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The rise of artificial intelligence has been surrounded by plenty of doom and gloom. Debates about AI inevitably shift to its risk of replacing professionals and even entire industries\u2014from\u00a0doctors<\/a>\u00a0and\u00a0radiologists<\/a>\u00a0to\u00a0Tom Cruise\u2019s \u201cMaverick\u201d in Top Gun<\/em><\/a>.<\/p>\n America\u2019s AI-related anxieties are even\u00a0uniting Democrats and Republicans\u00a0on Capitol Hill. Senate Majority Leader Chuck Schumer\u00a0recently revealed<\/a>\u00a0a bipartisan plan to tackle AI and protect traditional jobs.<\/p>\n While there\u00a0are still many uncertainties about AI\u2019s impact, there is room for positivity when it comes to the economics of flourishing. AI\u2019s current iteration of Large Language Models\u00a0can<\/em>\u00a0strengthen the American Dream by increasing social mobility and decreasing inequality. This potential to foster flourishing should be at the front and center of today\u2019s policymaking discussions.<\/p>\n Starting with the glass half-full, AI has already improved education and learning, providing unprecedented access to knowledge. Besides just access to information, AI algorithms offer personalized learning experiences tailored to individual needs, irrespective of geographic location or socioeconomic background.<\/p>\n Education leads to employment. While concerns about AI\u2019s impact on employment persist, there are still\u00a0more job openings<\/a>\u00a0than\u00a0people looking for work<\/a>.\u00a0Labor force participation<\/a>\u00a0remains very low, showing that more people can and should join the labor market.<\/p>\n The danger of AI automating our jobs is far into the future. Historical evidence suggests that new technologies often complement human capabilities rather than replace them entirely. AI LLMs can augment human intelligence, improving productivity and efficiency across various industries. As a result, individuals can transition into more complex and rewarding roles that require higher-order thinking, creativity, and emotional intelligence. For instance, \u201cnew-collar jobs\u201d are\u00a0on the rise<\/a>, with AI and LLM helping develop skills through non-traditional education paths. This in turn leads to other types of jobs and even new employment categories.<\/p>\n AI can also lower the barriers to entrepreneurship and innovation. AI-powered tools enable entrepreneurs to analyze vast amounts of data, identify market trends, and make informed decisions, leveling the playing field for startups and smaller enterprises. This fosters innovation and drives economic growth, ultimately leading to job creation across various sectors. AI can kickstart an entrepreneurial revolution and create new jobs, which\u00a0still\u00a0represent the most important source of income for people in the future.<\/p>\n In many parts of the world, access to essential services such as healthcare, legal advice, and financial planning is limited, particularly for marginalized communities. Fortunately, AI has the potential to\u00a0bridge this gap<\/a>\u00a0by offering virtual assistance and expert advice. Indeed, AI tools will potentially contribute\u00a0trillions of dollars<\/a>\u00a0to the global economy by 2030.<\/p>\n Flourishing also relies on a wide range of other factors that AI cannot replace or replicate.\u00a0Some of the most important literature in the social mobility field has shown the importance of family structure and parental engagement at a young age. The\u00a0work<\/a>\u00a0of Nobel laureate James Heckman, along with various co-authors, suggests\u00a0parental engagement and early childhood education<\/a>\u00a0are crucial in improving mobility and reducing inequality. Disparities in socioeconomic outcomes during teenage years and later in life can be traced back to early childhood.<\/p>\n Two-parent households lead to more parental engagement, such as reading to children and playing with them. Mellisa Kearney\u00a0calls<\/a>\u00a0it the \u201ctwo-parent privilege.\u201d Lenore Skenazy also\u00a0points<\/a>\u00a0to the importance of free play in developing capabilities at an early age. AI may help parents and kids, but it can\u2019t replicate love.<\/p>\n AI aside, policymakers should also identify other opportunities to boost economic prosperity, especially in terms of entrepreneurship.\u00a0One essential, bipartisan issue is occupational licensing, which\u00a0imposes barriers on certain occupations<\/a>. If those barriers aren\u2019t removed, it won\u2019t matter whether different people learn new skills through AI, when they are not able to act on those new skills. Burdensome occupational licenses have been\u00a0shown<\/a>\u00a0to be detrimental to upward social mobility, increasing income inequality.<\/p>\n