{"id":5773,"date":"2025-10-07T22:34:41","date_gmt":"2025-10-07T22:34:41","guid":{"rendered":"https:\/\/musictechohio.online\/site\/entire-economy-ai-bubble\/"},"modified":"2025-10-07T22:34:41","modified_gmt":"2025-10-07T22:34:41","slug":"entire-economy-ai-bubble","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/entire-economy-ai-bubble\/","title":{"rendered":"The Entire Economy Now Depends on the AI Industry Not Fumbling"},"content":{"rendered":"
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These days, you don\u2019t have to be a Rockefeller financier to know that the US economy is on shaky ground. Utility bills are going through the roof<\/a>, imported goods are skyrocketing in cost<\/a>, and job growth is nonexistent<\/a>. Of course, it doesn\u2019t bode too well that the Rockefeller fellas are trembling too.<\/p>\n

Writing in the <\/a>Financial Times<\/a><\/em>, noted fund manager and former Morgan Stanley investor Ruchir Sharma argued that the US economy has more or less become \u201cone big bet on AI.\u201d<\/p>\n

It\u2019s a bold claim, but it\u2019s not hard to see his case. As many economists have been shouting to the heavens, the numbers are looking increasingly grim as wild tech investments<\/a> keep an otherwise horrendous economy<\/a> aloft.<\/p>\n

As Sharma notes, the billions of dollars being dumped into AI now account for 40 percent of US GDP growth in 2025, with no signs of slowing down. Meanwhile, AI companies\u00a0have accounted for 80 percent of growth in American stocks.<\/p>\n

Even though the stock market isn\u2019t synonymous with the broader economy, Sharma writes that its remarkable growth is drawing in the green stuff from all corners of the globe. In effect, this is stimulating the economy for the ultra-wealthy \u2014 with help from Donald Trump\u2019s \u201cBig Beautiful Bill,\u201d which syphons money to the rich<\/a> \u2014 as we\u2019re seeing now in the consumer economy.<\/p>\n

Though consumption has historically made up the largest section of the total US economy, it\u2019s now dwarfed by AI investments. As the FT <\/em>notes, what remains of consumption is likewise driven by the top ten percent of American earners \u2014 an already wealthy group<\/a> compared to the rest of the world \u2014 who now account for a record-breaking 50 percent of all US consumer spending.<\/p>\n

There are also crises developing in immigration for obvious reasons<\/a>, which has a major impact on productivity, as well as a surge in home foreclosures<\/a> and a huge rise in US government debt<\/a>. Yet despite it all, the headlines remain rosy, thanks entirely to AI.<\/p>\n

\u201cThe main reason AI is regarded as a magic fix for so many different threats is that it is expected to deliver a significant boost to productivity growth, especially in the US,\u201d Sharma writes. \u201c[Investors] appear convinced America is building leads in AI innovation, infrastructure and adoption that cannot be matched.\u201d<\/p>\n

Yet without AI spending, the US would lose one of the last industries<\/a> actually bringing in any coin. In other words, \u201cAI better deliver,\u201d as Sharma warns \u2014 or the whole house of cards<\/a> will soon come crashing down.<\/p>\n

More on AI hype: <\/strong>Cory Doctorow Says the AI Industry Is About to Collapse<\/a><\/em><\/p>\n

The post The Entire Economy Now Depends on the AI Industry Not Fumbling<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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These days, you don\u2019t have to be a Rockefeller financier to know that the US economy is on shaky ground. Utility bills are going through the roof, imported goods are…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,3121,3842],"tags":[],"class_list":["post-5773","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-finance","category-future-society"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/5773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=5773"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/5773\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=5773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=5773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=5773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}