Warning: The Inevitable Collision of AI, Jobs, and Inflation

Artificial intelligence is often presented as a growth driver. I argue the opposite risk is emerging.

AI-driven cost-cutting threatens jobs and demand, with the risk of a GDP decline, while shortages of chips, energy, water, and grid capacity threaten higher prices and inflation across the whole economy. Exciting economic policy tools can't resolve either problem.

This video shows why relying on central banks to solve our crises won't work this time, while ignoring unemployment, inequality, and infrastructure will deepen recessionary pressures rather than prevent them.

Let us know your thoughts by voting in our poll: https://www.youtube.com/post/UgkxCHW0BMRXt6NnNNJGRBWS7FpJg0OAEV4s

00:00 Why AI is more dangerous than we think
01:12 The four risks AI creates
02:25 AI and the global stock market bubble
03:50 How the crash will spread to banks
05:10 AI-driven unemployment
06:45 Government policy failure
08:15 AI and inflation pressures
09:55 Inequality and the digital divide
11:20 Environmental limits of AI
12:45 Costs arrive before benefits
13:50 A warning for 2026

TRANSCRIPT
A transcript for this video is available at: https://www.taxresearch.org.uk

IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO
If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. https://www.taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp/

HOW TO SUPPORT US
Please consider donating: https://ko-fi.com/taxresearch

ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.

This video was edited by Thomas Murphy.

RICHARD MURPHY ON BLUESKY:
https://bsky.app/profile/richardjmurphy.bsky.social

OR

ON MY BLOG: http://www.taxresearch.org.uk/Blog/

HIT SUBSCRIBE & GET NOTIFICATIONS
Subscribe and get notified of new videos released.
INTRODUCTION: https://www.youtube.com/watch?v=HdHsRPy3060

PLAYLISTS:

The Wealth Series
https://www.youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD

Ecenomics
https://www.youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4

Britain
https://www.youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10

Tax
https://www.youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY

MMT
https://www.youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX

Money
https://www.youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m

Climate Change
https://www.youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ

USA
https://www.youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H

Labour
https://www.youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw

The Trump Administration
https://www.youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx

#AI #ArtificialIntelligence #AICrisis #TechBubble #EconomicCrash #SystemicRisk #StockMarket #FinancialInstability #BankingCrisis #ShadowBanking #JobLosses #Automation #FutureOfWork #Unemployment #RecessionRisk #CostOfLiving #AffordabilityCrisis #Inflation #Inequality #DigitalDivide #EnergyCrisis #WaterCrisis #ClimateRisk #DataCenters #BigTech #TechRegulation #PublicInterest #CareEconomy #PeopleBeforeProfit #PoliticsOfCare #EconomicJustice #Neoliberalism #MarketFailure #SocialImpact #GlobalEconomy #SustainableTech #GreenEconomy #ResponsibleAI #TechEthics #PublicPolicy #EconomicReform #WealthGap #FinancialBubble #TechBoom #RiskManagement #FutureEconomy #SocialStability #Democracy #HumanWellbeing