White House Economist Dismisses AI Job Losses as 'Science Fiction' After Market Turmoil

White House Economist Rejects AI Doomsday Fears

Pierre Yared, acting chair of the White House Council of Economic Advisers, dismissed a weekend report from Citrini Research that sparked market turbulence, calling it an "interesting piece of science fiction" that fundamentally misunderstands economics 1

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. The report imagined a 2028 scenario where rapid advances in AI turbocharge productivity but render massive swaths of human labor obsolete, triggering job losses, collapsing consumer spending, and dragging down the stock market 2

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. Speaking at the National Association for Business Economics in Washington, Yared argued that the paper "violates some of the basic identities in economics" by suggesting AI will destroy jobs precisely because it's productive 1

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Economic Implications of Artificial Intelligence Remain Positive

The administration's stance frames AI as an economic boon rather than a threat. Treasury Secretary Scott Bessent has consistently pointed to modern economic history showing that increases in investment are followed by increases in employment, and he anticipates the same pattern with AI technologies 1

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. Yared emphasized that "AI can either be a groundbreaking innovation that increases production, increases income" and expenditure, "or it can be an innovation that ends up not delivering on its promise" 2

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. Bessent and other top officials have compared the current investment surge to the 1990s internet boom, which underpinned that era's strong economic growth, low unemployment, and contained inflation 1

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AI's Impact on Employment Shows Worker Confidence

Despite widespread anxiety about automation, workers themselves appear less concerned about displacement. A PYMNTS Intelligence report found that among Labor Economy workers—mostly hourly workers earning under $50,000 a year—a clear majority continue to believe their skills will remain relevant as technology evolves 2

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. Workers most exposed to automation are not acting as though humanoid robots are about to displace them at scale. Some observers believe AI will lead to upskilling of workers rather than an elimination of jobs, suggesting the technology could drive productivity and employment simultaneously 2

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America's AI Action Plan Prioritizes Dominance

At the NABE conference, Yared stated that "overall, the administration's position on AI is to lean into it" and ensure the US can "dominate" internationally 1

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. President Donald Trump released America's AI Action Plan in July, outlining a strategy focused on deregulation, building AI infrastructure, expanding export controls, and protecting free speech for chatbots 2

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. Trump emphasized that "as our global competitors race to exploit these technologies, it is a national security imperative for the United States to achieve and maintain unquestioned and unchallenged global technological dominance." Shortly after taking office, Trump scrapped an AI policy established by predecessor Joe Biden that set safety and transparency requirements for AI developers 1

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. The shift signals a clear preference for accelerating AI development over implementing restrictive safeguards, betting that the technology will create opportunities rather than trigger the catastrophic scenarios outlined in the Citrini Research report.