want jobs." Excuse me, what?

The economic system is rising, but hiring is declining. Although the federal government shutdown has blocked the same old month-to-month labor experiences, loads of information suggests the job market is weakening. Firms are more and more citing AI investment as a consider decrease headcounts.

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Company America is spending tens of billions of {dollars} on AI, promising shareholders nice good points in productiveness. However the place will that productiveness come from, aside from lowering headcounts? Actually, folks armed with synthetic intelligence can ship data and analyses extra quickly, making themselves and their organizations extra productive. However in the end, it's going to additionally make some folks redundant and sluggish new hiring. The affect on America’s labor market will likely be profound — and is basically being ignored.

Amazon lately introduced it was laying off 14,000 employees . A high human sources official on the agency despatched a observe titled "Staying nimble and persevering with to strengthen our organizations." She wrote that "the world is altering shortly. This era of AI is probably the most transformative expertise we’ve seen because the Web, and it’s enabling firms to innovate a lot sooner than ever earlier than."

What sorts of staff are in danger? Manufacturing facility staff and truck drivers, for positive, who're already being changed by robots and AI — but additionally white-collar staff. Fortune notes that the Amazon layoffs "present it’s coming for center administration first." The world’s largest retailer employs about 1.5 million folks; 14,000 is a drop within the bucket. However the pattern is worrisome — and for these 14,000 folks, devastating.

Amazon isn't alone. UPS lately introduced it has minimize 48,000 jobs this yr — 14,000 administration positions and 34,000 in operations. UPS began the yr with about 500,000 staff. Goal additionally made headlines lately, saying it's going to minimize 8% of its company workforce — its first vital layoffs in a decade.

JOBS THAT ARE MOST AT RISK FROM AI, ACCORDING TO MICROSOFT

Outplacement agency Challenger, Grey & Christmas cites market and financial circumstances as the principle motive for many company layoffs thus far but additionally factors to AI. That is smart. In spite of everything, the economic system is rising briskly — second-quarter actual GDP progress was 3.8%, and it appears to be like like we’ll see strong enlargement for the third quarter as nicely.

There has by no means been a sooner adoption of latest expertise. Already, an estimated one-third of Individuals use AI; ChatGPT receives 5.4 billion visits per thirty days. World AI revenues are anticipated to whole $391 billion this yr and will attain $3.5 trillion by 2033. These estimates could also be optimistic, however high tech corporations are investing about $400 billion this yr alone to develop capability, in line with The Wall Road Journal. They clearly imagine the projections.

Bernie Sanders apart, nobody ought to wish to halt the AI revolution. Synthetic intelligence guarantees extraordinary advances in drugs and different sciences — and will radically enhance training for America’s kids.

It’s additionally largely American firms that may profit from the explosion in AI spending, reaping the earnings and affect that include world dominance of a brand new expertise. Rising productiveness will spur hiring in sure industries and increase actual wages. It is going to additionally permit for the retirement of the 20-plus million child boomers nonetheless working.

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However there could be a interval of adjustment when layoffs exceed job creation. Unemployment might rise, fueling anger on the improvements producing extra out-of-work Individuals and resentment towards the businesses behind the disruptions.

Sen. Bernie Sanders joined the co-hosts of "The View" to debate his new guide on Monday, October 20, 2025. (ABC/TheView)

Lawmakers and monetary leaders should be ready for this risk — one that would deepen voters’ rising affection for socialism and rejection of capitalism. That will be a catastrophe for a rustic that has outperformed each different nation on Earth, producing unprecedented alternative and wealth.

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In any other case, it is going to be Bernie Sanders and his left-wing colleagues dictating the response. Sanders advocates a 32-hour workweek with no loss in pay, giving staff considerably extra energy and imposing a "robotic tax" on massive tech firms. Such measures would sluggish American competitiveness and progress, as they've in Europe.

We can not permit that to occur.

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Liz Peek is a Fox Information contributor and former companion of main bracket Wall Road agency Wertheim & Firm. A former columnist for the Fiscal Instances, she writes for The Hill and contributes regularly to Fox Information, the New York Solar and different publications. For extra go to LizPeek.com. Comply with her on Twitter @LizPeek.