Myths That Built Trickle-Down Economics: Productivity Doesn’t Trickle Down (with Preston Mui)

Some of the world’s richest executives are selling AI as the engine of a yet-to-be realized “historic” productivity boom — while warning that it will also eliminate millions of jobs. But if workers absorb the disruption while the gains flow upward, that isn’t shared prosperity. It’s trickle-down economics with better software.

In the final installment of Myths That Built Trickle-Down Economics archive miniseries, we’re returning to Nick and Goldy’s conversation with economist Preston Mui about why productivity is a policy choice. Mui explains how full employment, sustained public investment, resilient supply chains, and affordable essentials create the conditions for workers and businesses to produce more value.

Technology may help us build a more productive economy. Policy will determine who benefits from it.

This episode originally aired April 2, 2024.

Preston Mui is a senior economist at Employ America specializing in macroeconomics, labor economics, productivity, and Federal Reserve policy.

Social Media:

@prestonmui.bsky.social

@PrestonMui

Further reading:

Post-ECI note: The Supply-side May Spoil Warsh's Productivity Story

The Dream of the 90s is Slipping Away in 2025

Early Estimates of the Impact of AI

Within BEA’s Industry Economic Accounts

Our Mission In An Age Of Turbulence: Creating A New Economic Policy Toolkit

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