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   POLITICS      Political Discussions      39,875 messages   

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   Message 38,390 of 39,875   
   Joseph Pereira to All   
   The American Economy   
   03 Nov 25 06:54:59   
   
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   Twenty-two US states are already experiencing economic contraction.   
   Undeniably, some sectors, such as agriculture and retail, are currently   
   suffering extremely hard. Soybeans, fruit, and the Trump feuds with everyone   
   in the world are hitting American farmers (who voted overwhelmingly for Trump)   
   particularly hard.   
      
   We're seeing mass layoffs at many companies, and local banks are in a weak   
   position because the number of bad loans has risen dramatically.   
      
   And yet, US GDP is growing.   
      
   If you look at that, 92% of GDP growth in the US can be attributed to AI   
   investments.   
      
   You read that right... investments, not profits, no revenue. Just investments.   
      
   A huge balloon is being inflated, leaving everyone breathless, and ultimately   
   hoping that the air inside that balloon will become very valuable.   
      
   Will AI save the rest of the US economy?   
      
   AI investments are now greater than the enormous profits of the companies that   
   are investing. Amazon, Apple, Alphabet, Microsoft, Nvidia: their market   
   capitalization is astronomical. So are the profits... for investments.   
      
   But what if those investments ultimately don't yield any profit themselves?   
      
   Are we building a robust economy here, or are we building a house of cards?   
      
   Those AI applications will have to be purchased by companies. But outside of   
   AI, the American economy is meager.   
      
   Who will have money left for expensive AI applications in the future?   
      
   But if there are few buyers, where will AI companies generate revenue and   
   profit?   
      
    .   
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