Government Should Foster Entrepreneurship to Counter AI Job Displacement
Source: Mark Mazman. "How To Fuel Entrepreneurship And Counter AI-Driven Job Loss." June 11, 2026. thefederalist.com
The Gist
As AI eliminates jobs, the government should help displaced workers start businesses by creating programs that connect them with mentors and funding. This would turn a potential crisis into an opportunity for economic growth.
Conclusion
Federal, state, and local governments should partner with the private sector to create mentorship and capital access programs for new entrepreneurs to counter AI-driven job displacement
Premises
- AI will displace about 20% of the global workforce by 2030, creating a labor migration rather than job extinction
- Displaced workers will be more willing to accept entrepreneurship risks due to changing employment circumstances
- Most entrepreneurs are aspirational middle-class people who lack business expertise in areas like licensing, taxes, and capital raising
- Existing professionals (lawyers, accountants, financial advisors) could provide mentorship if given proper incentives
- Access to capital is the single biggest barrier to success for emerging businesses, as banks are reluctant to lend to new entities
- Private equity funds benefiting from carried-interest tax benefits could be required to reserve funds for startup investment
- Small businesses are major sources of innovation, employment, and wealth creation that benefit the overall economy
Assumptions
- AI displacement will create entrepreneurial opportunities rather than permanent unemployment
- Government intervention in private markets can be effective and beneficial
- Professional service providers would participate in mentorship programs if incentivized
- Small business success translates to broader economic benefits
- The middle class can be revitalized through entrepreneurship