Ed Ludlow

In US productivity, I always go with the Bureau of Labor Statistics measure of output per hour x non-farm business sector.

And if you look at the data over 50 years, that chart was really interesting, the side by side of electricity and AI.

Over 50 years, the average quarterly reading is about 1.9% annual rate on productivity.

But something's happened in the last 10 quarters where it's higher.

Yes.

You know, just under 3%, 2.7%.

Do we really know what that is?

And is it AI?

Broadly, people want to see and understand how AI impacts workforce.

And more recently, maybe inflation.

So if we go back to the 90s and what Greenspan saw in productivity gains contributing to economic growth,

there was a consideration around both of those things.

You said that it's not the playbook to go back to what happened in the 90s and apply today, but what do you see in those things?

Is it possible that AI is driving productivity gains resulting in economic growth, but without the inflation?

I'm going to jump ahead to data center.

I've been saving it to the end, but it's highly relevant to San Jose, the build out of data center.

Very recently, the CEO of PG&E, Patty Poppy, came on the program and made the argument that

It's possible that the data center build out within PG&E's jurisdiction actually brings down wholesale electricity prices because the hyperscalers take on the capital burden.

And they are buyers in aggregate of electricity.

But many people, your constituents in the 12th district, will find it hard to see that argument playing out.