Re: "AI adoption accelerates, but maturity lags", (Business, July 16).
It's a foregone conclusion that AI will eliminate many jobs in the future, especially white-colour jobs. As it's already happening, just one example: high-paying computer code/software writers.
There will be many more to come. This will only accelerate exponentially in the years to come.
The result will be a huge shortfall in labour tax receipts, especially by developed economies like the US. Note that in the US, some 66% of total tax receipts in the year 2024 (source: Rand analysis) came from individuals paying, so a gigantic tax shortfall will increasingly emerge.
This is right at the same time when such governments are running enormous record budget deficits, while increasing military spending galore.
Stock and bond markets are always forward-looking and will see that such mega tax revenue shortfalls will only exacerbate the "crowding-out effect" in government debt markets, thereby increasing interest rates.
Which, by definition, likely affects stock and bond prices.
Paul A Renaud
Calculated chaos
Re: "US, Iran trade blows as war reignites", (World, July 17).
President Trump started a war with Iran without consulting his Nato allies, and is now expecting them to help him after this war turned sour.
His presidency reminds one of the madman theory. A political strategy in which a leader consciously plays to appear irrational, unstable, and unpredictable. The goal is to intimidate its opponents, making them more inclined to yield out of fear of extreme, irrational actions.
The result? His quivering European Nato vassal states are licking their economic wounds, scaling back their welfare system due to mandatory/enforced spending 150% more on their defence, higher oil prices, and expenditure on the proxy war between Russia and Ukraine.
Nato's submissive Secretary General Rutte is in Mr Trump's pocket; global trade was upset; his adversary China was deprived of Iranian oil; and collateral damage for the upcoming Indian economy, denying it Iran's oil, was welcomed.
Meanwhile, Mideast countries were wrecked since they are not able to export their oil due to bombing of their oil refineries and American bases, and the closure of the Strait of Hormuz by Iran. All in all, the US came out as the big winner with its divide-and-rule politics: money is pouring in from oil and gas exports, weaponry, and trade tariffs.
For your readers to ponder whether Mr Trump is a boorish and lunatic psychopath, as he's made out to be by world leaders and experts, or a genius.
S de Jong
