The AI bubble and the US economy
The AI boom masks stagnation and the cost-of-living crisis in the US economy, explains Michael Roberts.
The US stock market continues to hit new record highs; the bitcoin price is also close to highs and the gold price has rocketed to all-time highs.
Investors in financial assets (banks, insurance companies, pension funds, hedge funds etc) are wildly optimistic and confident about financial markets. As the chair of Rockefeller International, Ruchir Sharma put it: “Despite mounting threats to the US economy — from high tariffs to collapsing immigration, eroding institutions, rising debt and sticky inflation — large companies and investors seem unfazed. They are increasingly confident that…
