The Meb Faber Show · Friday, September 4, 2026
AI is expected to raise productivity, but the primary benefit may be maintaining current growth rates rather than creating an uplift. Inigo Fraser Jenkins suggests that AI's impact will be most significant in certain sectors, potentially leading to job dislocation in the near term due to rationalization of the labor force.
“AI presumably does raise productivity, but the central case of that is that it just keeps us running at the growth rates that we've seen in recent decades, not an extra uplift of growth.”
“And then there's the less good or less sort of hopeful sounding reason, which is the US firms are able to fire people faster.”
“So it implies in the near term at least that I think we should expect some level of job dislocation.”