Volatility Capacity

Broad-based taxes on spending, such as value-added taxes or goods and services taxes, that maintain government revenue even as labor income declines.

Government funding that partially or fully covers wages for displaced or at-risk workers, incentivizing employers to maintain employment during periods of AI-driven disruption.

Fiscal incentives to employers who invest in worker retraining, hire displaced workers, or adopt labor-augmenting rather than labor-replacing AI technologies.

Government funding for compute clusters and data centers, and clean energy, to prevent monopolistic control of AI capabilities and democratize access for researchers and startups.

Modernized unemployment insurance with broader eligibility and longer duration, supported by stronger financing and connections to reskilling opportunities.

Government employment of last resort, directing willing workers toward projects with collective societal benefits in areas like infrastructure, caregiving, and environmental restoration.

Legal frameworks that assign financial responsibility for AI-caused harms to developers and deployers, balancing innovation incentives with victim compensation.

Modernized competition enforcement to prevent dominant firms from leveraging control over essential AI infrastructure to stifle competition and capture outsized economic value.

AI literacy embedded across all education levels, covering how AI systems work and their societal implications, along with the critical thinking skills needed to navigate an AI-permeated world.