Vermont Senator Bernie Sanders has proposed an ambitious plan to address the potential economic fallout from artificial intelligence (AI) impacting jobs. His latest report highlights the significant risks AI poses to employment over the next decade, estimating that up to 100 million jobs in the United States could be at risk.
Key Findings from Sanders’ Report
The report emphasizes a widening gap between worker productivity and wages. Since 1973, U.S. workers have seen a stark disparity where productivity has increased by 150%, while average real wages fell by nearly $30 per week. During this same timeframe, corporate profits surged by over 370%.
Productivity-Wage Gap
- 1973 to 2024: Productivity increased by 150%
- Corporate profits rose more than 370%
- Real wages dropped by $30 per week for the average worker
- Estimated fair minimum wage: $25 per hour
- Current federal minimum wage: $7.25 per hour
Sanders argues that this productivity-wage gap has persisted long before AI became prevalent. Corporate strategies have historically favored profit maximization at the expense of fair employee compensation.
Proposal for a Robot Tax
To combat the potential job losses due to AI and automation, Sanders suggests a “robot tax.” This tax would target large corporations that benefit from technological advancements leading to job displacement. The goal is to redistribute wealth generated by AI back to affected workers.
- The robot tax would act as a direct excise tax on technology companies.
- Proceeds from the tax would support workers impacted by job automation.
Sanders likens this idea to a universal basic income (UBI), which would provide financial support to those directly affected by automation. He stresses the importance of adapting tax and regulatory policies to prevent corporate exploitation of technological advancements.
Context and Broader Implications
While some skeptics question the extent to which AI will displace jobs, Sanders’ approach resonates with a growing consensus that protective measures are necessary. Notably, even influential figures such as Bill Gates have shown support for similar initiatives.
Experts caution that a UBI alone may not suffice. They advocate for comprehensive social safety nets, including worker protections like rent controls and active engagement in workplace governance, to support individuals navigating an increasingly automated economy.
As the debate continues, Sanders emphasizes the need for immediate action to ensure that the economic benefits of AI are equitably distributed. His plan serves as a call to action for lawmakers and business leaders alike to consider the implications of automation on the workforce.
