Economist Podcasts – "In the Line of Fires: LA’s Ashen Suburbs One Year On"

Date: January 7, 2026
Host(s): Rosie Blore, Jason Palmer
Key Correspondents: Erin Braun (West Coast), Henry Tricks (US Technology Editor), Alexandra Sewich Bass (Culture Editor)

Episode Overview

This episode of The Intelligence reflects on the aftermath of the devastating 2025 Los Angeles wildfires, examining how communities are recovering a year later. The team explores the complicated intersection of climate risk, insurance, and utility responsibility, while also considering the broader implications for California and comparable regions. The episode further delves into how AI will impact future job markets, and trends signaling the peak (and possibly decline) of global wine consumption.

Segment 1: Los Angeles Wildfires – The Human and Systemic Toll

Featured: Erin Braun, Damon & Audra Blunt
[01:42–10:15]

First-Hand Survivor Accounts

• Damon Blunt recalls the harrowing moment of evacuation:

  “I laid down to take a nap, and the next thing I know, he woke me up and he said, we have to leave and we have to leave now. And that was around that 3am exactly.”
  (Damon Blunt, 01:42)

• The Blunts’ experience — their house and newly renovated neighborhood in Altadena reduced to an empty dirt lot.

  “We had everything landscaped. We had, like, the lighting done. I mean, it was, it was truly our, our little piece of, of heaven, my sanctuary.”
  (Damon Blunt, 02:30)

• Mixed emotions as rebuilding begins:

  “You’re happy for the neighbors that their stuff is going up, but… you keep asking yourself, you know, how much more red tape do I have to go through? How many more times do I have to talk to the insurance company?”
  (Audra Blunt, 02:51)

Scale and Health Impacts

• Fires began January 7, 2025:
  • 31 killed, >16,000 buildings destroyed
  • 14 more died from smoke exposure
  • 46% surge in ER heart attack symptoms in the following 90 days

  “It can take years or even decades for a city to fully recover from fires like this.”
  (Erin Braun, 03:14)

Recovery Realities & Forecast

• Permitting is often a bottleneck in LA, but rebuilding is underway:
  • By December, ~15% of destroyed buildings had permits approved
  • Expectation for a "building boom" in March when rains subside
  • Early rebuilding highlights two “pinch points”: insurance and utility liability

The Insurance Squeeze

• Chronic underinsurance in fire-prone LA neighborhoods
• Wealthier areas (e.g., Pacific Palisades) faring better; can self-fund rebuilding
• Altadena’s middle-class residents face mortgage and rent burdens, sometimes forced to sell to developers

  “Altadena is not for sale.” (a slogan seen on local yard signs, 06:29)

• Ballot measures (Prop 103, 1988) kept rates low, inadvertently encouraging risky construction

The Utility Blame Game

• Palisades fire suspected arson; alleged perpetrator charged
• Altadena fire: Southern California Edison (SoCal Edison) admitted probable causation via equipment failure
• Ongoing litigation from survivors, federal, and county governments
• Edison offers early settlements if victims forgo lawsuits; California replenishes utility wildfire fund (ratepayers and shareholders pay)

  “A lot of survivors I spoke with are completely depending on a prospective settlement to finance the rebuild of their homes.”
  (Erin Braun, 08:22)

Looking to 2026

• Hope for rebuilding momentum and more permits post-winter
• Emotional toll of displacement:

  “It was the first time in 26 years they haven’t been in their home for the holidays…they are really hoping that by next Christmas they’ll be back in their house.”
  (Erin Braun, 09:53)

Segment 2: Artificial Intelligence — Job Losses or Job Creation?

Featured: Henry Tricks, Rosie Blore
[11:06–18:53]

Rethinking the "AI Apocalypse"

• Widespread anxiety over AI causing mass unemployment
• New demand for roles created by AI’s need for human guidance

  “As with most technologies, there will be winners and losers. Tech is already creating demand for new roles.”
  (Henry Tricks, 11:41)

Emerging Job Roles

• Data Annotators: Once gig-workers, now more specialist roles (medicine, finance) to help train AI for specific workflows

• Forward Deployed Engineers: Customizing and embedding AI tools for client organizations (highly paid but little-known)

• AI Risk & Governance Specialists: Fastest growing IT job in developed countries—ensure bots operate safely and ethically

