Hundreds of billions of dollars are flooding the AI industry. Economist Gerald Epstein says this bubble could burst.

The U.S. economy is heading toward uncharted territory. Artificial Intelligence (AI) is transforming business operations and all areas of finance, the national debt is on an unsustainable fiscal path, and most middle-income Americans cannot keep up with rising costs. Moreover, as hundreds of billions of dollars are flooding into artificial intelligence, there are serious concerns that an AI bubble…

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    • DarkCloud@lemmy.world
      4·
      2 days ago

      You mean “we” will be, not just for the sake of expressing class solidarity but also because amost countries have AI infrastructure in them now, and everyone on the planet is effected by taxes (hell the planet its self is too).

      So yeah we will be having to pay the bill here, and we have to identify with each other so we can find out how to stand as one.

  • Two_Hangmen@midwest.social
    17·
    2 days ago

    “Too big to fail” will continue to be the mantra of socializing costs while privatizing profits, and the idiots of this country will continue to vote for it.

  • mycodesucks@lemmy.world
    10·
    2 days ago

    “Bailout” implies that there’s a period of problems to get through after which the industry will stabilize. It worked for airlines, banks, and auto manufacturers because those companies do something people need and the business can straighten itself out.

    But AI isn’t a necessary industry - it’s a nascent one, and the idea that restructuring and more money can stabilize it is absolute nonsense. If a crash hits, not only will the bill come due, but future potential customers will smell the stink of failure and avoid it, further reducing the likelihood that this shit can ever pay for itself.

    The previous bailouts were IDEOLOGICALLY appalling and awful, and we lost a little money on the airlines and auto industry, but on banks the government actually made around 20 billion in profit on interest - the bank bailouts were a net positive to taxpayers.

    AI will NEVER be able to pay back a bailout. It’s a money pit.

  • Maeve @lemmygrad.ml
    2·
    1 day ago

    The short-term budgetary costs can be met by slashing a bloated and dangerous military budget, reallocating funds now spent on immigration enforcement to immigrant integration, and increases in tax revenue from corporations and higher taxation of great fortunes, as I discuss above.

    TAX BILLIONAIRES AND MULTINATIONAL MEGACORPS OUT OF EXISTENCE!!! 🫩