Daron Acemoglu, Nobel laureate and co-author of *Why Nations Fail*, argues U.S. democracy faces existential threats unless two systemic issues are addressed. Speaking to *Fortune*, he frames former President Trump as a symptom of deeper institutional decay rather than the root cause. Acemoglu emphasizes that unchecked AI-driven job losses and escalating wealth inequality could irreparably fracture democratic foundations.

First, Acemoglu highlights AI's role in exacerbating economic disparity. He cites 1.2 million layoffs in 2025—a 58% surge from 2024—with 50,000 directly tied to AI. While California’s proposed $1 billion wealth tax on billionaires aims to curb inequality, Acemoglu deems it insufficient. He advocates for policies ensuring workers across skill levels share in technological progress, warning that current trends risk entrenching a “wealth gap” that destabilizes social cohesion.

Second, he critiques the prioritization of artificial general intelligence (AGI) development, calling it a “misguided agenda” with severe societal consequences. Acemoglu urges a “pro-worker” AI strategy that complements human labor rather than replacing it. Countering this, tech advocate Adam Thierer argues AI’s disruptive potential historically spurs economic renewal, though he acknowledges risks of regulatory overreach stifling U.S. competitiveness with China.

Acemoglu’s analysis underscores a pivotal choice: harness AI to boost productivity without sacrificing jobs or risk accelerating democracy’s decline through unchecked technological and economic upheaval.