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by anon373839 16 days ago
> so much of US economy is invested in AI.

This is a talking point that plays into the frontier labs' desire to be seen as "too big to fail". While yes, several hundred billion dollars have been invested in AI, (a) much of this is in the form of circular Monopoly-money deals, and (b) the US GDP is over $30 trillion annually. The real economy - the one that makes food, builds homes, provides medical care, etc. - is so much bigger and more important than the AI industry.

That's not to say that an (inevitable?) AI crash won't be the spark that ignites a big recession. We are well overdue for one.

2 comments

The "real economy" in the US is in complete shambles right now while everyone is distracted by AI meme money.
> The real economy - the one that makes food, builds homes, provides medical care, etc. - is so much bigger and more important than the AI industry.

The real economy has seen pretty poor growth under Trump tariffs chaos though and I'm not sure the US economy could survive a crash of the tech companies