The world will be pushed into a recession, but perhaps we can build something more promising from the pieces
The world economy hinges on the success or failure of artificial intelligence. It’s becoming apparent that we are probably doomed either way.
Employment growth is stuck and wage growth is slowing, especially among low-paying jobs. Loan delinquencies are rising, driving an increase in bankruptcies. Consumer confidence has collapsed. And reckless policymaking is taking its toll. Donald Trump’s trade war is cutting farmers’ access to the Chinese market and manufacturers’ access to Chinese rare-earth magnets. His clampdown on migration is hitting access to labor, from agriculture to healthcare. The drawn-out government shutdown is starting to sap economic growth.
Yet all this has been no match for the AI boom. Amid the mire of dismal statistics, the bacchanal of investment by a narrow clutch of technology firms pursuing the dream of superhuman artificial intelligence is single-handedly sustaining economic growth. It is propping up business investment and powering a stock market rally that is sustaining consumer spending and lifting the spirits of the 60% of Americans who own stock.