  “Their job is basically to ensure that the bots don’t leak data or cause a company’s operations to crash.”
  (Henry Tricks, 15:00)

• Chief AI Officer: Leadership role, oversees multiple AI models and vendor relationships; wrangling complexity

  “The idea of harnessing these agents, you need to basically stop them trampling over the company and over the company’s reputation.”
  (Henry Tricks, 15:49)

Why Human Skills Remain Crucial

• Even as automation grows, human oversight is vital
• Example: Robo taxis and disaster scenarios
• "Bedside manner" just as important as technical nous

  “You need to have a bedside manner as well as the ability to understand what the technology is doing and where it’s going wrong.”
  (Henry Tricks, 17:13)

The "AI Bubble" and Future Outlook

• AI not yet self-sustaining at scale; still dependent on humans
• Real risk isn’t a bust, but that AI will eventually replace more of these human jobs—but not for some time

  “It’s vital to keep humans in the loop, checking the agent’s homework if you like.”
  (Henry Tricks, 17:51)

Segment 3: World Ahead — Has the World Hit Peak Wine?

Featured: Alexandra Sewich Bass, Rosie Blore
[19:13–24:42]

The Fall from Hemingway's Era

• Global wine consumption peaked in 2014; down ~10% by 2024, with 2026 decline forecast
• Wine experiencing a secular (not cyclical) decline

  “For the first time in modern history, wine is experiencing a secular decline. People are just drinking less of it.”
  (Alexandra Sewich Bass, 19:24)

Drivers: Health, Demographics, and Changing Culture

• Health consciousness: shift to lower-ABV alternatives (canned cocktails, seltzers), more “alcohol-free days”
• Demographic shifts:
  • Western, aging populations = shrinking core drinker base
  • Rising countries often have lower demand (e.g., Muslim-majority countries)
• Baby boomers "aging out"

  “A very funny analyst mentioned that they’re going to the tasting room in the sky.”
  (Alexandra Sewich Bass, 21:20)

• Younger generations less attached, some opting for micro-dosing or sobriety
• Trends: “California sober” (drugs, no alcohol), fitness tech spotlight on alcohol’s impact

The Industry Outlook

• Expect more industry consolidation, some agricultural repurposing of vineyards
• Focus on Bordeaux as benchmark for fine wine’s future
• Not all bad news: fine wine demand more robust, likened to Swiss watches as a status symbol

  “Fine wine…likened to Swiss watches…People want that status symbol.”
  (Alexandra Sewich Bass, 23:46)

• Good news for remaining wine lovers: better deals and wider choice

Notable Quotes & Memorable Moments

• Damon Blunt (01:42): “We have to leave and we have to leave now.” – underscores the sudden trauma of wildfire evacuation.
• Audra Blunt (02:51): “You keep asking yourself…how much more red tape do I have to go through?”
• Erin Braun (03:14): “It can take years or even decades for a city to fully recover from fires like this.”
• Henry Tricks (15:00): “Their job is basically to ensure that the bots don’t leak data or cause a company’s operations to crash.”
• Alexandra Sewich Bass (21:20): “…they’re going to the tasting room in the sky.”

Timestamps for Important Segments

• 01:42 — Wildfire survivors recount evacuation and loss
• 03:14 — Erin Braun details the true scale of wildfire damage
• 05:22 — Analysis of insurance market issues post-fire
• 08:22 — Utility (SoCal Edison) blamed for fire, settlements discussed
• 11:06 — The looming “AI jobs apocalypse” reframed: new roles emerging
• 13:08 — Human input remains necessary for AI training, especially for specialized fields
• 15:00 — The critical role of AI risk and governance specialists
• 17:13 — Human “bedside manner” irreplaceable in AI-human collaboration
• 19:24 — Wine’s secular decline explained: demographics, culture, health
• 23:46 — The future: wine as a luxury niche, opportunities for enthusiasts

Conclusion

This episode offers a sobering look at the long-term consequences of natural disasters—not just in terms of loss, but also the complex economic, legal, and social webs that survivors must navigate. It highlights how systemic challenges in insurance and corporate accountability shape recovery, while broader discussions remind listeners that technology and culture continue to reshape our livelihoods and lifestyles. The reflections on AI and wine consumption show that "after the fire"—sometimes quite literally—change can come in unexpected ways, challenging familiar narratives about jobs, community, and consumption.