Nobel economist warns AI debate mirrors liberal democracy's deepening crisis

In a recent interview, Nobel-winning economist Daron Acemoglu criticized the extreme optimism and fear that dominate the artificial-intelligence conversation, calling both extremes counterproductive. He pointed to genuine advances such as improved coding, scientific proofs, and mathematical discoveries, while warning about potential job displacement and broader societal impacts. Acemoglu draws a parallel between this polarization and the collapse of liberal democracy’s “shared prosperity” foundation, which he says has been fractured by class and cultural divisions.

He highlighted his respectful public disagreement with fellow economist Erik Brynjolfsson as a model for policy discourse. His upcoming book, “What Happened to Liberal Democracy?”, proposes pro-worker AI measures, stronger safety nets, and tax reforms to avoid mass unemployment that could destabilize democratic institutions. He cautioned that without such adjustments, the twin crises of AI and democratic decay could threaten the social contract.