It can be both. It's not even really "AI" if we're being honest here. AI is just the excuse given for what all companies want to do right now.

The government doesn't need AI to do the slashing and burning, though.

Because the 'trend' of the economy going into the ground has been consistent for decades.

A few years ago the economy was adding a lot of jobs and the wage gains for the poor were rapidly outpacing inflation