The current state of American politics and the stock market’s buoyancy seem to be at odds with each other, according to renowned economist Kenneth Rogoff. With political gridlock becoming the norm in Washington, Big Tech firms may be less likely to face anti-monopoly threats, despite their recent gains in the stock market.
Rogoff points out the disconnect between the surging U.S. stock market and the crisis facing American democracy, especially with the impending rematch between President Joe Biden and former President Donald Trump in the upcoming presidential election. He highlights the potential consequences of policy decisions on free trade, inflation, debt trajectory, and immigration, which could impact the economy.
The rise of artificial intelligence (AI) and its potential risks are also a concern, with Biden issuing an executive order to manage these risks. However, the lack of concrete regulatory efforts in the tech industry raises questions about how these risks will be addressed.
Rogoff warns that the current stock-market rally, fueled by the expectation of unregulated AI, may not be sustainable in the long term. He emphasizes the need for regulatory oversight to prevent potential disruptions in legal, ethical, economic, and political systems.
The upcoming U.S. presidential election and its potential outcomes, whether a Trump victory or a Biden victory, could have significant implications for the economy and global stability. Rogoff suggests that the current stock-market boom may not last, given the challenges and uncertainties facing the U.S. and global economies.
In conclusion, Rogoff’s insights shed light on the complex interplay between politics, the economy, and technology, urging for a cautious approach to regulating emerging technologies like AI to ensure long-term stability and growth.
