And in the other finance news AI bubble is about to pop

 AI Added ‘Basically Zero’ to US Economic Growth Last Year, Goldman Sachs Says

Meta, Amazon, Google, OpenAI, and other tech companies spent billions last year investing in AI. They’re expected to spend even more, roughly $700 billion, this year on dozens of new data centers to train and run their advanced models.

This spending frenzy has kept Wall Street buzzing and fueled a narrative that all this investment is helping prop up and even grow the U.S. economy.

President Donald Trump has cited that argument as a reason the industry should not face state-level regulations.

What growth are we really expecting, though? The primary use for ai right now is reduction in labor and cheapening of services. So if you're not laying off labor you're cutting out services you used to contract. The only growth happening is at the executive level where savings are passed up instead of down.

As well as if you fire the workforce, who's going to spend all the money. Don't spend money like the middle class, working class and the pores do. All the money that the rich people have come from the fact that people actually work and do the actual labor. And surprising no one if you fire them and they have to get a job that pays them less because no one is hiring because of AI replacements, that means there's less money being spent. And the rich hard all their money or technically tied up in assets or they take a loan out against it to have something to spend and not get taxed with.

Ding ding. Productivity and market supply have not been an issue. We’ve seen growth the last several years because we saw great unemployment and wage growth coming out of COVID - more people had more money to spend. Then as AI started to ramp and organizations saw their over-hiring from COVID start to impact margins, the axe came swiftly to cut costs and maintain production with less overhead.

Now we have far less people with dwindling ability to spend, and that will create a negative spiral until there is some sort of external injection of cash to the middle and lower classes. The private sector certainly isn’t going back to less per-head productivity just for society’s sake. 

Amazing how much money they are willing to spend just to not pay humans.