AI Powers Growth, Productivity, and GDP, but Won’t Fix the Fiscal Crisis

ABOUT THE EPISODE Kent Smetters of the Penn Wharton Budget Model warns that while AI adoption could lift GDP by up to 3.7% by 2075, it’s no cure for America’s debt. Market gains are concentrated in the “Magnificent Seven,” major tech giants, and policymakers betting on AI as a fiscal rescue are overstating its power. Early estimates show ~$400B deficit relief in a decade, but costs like healthcare could erase much of that.

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