AI won’t fix America’s debt, Guardian analysis argues

The White House hopes AI will help the US grow its way out of debt. That is a new take on the Reagan-era promise that tax cuts pay for themselves, Eduardo Porter argued in an analysis for The Guardian.

“Even if AI supercharged the economy, its impact on the government’s finances would be muted,” he wrote.

Growth the US has rarely seen

Treasury Secretary Scott Bessent is relying on AI to help deliver 3% annual growth, a rate the US has rarely hit this century, Porter wrote.

The Committee for a Responsible Federal Budget, a fiscal watchdog, has run the numbers. To cut the deficit to 3% of GDP by 2036, the economy would need to grow about 4.4% a year. Balancing the budget would take about 7.2%.

The group’s own estimates of AI’s boost to growth are far smaller. The Congressional Budget Office expects AI to add...

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