California Governor Gavin Newsom's 'AI New Deal' executive order expands government oversight of artificial intelligence and proposes benefit programs for displaced workers, but critics argue this represents premature government intervention that ignores data showing AI adoption actually creates new jobs and businesses rather than destroying them, as evidenced by increased software engineer demand and the fact that current compute and energy limitations make mass job replacement impossible in the near term.
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'GET THE HELL OUT OF THE WAY': McDowell SCORCHES Newsom over AI executive orderHinzugefügt:
California Governor Gavin Newsom is capitalizing on growing fears over artificial intelligence unleashing a new executive order to expand government oversight of the technology and grow benefit programs. The Wall Street Journal editorial board is labeling his order as an AI new deal after the governor called on Democrats to create a social safety net for workers replaced by AI. The order directs the government to review how companies are adopting AI and to explore compensation for displaced workers.
>> Dagen, oh, he's stealing an idea from Elizabeth Warren?
That's where you are in your political career?
>> Bet.
>> Good on you. You want to go after AI before it is even like a thing. Before it is as an industry producing Anthropic and Open AI aren't even public yet. Before it is throwing off profits.
You want to stop its growth before it even really starts happening.
That's what politicians are in the game of. We don't need your new deal. We need you and your ilk to get the hell out of the way. And it's not just Gavin Newsom.
Did you see that Florida and the Attorney General sued Open AI and Sam Altman about what is it? Over Is it over the children?
Over >> like that.
>> Yeah, it's about the children or [laughter] just I That is the like you want to bring business to Florida? Don't start suing large um cutting-edge great American companies. How about that?
>> I I Jackie, what confuses me is this idea that AI is coming for our jobs because the data suggests something very different. Now, I know that we're on early innings and it could change, but we've talked about new business formation is accelerating in areas where they are adopting AI. So, if you're adopting AI, you're creating more businesses. The price of a CAT scan has gone down 70% since the year 2000 and so we're doing triple the CAT scans. Um since the introduction of AI, we actually have more radiologists than we did before AI. So, I guess to me, what I don't understand is it seems to go against actually all the hard data that I see.
>> They don't care what the data says.
Gavin Newsom is pedaling a narrative here and that narrative is AI is coming for you. AI is going to get your job so we've got to be ahead of it cuz the government has your back. We're going to fix this for you and we're going to you know, come up with some way to put you on sort of the government role so that you have um some something to fall back on before the big bad monster gets you.
Now, the big bad monster's never coming and then what's going to happen is we end up looking like Europe where you've actually incentivized young people to not work and to be lazy because benefits are there for them. Um so basically, AI would be the scapegoat for Gavin Newsom to introduce more socialist principles into his state and that's what's really happening. Actually, I have more respect for someone like Zohran Mamdani who came out and said, "I'm a I'm a Democratic Socialist." But we all knew what that means and and I was, you know, at least he put it out there and he said, "I'm going to do this and I'm going to do this." And now he's doing it. And we're suffering, but at least we knew what was happening. This is another Gavin Newsom, you know, I'm going to pull the cloak over this. Um same thing with Mamdani's little his little task force there on messaging. It this is a messaging socialist message wrapped up in you should be scared of AI.
>> I think what confuses me, Brian and then Josh Hawley in, the editorial closes out with a warning kind of that Republicans basically Newsom is filling this vacuum.
But the message is working. People are scared that AI is coming and if the GOP don't offer a solution, they're going to respond and say, "Okay, well, Gavin Newsom has a solution and it's universal basic income or whatever this is and this sounds great and I get a payday because.ai and I guess I'm wondering like do we need to come out and have him To me, the message was very clear the other way.
>> What is the solution?
Like if the >> Use AI to create one.
>> government needs to save you >> Right.
>> and you disagree with that, your solution is the government can't save you. That's not a solution. That's just a truth that's played itself out evidently for decades and decades and decades in American life. So, I I don't know what the solution is.
I I I agree that the left wants to make AI bad before people can realize it's good. That's why they wanted they want to get in the way of it becoming good.
But I'm also like the two cheers guy on AI. So, I don't know the the Florida lawsuit very well, maybe a bad lawsuit.
I think AI on the productive side of life is going to be amazing for people.
And I think you want to unleash that and let it rip because it's going to it's going to actually help people at the bottom rise up. I think on the social side of life, there are things about it that I get concerned about because we saw that with social media. And I I again, I'm not saying the Florida lawsuit's good, but maybe the answer is to say it's productively it's going to be great for you and socially we should pay attention because we've seen these games before and we what we've seen what it's done to people. I'm not saying regulation's the answer to that. It's okay to be concerned about that.
>> I don't think we talk enough about the fact that AI can't take all of your jobs right now. There's not enough compute and in for AI to actually be able to do that. There's been a lot of Wall Street research coming out on this doing the math on what it would actually cost to be able to get that much to replace you as a chatbot, and there's not enough available energy in the country right now to replace every worker that could actually be replaced. And that's assuming your company does the math and actually wants to replace you and thinks that it would be worth it. I don't think that conversation has gotten loud enough yet that literally in the next couple years it would not be possible to replace everyone all at once. AI can't just take your job tomorrow. That is not how corporate America works.
>> As David Sacks pointed out, the breakout case for AI in the last year has been coding through Claude Code and Codex.
And there has been a increase and massive increase in demand for software engineers. So, instead of destroying jobs, it has created a need for software engineers because there is more and more businesses now across businesses, applications, and use cases actually writing code. And based on Indeed's job postings, post job postings for software development have skyrocketed along with the coding ability embedded in Claude Code and some uh newer apps. I want to or models.
>> The um leave it there on AI and make a little bit of a hard turn. Um
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