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AI is propping up the US economy

AI is propping up the US economy

142 comments

·August 5, 2025

jackcosgrove

I'm not sure the comparison is apples to apples, but this article claims the current AI investment boom pales compared to the railroad investment boom in the 19th century.

https://wccftech.com/ai-capex-might-equal-2-percent-of-us-gd...

> Next, Kedrosky bestows a 2x multiplier to this imputed AI CapEx level, which equates to a $624 billion positive impact on the US GDP. Based on an estimated US GDP figure of $30 trillion, AI CapEx is expected to amount to 2.08 percent of the US GDP!

Do note that peak spending on rail roads eventually amounted to ~20 percent of the US GDP in the 19th century. This means that the ongoing AI CapEx boom has lots of legroom to run before it reaches parity with the rail road boom of that bygone era.

tripletao

> Do note that peak spending on rail roads eventually amounted to ~20 percent of the US GDP in the 19th century.

Has anyone found the source for that 20%? Here's a paper I found:

> Between 1848 and 1854, railroad investment, in these and in preceding years, contributed to 4.31% of GDP. Overall, the 1850s are the period in which railroad investment had the most substantial contribution to economic conditions, 2.93% of GDP, relative to 2.51% during the 1840s and 2.49% during the 1830s, driven by the much larger investment volumes during the period.

https://economics.wm.edu/wp/cwm_wp153.pdf

The first sentence isn't clear to me. Is 4.31 > 2.93 because the average was higher from 1848-1854 than from 1850-1859, or because the "preceding years" part means they lumped earlier investment into the former range so it's not actually an average? Regardless, we're nowhere near 20%.

I'm wondering if the claim was actually something like "total investment over x years was 20% of GDP for one year". For example, a paper about the UK says:

> At that time, £170 million was close to 20% of GDP, and most of it was spent in about four years.

https://www-users.cse.umn.edu/~odlyzko/doc/mania18.pdf

That would be more believable, but the comparison with AI spending in a single year would not be meaningful.

jefftk

> Do note that peak spending on rail roads eventually amounted to ~20 percent of the US GDP in the 19th century.

When you go so far back in time you run into the problem where GDP only counts the market economy. When you count people farming for their own consumption, making their own clothes, etc, spending on railroads was a much smaller fraction of the US economy than you'd estimate from that statistic (maybe 5-10%?)

onlyrealcuzzo

I don't know if the economy could ever be accurately reduced to "good" or "bad".

What's good for one class is often bad for another.

Is it a "good" economy if real GDP is up 4%, the S&P 500 is up 40%, and unemployment is up 10%?

For some people that's great. For others, not so great.

Maybe some economies are great for everyone, but this is definitely not one of those.

This economy is great for some people and bad for others.

marcus_holmes

Agree completely. The idea that an increasing GDP or stock market is always good has taken a beating recently. Mostly because it seems that the beneficiaries of that number increase are the same few who already have more than enough, and everyone else continues to decline.

We need new metrics.

fc417fc802

> Is it a "good" economy if real GDP is up 4%, the S&P 500 is up 40%, and unemployment is up 10%?

In today's US? Debatable, but on the whole probably not.

In a hypothetical country with sane health care and social safety net policies? Yes that would be hugely beneficial. The tax base would bear the vast majority of the burden of those displaced from their jobs making it a much more straightforward collective optimization problem.

decimalenough

There is obvious utility to railroads, especially in a world with no cars.

The net utility of AI is far more debatable.

rockemsockem

I'm continually amazed to find takes like this. Can you explain how you don't find clear utility, at the personal level, from LLMs?

I am being 100% genuine here, I struggle to understand how the most useful things I've ever encountered are thought of this way and would like to better understand your perspective.

tikhonj

Can't speak for anyone else, but for me, AI/LLMs have been firmly in the "nice but forgettable" camp. Like, sometimes it's marginally more convenient to use an LLM than to do a proper web search or to figure out how to write some code—but that's a small time saving at best, it's less of a net impact than Stack Overflow was.

