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HONEST ECONOMICS Melissa Carleton HONEST ECONOMICS Melissa Carleton

AI-Driven Power Dynamics: A New Era in the Long History of U.S. Labor Rights

The article argues that today’s difficult job search is not a temporary Gen Z shock but a structural shift in bargaining power toward employers as AI reduces labor demand. After the post-COVID tech hiring boom, overhiring unwound into layoffs and tighter openings. Long jobless spells and weak outside options make workers quieter at work. As automation substitutes for routine tasks, workers accept weaker pay and terms, cling to jobs out of fear and report burnout.

It situates this in a longer U.S. arc where labor protections expanded in the mid-20th century then eroded after the 1980s as unions weakened and capital gained leverage. AI is framed as an accelerant that can decouple growth and profits from job creation. The piece calls for policy responses including UBI, UBE and sovereign wealth dividends to restore baseline security and worker bargaining power.

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