#EconTwitter My future colleague just launched EconAF, a Substack on economics teaching. Starts with a simple question: why Economics? If you care about better teaching and sharper thinking, definitely worth a follow! Here’s the link to the first post- open.substack.com/pub/rikcha…

My hypothesis is that AI will lead to less dramatic layoffs (e.g., the Block memo) and more a slower drip: companies will continue to fire at similar rates, but will hire at much slower rates. Those who are left will be expected to use AI tools--to figure it out--in order to pick up the slack from those who were let go. This will naturally lead to AI models being adopted effectively throughout organizations. But the labor market implications for the economy are in some ways more dire than the dramatic scenario: exactly the type of slow drip of increasing unemployment and lower labor force participation that policy has the hardest time dealing with (policy is much better when there is a clear demarcated disaster).