I'm already a pretty fast writer and programmer without LLMs. If I hadn't already learned how to write and program quickly, perhaps I would get more use out of LLMs. But the LLMs would be saving me the effort of learning which, ultimately, is an O(1) cost for O(n) benefit. Not super compelling. And what would I even do with a larger volume of text output? I already write more than most folks are willing to read...

So, sure, it's not strictly zero utility, but it's far less utility than a long series of other things.

On the other hand, trains are fucking amazing. I don't drive, and having real passenger rail is a big chunk of why I want to move to Europe one day. Being able to get places without needing to learn and then operate a big, dangerous machine—one that is statistically much more dangerous for folks with ADHD like me—makes a massive difference in my day-to-day life. Having a language model... doesn't.

And that's living in the Bay Area where the trains aren't great. Bart, Caltrain and Amtrak disappearing would have an orders of magnitude larger effect on my life than if LLMs stopped working.

And I'm totally ignoring the indirect but substantial value I get out of freight rail. Sure, ships and trucks could probably get us there, but the net increase in costs and pollution should not be underestimated.

decimalenough

I actually do get clear utility, with major caveats, namely that I only ask things where the answer is both well known and verifiable.

I still do 10-20x regular Kagi searches for every LLM search, which seems about right in terms of the utility I'm personally getting out of this.

bluefirebrand

> Can you explain how you don't find clear utility, at the personal level, from LLMs?

Sure. They don't meaningfully improve anything in my life personally.

They don't improve my search experience, they don't improve my work experience, they don't improve the quality of my online interactions, and I don't think they improve the quality of the society I live in either

agent_turtle

There was a study recently that showed how not only did devs overestimate the time saved using AI, but that they were net negative compared to the control group.

Anyway, that about sums up my experience with AI. It may save some time here and there, but on net, you’re better off without it.

kazinator

Gemini wasted my time today assuring me that if I want a git bundle that only has the top N commits, yet is cleanly clone-able, I can just make a --depth N clone of the original repo, and and do a git bundle create ... --all.

Nope; cloning a bundle created from a depth-limited clone results in error messages about missing commit objects.

So I tell the parrot that, and it comes back with: of course, it is well-known that it doesn't work, blah blah. (Then why wasn't it well known one prompt ago, when it was suggested as the definitive answer?)

Obviously, I wasn't in the "the right mindset" today.

This mindset is one of two things:

- the mindset of a complete n00b asking a n00b question that it will nail every time, predicting it out of its training data richly replete with n00b material.

- the mindset of a patient data miner, willing to expend all they keystrokes. needed to build up enough context to in effect create a query which zeroes in on the right nugget of information that made an appearance in the training data.

It was interesting to go down this #2 rabbit hole when this stuff was new, which it isn't any more. Basically do most of the work, while it looks as if it solved the problem.

I had the right mindset for AI, but most of it has worn off. If I don't get something useful in one query with at most one follow up, I quit.

The only shills who continue to hype AI are either completely dishonest assholes, or genuine bros bearing weapons-grade confirmation bias.

Let's try something else:

Q: "What modes of C major are their own reflection?"

A: "The Lydian and Phrygian modes are reflections of each other, as are the Ionian and Aeolian modes, and the Dorian and Mixolydian modes. The Locrian mode is its own reflection."

Very nice sounding and grammatical, but gapingly wrong in every point. The only mode that is its own reflection is Dorian. Furthermore, Lydian and Phrygian are not mutual reflections. Phrygian reflected around is root is Ionian. The reflection of Lydian is Locrian; and of Aeolian, Mixolydian.

I once loaded a NotebookLM with materials about George Russel's concept of the Lydian Chromatic, and Tonal Gravity. It made an incomprehensible mess of explaining the stuff, worse than the original sources.

