What changed
AI PRODUCTIVITY BOOM COULD WORSEN THE DEFICIT, NOT FIX IT
While some assume AI-driven 3% GDP growth would halve the deficit, a model from the Washington Examiner finds higher productivity raises interest costs and healthcare spending, swamping any tax revenue gains. Deficit stays near 6% of GDP.
Why it matters
While some assume AI-driven 3% GDP growth would halve the deficit, a model from the Washington Examiner finds higher productivity raises interest costs and healthcare spending, swamping any tax revenue gains. Deficit stays near 6% of GDP.