Hunter Biden Warns of Potential ‘Mass Extinction Event’ in U.S. Job Market Due to AI
In a recent interview, Hunter Biden, son of former President Joe Biden, raised a compelling alarm about the radically transformative impact of artificial intelligence (AI) on the American job market. He painted a concerning picture, suggesting that the mass adoption of AI technology could lead to what he described as a “mass extinction event” for jobs in the U.S., projecting a staggering loss of around 3.5 million positions nationwide.
The Fast Food Industry Under Siege
Biden shared a striking example during his talk with YouTuber Andrew Callaghan. He recounted a conversation with a fast food franchise owner who transitioned to a fully automated system. This shift required an investment of approximately $2 million for each McDonald’s location. The result? Employment plummeted from 55 workers to just five, significantly enhancing profit margins by around 27%. Biden calculated that if all 13,500 McDonald’s locations in the U.S. adopted similar automation, the employment fallout could result in a loss of roughly 670,000 jobs in the fast food sector alone.
But the implications extend far beyond McDonald’s. With other chains such as Burger King, Wendy’s, and Taco Bell following suit, Biden estimates that the total job reductions in the fast food industry could soar to 3.5 million roles within five years, if not sooner.
Understanding the ‘Mass Extinction Event’
Biden’s insights echo broader concerns surrounding AI’s rapid deployment in various sectors. He emphasized that we are at a critical juncture, where the trajectory of AI could either lead to widespread job loss or usher in a new era of innovation. He stated, “I’ve flipped my thinking about this whole AI thing: you’re either going to have a mass extinction event, or it’s going to be really good with a rough patch in the middle.” While he envisioned potential breakthroughs—like advances in nuclear fusion powered by AI advancements—he also acknowledged the inherent uncertainties.
The Bureau of Labor Statistics supports his concerns, noting that approximately 3.68 million individuals were employed in the fast food and counter service sectors as of May 2023. If AI continues to replace workers at such a scale, the ramifications could result in a significant uptick in unemployment.
Widespread Concerns Among Experts
Biden is not alone in his fears. OpenAI CEO Sam Altman faced a poignant inquiry during a podcast, asking, “How will people survive?” His answer, “I don’t know, neither does anybody else,” underscored the prevailing unease around the transformative power of AI.
Some experts have proposed measures like universal basic income (UBI) to alleviate potential economic distress. UBI involves regular cash payments to all citizens, irrespective of employment status. Despite its promise, critics argue that UBI might either disincentivize work, exacerbate inflation, or encounter formidable political resistance.
Navigating the Changing Landscape of Employment
As AI continues to disrupt traditional job roles, individuals are left wondering how to safeguard their financial futures. Many investors have turned to assets that provide passive income to maintain stability regardless of employment status.
Real Estate: A Reliable Income Stream
Owning rental properties has long been a favored method of generating recurring income. Rental income can offer a steady cash flow, and real estate often serves as a hedge against inflation, as both property values and rents tend to increase alongside the cost of living.
However, being a landlord can be demanding—screening tenants, collecting rent, and managing maintenance can be overwhelming responsibilities. Thankfully, platforms like Mogul enable investors to engage in real estate without the burdens of property management. Mogul offers fractional ownership opportunities in top-tier rental properties, granting investors access to monthly income and appreciable assets without the hefty initial investment.
Another excellent option is First National Realty Partners, focusing on grocery-anchored commercial properties. With a minimum investment of $50,000, investors can own a piece of properties leased by household names like Whole Foods and Walmart, benefiting from stable returns while avoiding landlord responsibilities.
Protective Strategies Amid Uncertainty
While Biden’s stark predictions about a possible mass extinction event may loom large, individuals can still take proactive measures to protect their financial futures. During economic uncertainties, many turn to gold as a safe haven. As Ray Dalio, founder of Bridgewater Associates, notes, “People don’t have, typically, an adequate amount of gold in their portfolio. When bad times come, gold is a very effective diversifier.”
Investing in gold IRAs can provide a tax-advantaged way to secure retirement savings against economic fluctuations. Priority Gold, for instance, offers opportunities to invest in physical gold while enjoying tax benefits.
Conclusion
As Hunter Biden highlights the potential for a “mass extinction event” in the job market due to the rise of AI, it’s imperative for Americans to assess their financial strategies. While the urgency surrounding AI’s impact on employment feels daunting, individuals can leverage various investment opportunities, from real estate to gold, to bolster their financial resilience. As the landscape continues to evolve, being adaptable and prepared is crucial for weathering whatever the future may hold.