AI performs well on whatever is the focus of its purveyors. When they want to shake down entry-level coding, they beef it up on entry-level coding and let it loose, leaving it unable to tell Mixolydian from mixing console.

harimau777

I think that there's a strong argument to be made that the negatives of having to wade through AI slop outweights the benefits that AI may provide. I also suspect that AI could contribute to enshittification of society; e.g. AI therapy being substituted for real therapy, AI products displacing industrial design, etc.

skybrian

Computing is fairly general-purpose, so I suspect that the data centers at least will be used for something. Reusing so many GPU's might be harder, but not as bad as ASICs. There are a lot of other calculations they could do.

kazinator

> Reusing so many GPU's might be harder

It could have some unexciting applications like, oh, modeling climate change and other scientific simulations.

blibble

a data centre is a big warehouse

the vast expense is on the GPU silicon, which is essentially useless for compute other than parallel floating point operations

when the bubble pops, the "investment" will be a very expensive total waste of perfectly good sand

gruez

>The net utility of AI is far more debatable.

I'm sure if you asked the luddites the utility of mechanized textile production you'd get a negative response as well.

no_wizard

Luddites weren’t anti technology at all[0] in fact they were quite adept at using technology. It was a labor movement that fought for worker rights in the face of new technologies.

[0]: https://www.newyorker.com/books/page-turner/rethinking-the-l...

decimalenough

Railroads move people and cargo quickly and cheaply from point A to point B. Mechanized textile production made clothing, a huge sink of time and resources before the industrial age, affordable to everybody.

What does AI get the consumer? Worse spam, more realistic scams, hallucinated search results, easy cheating on homework? AI-assisted coding doesn't benefit them, and the jury is still out on that too (see recent study showing it's a net negative for efficiency).

trod1234

Apples to oranges.

Luddites weren't at a point where every industry sees individual capital formation/demand for labor trend towards zero over time.

Prices are ratios in the currency between factors and producers.

What do you suppose happens when the factors can't buy anything because there is nothing they can trade. Slavery has quite a lot of historic parallels with the trend towards this. Producers stop producing when they can make no profit.

You have a deflationary (chaotic) spiral towards socio-economic collapse, under the burden of debt/money-printing (as production risk). There are limits to systems, and when such limits are exceeded; great destruction occurs.

Malthus/Catton pose a very real existential threat when such disorder occurs, and its almost inevitable that it does without action to prevent it. One cannot assume action will happen until it actually does.

harimau777

I mean, for them it probably was.

shadowgovt

With this generation of AI, it's too early to tell whether it's the next railroad, the next textile machine, or the next way to lock your exclusive ownership of an ugly JPG of a multicolored ape into a globally-referenceable, immutable datastore backed by a blockchain.

bgwalter

The mechanical loom produced a tangible good. That kind of automation was supposed to free people from menial work. Now they are trying to replace interesting work with human supervised slop, which is a stolen derivative work in the first place.

The loom wasn't centralized in four companies. Customers of textiles did not need an expensive subscription.

Obviously average people would benefit more if all that investment went into housing or in fact high speed railways. "AI" does not improve their lives one bit.

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peab

the goal of the major AI labs is to create AGI. The net utility of AGI is at least on the level of electricity, or the steam engine. It's debatable whether or not they'll achieve that, but if you actually look at what the goal is, the investment makes sense.

jcgrillo

what? crashing the economy for a psychotic sci-fi delusion "makes sense"? how?

tharmas

Isn't the US economy far more varied than it was in the 19th century? More dense? And therefore wouldn't be more difficult for one industry to dominate the US economy today than it was in the 19th century?

0cf8612b2e1e

  Over the last six months, capital expenditures on AI—counting just information processing equipment and software, by the way—added more to the growth of the US economy than all consumer spending combined. You can just pull any of those quotes out—spending on IT for AI is so big it might be making up for economic losses from the tariffs, serving as a private sector stimulus program.
Wow.

gruez

It's not as bad as the alarmist phrasing would suggest. Consider a toy example: suppose consumer spending was $100 and grew by $1, but AI spending was $10 and grew by $1.5, then you can rightly claim that "AI added more to the grow of the US economy than all consumer spending combined"[1]. But it's not as if the economy consists mostly of AI, or that if AI spending stopped the economy will collapse. It just means AI is a major contributor to the economy's growth right now. It's not even certain that the AI bubble popping would lead to all of that growth evaporating. Much of the AI boom involves infrastructure build out for data centers. That can be reallocated to building houses if datacenters are no longer needed.

