The Economics Show Martin Wolf talks to David Autor: could AI be a bigger threat to US jobs than China?
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Apr 21, 2025 
David Autor, a prominent MIT economics professor and expert on job automation, joins Martin Wolf to discuss the aftermath of China's entry into the World Trade Organization. They explore the 'China shock' and its devastating impact on U.S. jobs, questioning the feasibility of revitalizing manufacturing. The conversation shifts to the looming challenge of AI, highlighting its potential to disrupt the job market while also enhancing productivity. Autor emphasizes the need for strategic policies to ensure AI fosters new opportunities, particularly in education and healthcare.
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Severe Impacts of China Shock
- The China shock caused rapid import growth from 2001, devastating U.S. manufacturing communities with unemployment and social decline.
- The adjustment to this shock has been slow and painful, with lasting negative effects on affected workers and regions.
Manufacturing Losses Are Location-Specific
- Manufacturing job losses hit geographically concentrated communities anchored by specific industries.
- These jobs paid well for non-college workers, so alternatives were poorer, causing deep local economic distress.
Focus on Future High-Tech Sectors
- Tariffs to bring back low-value manufacturing jobs are misguided and counterproductive.
- The future lies in high-tech sectors like AI and quantum computing, where investment and protection are needed.