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POLITICS

Jasmine Sun warns AI economic displacement fuels populist violence

Sunday, May 17, 2026 · from 2 podcasts
  • AI's labor destruction drives populist politics for the 2028 election.
  • Executives privately admit the median worker faces a bleak future.
  • Attacks on data centers signal a revolt against infrastructure.

AI is the fastest-rising issue in American polling, even if it still ranks behind cost-of-living concerns. Jasmine Sun observes that savvy politicians are already tying AI to pre-existing platforms. Bernie Sanders uses it to attack billionaires, while others use it to demand stricter speech regulations. It is an all-purpose justification for policies that have stalled for years.

"AI serves the same role that China played in the last decade - a massive, alien force that justifies any policy a politician wants to pass."

- Jasmine Sun, Bankless

This differs from the anti-crypto push because the stakes are higher. Most Americans never used crypto, but they use ChatGPT. The technology is already driving significant GDP growth and appearing in physical neighborhoods through data center construction. Kevin O’Leary’s $15 billion data center project in Utah is facing a populist wall, driven by utility providers informing residents they will stop servicing homes to redirect power. This has driven a 70% disapproval rating for local data center construction.

The industry knows its technology is designed to substitute for human work, not just augment it. Sun reports that while executives pivot to talk about "small business empowerment" during interviews, they privately describe the median person as screwed. They see a future where capital no longer needs humans to produce value.

Public anger is moving from town hall meetings to physical violence. Sun points to recent attacks on tech leaders as a sign that the democratic system is failing to provide an outlet for frustration. When people feel they cannot vote on a technology that changes their life, they resort to direct action.

"If AI can perform any job currently done on a computer, the traditional link between labor and capital breaks."

- Zach Exley, Breaking Points

This radicalization thrives in niche online communities. Young, nihilistic people spend their time in Discords reinforcing the idea that tech leaders are gambling with their children's lives. They believe they are stopping a future catastrophe by acting now.

Sun argues that even a self-interested capitalist should be worried. If a significant chunk of the population feels disempowered and ignored, the threat of riots and political violence grows. Without a new social contract, the only power left to the displaced is the power to break things.

Source Intelligence

- Deep dive into what was said in the episodes

5/14/26: JD Gaslights On Trump Not Caring About US Finances, US Test Scores Plummet, Tucker Humiliates Kevin O'LearyMay 14

  • JD Vance denied President Trump said Americans' financial situations were irrelevant to Iran war decisions, contradicting Trump's clear quote.
  • Producer Price Index jumped 1.4% in April and was up 6% year-over-year, its fastest rise in four years.
  • Consumer Price Index rose 3.8% in April year-over-year, the fastest pace of inflation in nearly three years.
  • Energy prices jumped 7.8% in April after a 10.1% rise in March, with core producer prices up 4-5% from the prior year.
  • Credit card delinquencies 90+ days overdue have skyrocketed over two years, alongside rising mortgage delinquencies.
  • Zach Exley argues AI will replace any job done remotely on a computer, as mundane technical hurdles like memory and screen access are solved.
  • Exley contends capitalism cannot survive AI because it creates a demand doom loop: mass layoffs eliminate customers, causing economic collapse.
Also from this episode: (8)

Macro (1)

  • Wheat futures climbed to daily limits after USDA projected the lowest harvest since 1972 due to drought and climate disruptions.

Education (3)

  • Reading scores were down in 83% of districts and math scores down in 70% compared to a decade earlier, impacting all demographics.
  • Declines began in 2017, worsened by COVID, with modest upticks insufficient to recover lost ground.
  • Three districts defied the trend: DC, Mississippi, and Hawaii.

Society (3)

  • American children now spend up to 19 hours weekly on internet-enabled devices, with little difference between low-tech and tech-encouraging families.
  • Children's independence has dramatically decreased, with far fewer allowed to walk or bike alone without adults.
  • A poll found 70% of Americans oppose a data center built near them, with more preferring a nuclear plant.

Energy (1)

  • Nevada Energy will stop servicing Lake Tahoe homes next year to redirect power to data centers.

Will AI Populism Decide the 2028 Election? | Jasmine SunMay 13

  • Jasmine Sun says AI populism ranks 29th in salience among voter issues but has risen faster than any other issue over the last year according to Blue Rose Research polling.
  • Sun notes politicians like Bernie Sanders tie AI to core economic issues voters care about, framing it as an elite project to be resisted.
  • Sun argues AI populism differs from anti-crypto sentiment because AI drives a larger share of GDP and has higher consumer adoption.
  • Sun cites Anthropic hitting a $30 billion annual run rate and notes AI leaders like Dario Amodei predicting mass job loss lend credibility to populist fears.
  • Sun points to violent attacks on Sam Altman and the healthcare CEO murder as examples of extreme online nihilism, not a unified movement.
  • Sun explains AI industry executives often express bleak private views on job displacement but avoid saying them publicly.
  • Sun steelmans Dario Amodei's job loss argument by saying AI could break the link between human labor and productivity, unlike past automation.
  • Sun's own view expects near-term disruption for easily automated jobs like software engineering, but not an apocalypse, with significant political resentment.
  • Sun observes AI populism coalitions are bipartisan, uniting environmentalists, family-first conservatives, and creatives against tech elites.
  • Sun warns AI super PAC endorsements can become a political liability due to populist sentiment, unlike crypto's Fairshake PAC.
  • Sun suggests policy responses should include longer unemployment insurance, universal healthcare for freelancers, and rethinking education.
  • Sun proposes shortening the work week as a preferable alternative to mass unemployment if AI automation accelerates.
  • Sun advocates for a grand bargain where productivity gains are shared, citing historical union bargaining as a model to avoid backlash.