Economist Kaushik Basu warns AI may cause a 'gated recession'

soumitrashukla9 · x · 2026-08-25

Former World Bank chief economist Kaushik Basu argues that AI and digital technology risk creating a 'gated recession': while the aggregate economy shows no recession or stagflation, a large segment of the population and economy gets trapped in one. Citing examples from the US and India, he urges economists and journalists to probe the misery hidden by aggregate income statistics.

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