Samo Burja on Growth, Energy, and AI

Artificial intelligence demand acts as a massive "demand shock" that necessitates industrial revolutions across physical sectors, including energy, steel, and construction. Rather than focusing solely on software, the global economy faces a shift where industrial capacity becomes the primary bottleneck. Government fiscal policy, characterized by large-scale capital injection, could serve as effective industrial policy if directed toward building critical AI infrastructure like data centers. While demographic decline and aging populations pose significant headwinds, functional institutions remain the key to successfully navigating these technological transitions. As automation reshapes the labor force, the political utility of the human population—historically tied to tax contributions or military conscription—will undergo profound transformation, forcing states to redefine the sustainability of their welfare systems and institutional structures.