The Rise of Humanoid Robots: Dr. Doom Warns of Job Losses

Davos, Switzerland - As artificial intelligence takes center stage at the World Economic Forum, Nouriel Roubini, known as "Dr. Doom" for his pessimistic economic predictions, is sounding the alarm about the potential impact of humanoid robots on the workforce.

In an interview on Yahoo Finance's Opening Bid podcast, Roubini predicts that within the next few years, humanoid robots will become ubiquitous in various industries, replacing human workers in tasks ranging from manufacturing and construction to hospitality.

"These robots will learn everything that a construction worker, factory worker, or service worker can do," Roubini said. "And they will be able to do it more efficiently and at a lower cost, leading to a massive loss of jobs."

Research from Citi estimates that the humanoid robot market could reach $7 trillion by 2050. Robots like Tesla's (TSLA) Optimus could perform tasks such as cleaning, laundry, and food preparation, automating routine tasks and potentially displacing workers.

Tariffs and Inflation Concerns

Roubini also expressed concern about the potential economic consequences of President Trump's proposed tariffs. He believes tariffs could ignite inflation in the US, leading to a potential interest rate hike by the Federal Reserve.

Goldman Sachs estimates that a 10% across-the-board tariff could raise the Fed's Personal Consumption Expenditures (PCE) index to 3% by late 2025, potentially tightening financial conditions and slowing economic growth.

The IMF warns that tariffs could reduce US gross domestic product (GDP) by 0.4% in 2025 and 0.6% in 2026 if a "sizable swath" of global trade is affected.

Market Volatility

Concerned about the potential inflationary pressures and a delayed rate cut cycle, markets experienced a downturn in early January. The S&P 500 (^GSPC) dropped 1.5%, while the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) fell by 1.6% each.

"If rising tariffs lead to higher inflation, bonds will go higher, the stock market will correct, and the economy will suffer," Roubini warned.