Video News/In Focus with Jeremy Szafron

Steve Hanke, Professor of Applied Economics at Johns Hopkins University, challenged the growing narrative that artificial intelligence will deliver a disinflationary boom, arguing that the thesis is disconnected from monetary reality. Speaking with Kitco News, Hanke said Silicon Valley’s messaging downplays inflation risks tied to money supply growth while promoting policies designed to sustain the current investment cycle. Hanke criticized proposals tied to AI-driven disruption, particularly the idea of permanent income support, calling it “a pure socialist policy.” He argued that such frameworks ignore the monetary consequences of sustained fiscal transfers and pointed to Europe as a large-scale example of welfare systems evolving toward permanent income structures.