North Island's Glenn Hutchins on the economy, strength of the labor market and impact of AI

Summary

Glenn Hutchins of North Island joins Squawk Box ahead of the jobs report to discuss the economy, AI, labor markets, and fiscal policy. He argues companies are already extracting value from cloud, big data, and machine-learning investments, while AI investment should follow a J-curve and eventually explode in productivity. He warns AI-driven productivity may worsen unemployment and underemployment, and that unsustainable global deficits create fiscal/financial dominance that pressures central banks to keep rates down. He favors hedges such as gold, silver, Bitcoin, TIPS, and dollar-hedged US equities, and highlights the data center buildout and supply chain as a current boom.

• Glenn Hutchins joins Squawk Box ahead of the December jobs report.
• He sees companies extracting value from cloud, big data, and machine-learning investments.
• AI investment may follow a J-curve but could eventually explode in productivity.
• He expects AI to worsen unemployment and underemployment and increase social distress.
• He warns unsustainable global deficits could lead to fiscal/financial dominance.
• He favors gold, silver, Bitcoin, TIPS, and dollar-hedged US equities as hedges.
• Data center construction and its supply chain are described as a current boom.
• The next Fed chair will face an unusually difficult policy environment.