[1] Things get even spicier if consumer growth was zero. Then what would the comparison? That AI added infinitely more to growth than consumer spending? What if it was negative? All this shows how ridiculous the framing is.

agent_turtle

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dang

Please don't cross into personal attack. We ban accounts that do that.

If you'd please review https://news.ycombinator.com/newsguidelines.html and stick to the rules when posting here, we'd appreciate it.

gruez

>Have you heard of the Dunning-Kruger effect?

Have you heard of the disagreement hierarchy? You're somewhere between 1 and 3 right now, so I'm not even going to bother to engage with you further until you bring up more substantive points and cool it with the personal attacks.

https://paulgraham.com/disagree.html

troyastorino

I've seen this quote in a couple places and it's misleading.

Using non-seasonally adjusted St. Louis FRED data (https://fred.stlouisfed.org/series/NA000349Q), and the AI CapEx spending for Meta, Alphabet, Microsoft, and Amazon from the WSJ article (https://www.wsj.com/tech/ai/silicon-valley-ai-infrastructure...):

-------------------------------------------------

Q4 2025 consumer spending: ~$5.2 trillion

Q4 2025 AI CapEx spending: ~$75 billion

-------------------------------------------------

Q1 2025 consumer spending: ~$5 trillion

Q1 2025 AI CapEx spending: ~$75 billion

-------------------------------------------------

Q2 2025 consumer spending: ~$5.2 trillion

Q2 2025 AI CapEx spending: ~$100 billion

-------------------------------------------------

So, non-seasonally adjusted consumer spending is flat. In that sense, yes, anything where spend increased contributed more to GDP growth than consumer spending.

If you look at seasonally-adjusted rates, consumer spending has grown ~$400 billion, which might outstrips total AI CapEx in that time period, let alone growth. (To be fair the WSJ graph only shows the spending from Meta, Google, Microsoft, and Amazon. But it also says that Apple, Nvidia, and Tesla combined "only" spent $6.7 billion in Q2 2025 vs the $96 billion from the other four. So it's hard to believe that spend coming from elsewhere is contributing a ton.)

If you click through the the tweet that is the source for the WSJ article where the original quote comes from (https://x.com/RenMacLLC/status/1950544075989377196) it's very unclear what it's showing...it only shows percentage change, and it doesn't even show anything about consumer spending.

So, at best this quote is very misleadingly worded. It also seems possible that the original source was wrong.

bravetraveler

Tepidly socially-acceptable welfare

electrondood

For context though, consumer spending has contracted significantly.

intended

Yes, wow. When I heard that data point I was floored.

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throw0101d

From a few weeks ago, see "Honey, AI Capex is Eating the Economy" / "AI capex is so big that it's affecting economic statistics" (365 points by throw0101c 18 days ago | hide | past | favorite | 355 comments):

* https://paulkedrosky.com/honey-ai-capex-ate-the-economy/

* https://news.ycombinator.com/item?id=44609130

rglover

> There could be a crash that exceeds the dot com bust, at a time when the political situation through which such a crash would be navigated would be nightmarish.

If the general theme of this article is right (that it's a bubble soon to burst), I'm less concerned about the political environment and more concerned about the insane levels of debt.

If AI is indeed the thing propping up the economy, when that busts, unless there are some seriously unpopular moves made (Volcker level interest rates, another bailout leading to higher taxes, etc), then we're heading towards another depression. Likely one that makes the first look like a sideshow.

The only thing preventing that from coming true IMO is dollar hegemony (and keeping the world convinced that the world's super power having $37T of debt and growing is totally normal if you'd just accept MMT).

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Gabriel_Martin

MMT is just a description of the monetary reality we're in. If everything changed, the new reality would be MMT.

margalabargala

> Likely one that makes the first look like a sideshow.

The first Great Depression was pretty darn bad, I'm not at all convinced that this hypothetical one would be worse.

agent_turtle

Some of the variables that made the Great Depression what it was included very high tariff rates and lack of quality federal oversight.

