AI, the retreat from globalisation and economic growth

Google AI Assistant says:

Artificial Intelligence is simultaneously accelerating the retreat from traditional, hyper-globalized supply chains while creating a new, more fragmented form of digital globalization. While 2026 data suggests trade is not disappearing, it is “rewiring” away from centralized, low-cost sourcing toward regional ecosystems driven by AI-enabled automation and national security imperatives.

A question for the moment is will these trends mean a fall in the need for human labour and a crisis in the jobs market. There are various national mechanisms that have been suggested for creating employment. I suggested one in the 1980s, A macroprudential proposal for employment.

A recent government report, Young people and work, finds the number of young people Not in Education, Employment or Training (NEETs) has risen to more than one million, the highest it’s been in 12 years, and there are fewer entry-level jobs.

Local plans should create local jobs, preferably ones that have a beneficial climate and other impacts – such as jobs in local food production.

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