Can AI Outrun America's Deficit Problem?

National Economic Council Director Kevin Hassett argues that the economic benefits of AI may be greater than current data show, comparing today's dynamics with the early internet era. In this interview, Hassett explains that improvements in computing were difficult to capture in official statistics during the 1990s, and a similar measurement challenge may be masking AI's true impact on productivity and growth. He remains optimistic about the economy's potential to outpace its debt burden. Hassett also says reducing the federal workforce can generate budget savings, which could help address the growing deficit. He acknowledges that bringing the federal deficit to 3% of GDP is a challenging goal, but he believes that a combination of technological innovation and fiscal discipline can put the country on a more sustainable path. The conversation touches on the trade-offs between short-term austerity and long-term investment. The segment offers a forward-looking perspective on the intersection of technology and fiscal policy. As AI continues to advance, its role in driving economic growth will be a key factor in solving America's deficit problem. Hassett's insights provide a hopeful yet realistic assessment of the challenges ahead.