Today, we have the highest tariffs since right before the Great Depression, with the added bonus of economic uncertainty because our current tariff rates change on a near daily basis.

Add in meme stocks, AI bubble, crypto, attacks on the Federal Reserve’s independence, and a decreasing trust in federal economic data, and you can make the case that things could get pretty ugly.

margalabargala

Sure, you can make the case that things could get pretty ugly. You could even make the case that things could get about as bad as the Great Depression.

But for things to be much worse than the Great Depression, I think is an extraordinary claim. I see the ingredients for a Great Depression-scale event, but not for a much-worse-than-Great-Depression event.

Hikikomori

Ai bubble, economy in the trash already, inflation from tariffs. Dollar might get real cheap when big holders start selling stocks and exchanging it, nobody wants to be left holding their bag, and they have a lot of dollars.

Which is their (Thiel, project2025, etc) plan, federal land will be sold for cheap.

decimalenough

Selling stocks for what? If the dollar is going down the toilet, the last thing you want to have is piles of rapidly evaporating cash.

marcusestes

Never totally discount _deflationary_ scenarios.

Animats

"Over the last six months, capital expenditures on AI—counting just information processing equipment and software, by the way—added more to the growth of the US economy than all consumer spending combined."

If this isn't the Singularity, there's going to be a big crash. What we have now is semi-useful, but too limited. It has to get a lot better to justify multiple companies with US $4 trillion valuations. Total US consumer spending is about $16 trillion / yr.

Remember the Metaverse/VR/AR boom? Facebook/Meta did somehow lose upwards of US$20 billion on that. That was tiny compared to the AI boom.

brotchie

Look at the induced demand due to Claude code. I mean, they wildly underestimated average token usage by users. There's high willingness to pay. There's literally not enough inference infra available.

I was working on crypto during the NFT mania, and THAT felt like a bubble at the time. I'd spend my days writing smart contracts and related infra, but I was doing a genuine wallet transaction at most once a week, and that was on speculation, not work.

My adoption rate of AI has been rapid, not for toy tasks, but for meaningful complex work. Easily send 50 prompts per day to various AI tools, use LLM-driven auto-complete continuously, etc.

That's where AI is different from the dot com bubble (not enough folks materially transaction on the web at the time), or the crypto mania (speculation and not utility).

Could I use a smarter model today? Yes, I would love that and use the hell out of it. Could I use a model with 10x the tokens/second today? Yes, I would use it immediately and get substantial gains from a faster iteration cycle.

sothatsit

Claude Code was the tipping point for me from "that's neat" to "wow, that's really useful". Suddenly, paying $200/month for an AI service made sense. Before that, I didn't want to pay $20/month for access to Claude, as I already had my $20/month subscription to ChatGPT.

I have to imagine that other professions are going to see similar inflection points at some point. When they do, as seen with Claude Code, demand can increase very rapidly.

keeda

I posted a comment yesterday regarding this with links to a couple relevant studies: https://news.ycombinator.com/item?id=44793392 -- briefly:

* Even with all this infra buildout all the hyperscalers are constantly capacity constrained, especially for GPUs.

* Surveys are showing that most people are only using AI for a fraction of the time at work, and still reporting significant productivity benefits, even with current models.

The AGI/ASI hype is a distraction, potentially only relevant to the frontier model labs. Even if all model development froze today, there is tremendous untapped demand to be met.

The Metaverse/VR/AR boom was never a boom, with only 2 big companies (Meta, Apple) plowing any "real" money into it. Similarly with crypto, another thing that AI is unjustifiably compared to. I think because people were trying to make it happen.

With the AI boom, however, the largest companies, major governments and VCs are all investing feverishly because it is already happening and they want in on it.

Animats

> Even with all this infra buildout all the hyperscalers are constantly capacity constrained, especially for GPUs.

