The AI Economy

[nsacpi]

The economy is being bolstered by a remarkable investment boom in artificial intelligence. A credible estimate suggests that A.I. capital expenditures may reach 2 percent of the gross domestic product in 2025, up from most likely less than 0.1 percent in 2022. To provide some sense of scale, that means the equivalent of about $1,800 per person in America will be invested this year on A.I.

Without these investments, economic growth this year may have clocked in at around 1 percent. Instead, it is likely to land at almost twice that. Just seven large technology companies are responsible for nearly 60 percent of the gains in the S&P 500 this year.

https://www.nytimes.com/2025/10/06/opinion/ai-growth-economy-jobs-tariffs.html?unlocked_article_code=1.rU8.ZxUp.0BM0TdgYxCfi&smid=url-share

 

[thethe]

And we all get to pay more for electricity as a result

 

[acesfull86]

Investment boom driven by tariff-exempt computers and parts, it should be said.

 

[Tapate50]

Garbage in equals garbage out.

Buyer beware

 

[nsacpi]

It is a bit like railroads in the 19th century. Everyone could grasp that railroads would transform commerce. But there were a lot of bubbles and busts involved in poorly directed investment.

 

[thethe]

It is a bit like railroads in the 19th century. Everyone could grasp that railroads would transform commerce. But there were a lot of bubbles and busts involved in poorly directed investment.

Yeah - we have to keep plowing money into this till it becomes transformational. It will be

 

[nsacpi]

Already is.

 

[thethe]

Already is.

Not a fraction of what it will be in five years.

 

[nsacpi]

Not a fraction of what it will be in five years.

Probably.

 

[chop2chip]

Only chance we have to save ourselves from crippling debt since neither party cares to cut spending.

Sustained 5% GDP growth or bust