Washington, Feb 25: While many political observers view former President Donald Trump as a central threat to American democracy, Nobel Prize-winning economist Daron Acemoglu believes the deeper danger lies elsewhere — in the economic disruption driven by artificial intelligence and widening inequality.In an interview with Fortune, Acemoglu warned that unchecked technological change combined with large-scale job destruction could erode the foundations of democratic stability in the United States.“If we go down this path of destroying jobs and creating more inequality, US democracy is not going to survive,” he said, underscoring concerns that economic insecurity can fuel political instability and social fragmentation.Nobel Recognition for Institutional ResearchAcemoglu was awarded the 2024 Nobel Prize in Economic Sciences alongside James A.
Robinson and Simon Johnson for their research on how political and economic institutions shape national prosperity. Their work emphasizes that inclusive institutions — those that create broad-based opportunity — are essential for sustainable growth and democratic resilience.Now, Acemoglu argues that the rapid expansion of artificial intelligence risks undermining those very institutions if its benefits are not widely shared.“AI Job Apocalypse” Already UnderwayAccording to Acemoglu, the threat is not hypothetical. He contends that the so-called “AI job apocalypse” has already begun.
Citing recent labour data, he noted that American companies recorded approximately 1.2 million layoffs in 2025 — a 58 percent increase from the previous year. Of these, more than 50,000 job cuts were directly linked to AI-driven automation and restructuring.While automation has long been part of industrial evolution, Acemoglu suggests that the scale and speed of AI deployment may produce sharper disruptions, particularly in white-collar and service-sector roles once considered secure.Inequality and Democratic StrainThe economist’s concern extends beyond employment numbers. He warns that growing inequality — especially if AI-driven productivity gains accrue primarily to large technology firms and capital owners — could intensify social divisions.Historically, periods of economic displacement without adequate social safeguards have been linked to political unrest and democratic backsliding.
Acemoglu argues that unless policymakers actively shape how AI integrates into the economy, the technology could concentrate power rather than distribute opportunity.He advocates for policies that direct AI toward augmenting human labour rather than replacing it, investing in worker retraining, and strengthening labour protections.A Broader DebateAcemoglu’s remarks come amid a broader global debate over AI’s economic impact. Technology leaders often highlight productivity gains and new job creation, while critics warn of displacement, surveillance risks, and increased corporate dominance.For Acemoglu, the issue is not technological progress itself, but the policy choices that accompany it.“Technology does not determine destiny,” he has argued in previous writings. “Society’s institutions and decisions do.”As AI continues to reshape industries from finance to healthcare, the question facing the United States may not simply be how advanced its technology becomes — but whether its economic system can adapt in a way that preserves both opportunity and democratic stability.