Are they constrained on resources for training, or resources for serving users using pre-trained LLMs? The first use case is R&D, the second is revenue. The ratio of hardware costs for those areas would be good to know.

keeda

Good question, I don't believe they break out their workloads into training versus inference, in fact they don't even break out any mumbers in any useful detail. But anecdotally the public clouds did seem to be most GPU-constrained whenever Sam Altman was making the rounds asking for trillions in infra for training.

However, my understanding is that the same GPUs can be used for both training and inference (potentially in different configurations?) so there is a lot of elasticity there.

That said, for the public clouds like Azure, AWS and GCP, training is also a source of revenue because other labs pay them to train their models. This is where accusations of funny money shell games come into play because these companies often themselves invest in those labs.

rockemsockem

Tbf I think most would say that the VR/AR boom is still ongoing, just with less glitz.

Edit: agree on the metaverse as implemented/demoed not being much, but that's literally one application

HocusLocus

If AI gets us into orbit ( https://news.ycombinator.com/item?id=44800051#44804687 ) or revitalizes nuclear, I'm fine with those things. It's true that AI usage can scale with availability better than most things but that's not a path to world domination.

throwmeaway222

- Microsoft’s AI-fueled $4 trillion valuation

As someone in an AI company right now - Almost every company we work with is using Azure wrapped OpenAI. We're not sure why, but that is the case.

guidedlight

It’s because most companies already have a lot of confidence with Microsoft contracts, and are generally very comfortable storing and processing highly sensitive data on Microsoft’s SaaS platforms. It’s a significant advantage.

Also Microsoft Azure hosts its own OpenAI models. It isn’t a proxy for OpenAI.

edaemon

Lots of AI things are features masquerading as products. Microsoft already has the products, so they just have to add the AI features. Customers can either start using a new and incomplete product just for one new feature, or they can stick with the mature Microsoft suite of products they're already using and get that same feature.

ElevenLathe

MS salespeople presumably already have weekly or monthly meetings with all the people with check-cutting authority, and OpenAI doesn't. They're already an approved vendor, and what's more the Azure bill is already really really big, so a few more AI charges barely register.

It's the same reason you would use RDS at an AWS shop, even if you really like CloudSQL better.

This is the main reason the big cloud vendors are so well-positioned to suck up basically any surplus from any industry even vaguely shaped like a b2b SaaS.

hnuser123456

Nobody gets fired for choosing Microsoft

chung8123

All of their files are likely on a Microsoft store already too.

GianFabien

There's only two reasons to buy stocks:

  1) for future cashflows (aka dividends) derived from net profits.

  2) to on-sell to somebody willing to pay even more.
When option (2) is no longer feasible, the bubble pops and (1) resets the prices to some multiple of dividends. Economics 101.

heathrow83829

yes, but there will always be a #2 with QE being normalized now.

Nition

Just like land :)

lenerdenator

And that's why there's a desire to make interest rates lower: cheap money is good for propping up bubbles.

Now, it does that at the expense of the average person, but it will definitely prop up the bubble just long enough for the next election cycle to hit.

bluecalm

I am curious, why do you think lower interest rates are bad for an average person?

mason_mpls

We want interest rates as close to zero as possible. However they’re also the only reliable tool available to stop inflation.

Youre implying the country exerting financial responsibility to control inflation isn’t good.

Not using interest rates to control inflation caused the stagflation crisis of the 70s, and ended when Volcker set rates to 20%.

nr378

Interest rates set the exchange rate between future cashflows (i.e. assets) and cash today. Lower interest rates mean higher asset values, higher interest rates mean lower asset values. Higher asset values generally disproportionately benefit those that own assets (wealthy people) over those that don't (average people).

Of course, this is just one way that interest rates affect the economy, and it's important to bear in mind that lower interest rates can also stimulate investment which help to create jobs for average people as well.

tharmas

> it's important to bear in mind that lower interest rates can also stimulate investment which help to create jobs for average people as well.

