Treasury Secretary Scott Bessent and Federal Reserve Chair Kevin Warsh are betting that AI-driven productivity will make America richer and deflationary enough to ease worries about the $40 trillion national debt.

However, the statistics backing up the optimism are far more skewed: the labour share of income in the US is already down to 52.8%, the lowest seen by the government since it began measuring in 1947.

Business profit margins, meanwhile, reached an all-time high of 14.9%. As........

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