The only plausible scenario where the US avoids major fiscal adjustment is if AI produces a genuine productivity revolution that transforms the economy sufficiently to sustain high incomes and allow people to receive government transfers without working, with robot-generated income paying for everything.
forecastpending
Speaker
Kenneth RogoffEvidence Quote
“It's that the AI revolution uh turns out to uh you know just work magically much better than we you know anyone imagine”
Source
Kenneth Rogoff on Monetary Moves, Fiscal Gambits, and Classical Chess | Conversations with Tyler— Mercatus CenterCreated: 8/11/2026, 7:10:38 AM
My Notes
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