Precisely! Yet the big problem in the Anglosphere is that most of that money has been invested in asset accumulation, namely housing, causing a massive housing crisis in these countries.

verdverm

more money in the economy drives inflation, which largely affects those with less disposable income

This is why in a hot economy we raise rates, and in a not economy we lower them

(oversimplification, but it is a commonly provided explanation)

tharmas

>more money in the economy drives inflation

Not necessarily. Sure, it that money is chasing fixed assets like housing but if that money was invested into production of things to consume its not necessarily inflation inducing is it? For example, if that money went into expanding the electricity grid and production of electric cars, the pool of goods to be consumed is expanding so there is less likelihood of inflation.

micromacrofoot

Low interest rates make borrowing cheap, so companies flood money into real estate and stocks, inflating prices. This also drives up costs for regular people, fuels risky lending (remember subprime mortgages?), and when the bubble bursts... guess who gets hit the hardest when companies start scaling back and lenders come calling?

decimalenough

You really think the AI bubble can be sustained for another three years?

dylan604

15 months. Mid-terms are next November. After that, legacy cannot be changed by election. If POTUS loses control of either/both chambers, he might have some 'splanin to do. If POTUS keeps control and/or makes further gains, there might not be an election in 3 years.

Hikikomori

Gerrymandering in Texas and elsewhere they might stay in power, if they do it's unlikely to change. Basically speed running a fascist takeover.

tick_tock_tick

> he might have some 'splanin to do

About what? Like seriously what would they even do other then try and lame duck him?

The big issue is Dem approval ratings are even lower then Trumps so how the hell are they going to gain any seats?

tick_tock_tick

Honestly it's not really bubbling like we expected revenues are growing way too fast income from AI investment is coming back to these companies way sooner then anyone thought possible. At this rate we have another couple of 20+% years in the stock market for there to be anything left of a "bubble".

Nvidia the poster-child of this "bubble" has been getting effectively cheaper every day.

icedchai

Possibly. For comparison, how long did the dot-com bubble last? From roughly 1995 to early 2000.

thrance

Trump and his administration harassing the Fed and Powell over interest rates is like a swarm of locust salivating at ripened wheat fields. They want a quick feast at the expense of everything and everyone else, including themselves over the long term.

dylan604

Trump knows that the next POTUS can just reverse his decisions much like he's done in both of his at bats. Only thing is there is no next at bat for Trump (without major changes that would be quite devastating), so he's got to get them in now. The sooner the better to take as much advantage of being in control.

pessimizer

The left is almost completely unanimous in their support for lowering interest rates, and have been screaming about it for years, since the first moment they started being raised again. And for the same reasons that Trump wants it, except without the negative connotations for some reason.

Recently, I've heard many left wingers, as a response to Trump's tariffs, start 1) railing about taxes being too high, and that tariffs are taxes so they're bad, and 2) saying that the US trade deficit is actually wonderful because it gives us all this free money for nothing.

I know all of these are opposite positions to every one of the central views of the left of 30 years ago, but politics is a video game now. Lefties are going out of their way to repeat the old progressive refrain:

> "The way that Trump is doing it is all wrong, is a sign of mental instability, is cunning psychopathic genius and will resurrect Russia's Third Reich, but in a twisted way he has blundered into something resembling a point..."

"...the Fed shouldn't be independent and they should lower interest rates now."

skinnymuch

People are upset at the tariffs as taxes because they hurt poorer people more. That’s how it works when everyone pays the same amt of taxes

mason_mpls

I have not heard a single left wing pundit demand interest rates go down

thrance

Who cares? Even if it were true, why is your first reflex to point the finger at progressives when they're absolutely irrelevant to the current government?

xg15

So what will happen to all those massive data centers when the bubble bursts? Back to crypto?

GianFabien

After the dot bomb of 2000, the market got flooded with CISCO and Sun gear for pennies on the dollar. Lots of post 2000 startups got their gear from those auctions and were able to massively extend their runway. Same could happen again.

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BigglesB

I also wonder the extent to which "pseudo-black-box-AI" is potentially driving some of these crazy valuations now due to it actually being used in a lot algorithmic trading itself... seems like a prevalence of over-corrected models, all expecting "line go up" from recent historical data would be the perfect way to cook up a really "big beautiful bubble" so to speak...