NOBEL ECONOMIST: AI WON'T RESTORE RAPID GROWTH ERA

The economist's assessment challenges the widespread assumption that AI breakthroughs will spark a new period of accelerated economic expansion. Western economies experienced sustained productivity gains throughout much of the 20th century, driven by major technological innovations including electricity, computing, and the internet. This latest warning suggests the productivity slowdown observed in recent decades may persist despite AI advancement. The economist cited structural factors limiting growth potential, including aging populations and resource constraints, that AI alone cannot overcome. The claim contradicts optimistic projections from tech industry leaders and some analysts who predict AI will drive significant economic acceleration. Productivity growth rates have remained subdued in developed nations since the 2008 financial crisis, raising questions about whether transformative technologies can still generate economy-wide gains comparable to previous eras.