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Exposed Twice: AI, Labor, and the Public Purse

Most of the debate about AI and labor markets is a debate about workers. Almost none of it is about the entity standing quietly behind every payroll. Moving from employment-share exposure to labor-tax-revenue exposure changes which occupations matter — and which policies do. Results draw on ongoing joint work with Dhushyanth Raju applying the Richmond (2026) AI transition framework to Türkiye's 2024 Household Labour Force Survey Most of the debate about AI and labor markets is a debate about workers: who gets displaced, who gets augmented, who gets retrained. Almost none of it is about the entity standing quietly behind every payroll: the treasury. Governments in most middle- and high-income countries raise roughly half of their revenue from labor — personal income tax plus social security contributions. If AI-driven capital deepening shifts factor income from labor toward capital, that base erodes at precisely the moment demand for social spending r...
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Six Questions for a Billion-Dollar Promise

A Skeptic’s Guide to Economic Impact Claims A Skeptic’s Guide to Economic Impact Claims Six questions anyone can ask about the economic promises attached to a big development — and what I learned building the model that produced them. When a large project comes to your county, it arrives with a number. Billions in economic impact. Thousands of jobs. Tens of millions in new revenue. That number is almost always paid for by the people who want the project approved, calculated using software whose workings are not public, and presented to a council as settled fact. Residents get to react to it. They almost never get to check it. Last year I built an economic model of Montgomery County, Maryland, from public data. It estimates what a given amount of spending actually does to the local economy. Building it taught me something more useful than any of its own numbers: the specific places where impact claims go wrong, and how to spot them without needing a mo...

The Labor Market Impacts of AI in Türkiye: Beyond Occupational Exposure Analysis

Beyond Exposure AI and Labor Markets · Türkiye Occupational exposure to AI identifies where technology may affect work, but not whether employment will contract, reorganize, or expand. Applying the Richmond (2026) AI Jobs Transition Framework to Türkiye's 2024 Household Labour Force Survey, the dominant high-exposure archetype is not automation. It is reorganization. Mpumelelo Nxumalo and Dhushyanth Raju · Summary of the working paper Beyond Exposure: AI and Labor Market Reorganization in Türkiye Most discussion of AI and jobs runs on a single number: how much of an occupation's task content a model can perform. That number identifies where technology reaches. It does not say what happens next. An exposed occupation may shed workers, or it may keep them while the work itself is rebuilt around the technology. Those are different outcomes, they call for different policy, and exposure alone cannot tell them apart. Applying the Richmond (202...

Tensions and Global Supply Chain Restructuring

Executive Summary Between 2017 and 2025, U.S. trade policy underwent two dramatic transformations. The 2018-19 trade war elevated tariff rates from 1.5% to 6% . Then in 2025, tariffs spiked to 52% before reversing to 13% . China's import share collapsed from 21.6% to 8.7% , while Mexico and Vietnam captured market share across all categories. Part I: The Tariff Timeline 2017 Baseline: Era of Low Tariffs U.S. average tariff rate: 1.5% — lowest in modern history Reflected decades of trade liberalization through WTO framework 2018-19 Trade War: First Escalation July 2018: First Section 301 tariffs (25% on $34B Chinese imports) → rate jumps to 2.8% ...