Our current stock market is being propped up by AI investments. When the stock market does well, regular people see no benefit, but when the stock market does poorly, it becomes everyone’s problem.
Lots of retirement funds are tied up in Wall Street, so when the bubble bursts, the immediate effect will be old folks who wanna retire will be unable to. The longer term effect will come from corpos who invested heavily into AI trying salvage some money by firing a bunch of people. The even longer term effects will come from the government bailing out the companies that are “Too Big To Fail”, which will of course necessitate cuts to social programs.
I’m sure you’ve heard of The Magnificent Seven? The seven most profitable stocks which just happen to be tech companies heavily invested in AI are the only companies doing big growth right now. The stock market without those seven is anemic, reflecting how the US has had hardly any growth outside the AI circle jerk. Unfortunately, the USA has been acting like the illusionary AI growth is widespread, so when those checks come back to be cashed, the rest of us will suffer.
The profits are privatized but the losses are socialized. For a hypersimplification, the stock market tanking will cause banks to give out less money to places like Walmart which will cause Walmart to increase their prices to make up for the money they aren’t getting. The rich and wealthy will barely feel any effects because they can afford those increased prices. The suffering they will experience will be a slightly smaller yacht. Everyone else will experience higher food prices, higher rent, less job opportunities, lower wages, etc. as the wealthy extract all they can out of us in order to recoup the money they feel entitled to.
In order to deal with the incoming bubble pop in a way that doesn’t unfairly impact regular working folks, we would need the government to force the rich and wealthy to eat the results of their gambling addiction.
Our current stock market is being propped up by AI investments. When the stock market does well, regular people see no benefit, but when the stock market does poorly, it becomes everyone’s problem.
Lots of retirement funds are tied up in Wall Street, so when the bubble bursts, the immediate effect will be old folks who wanna retire will be unable to. The longer term effect will come from corpos who invested heavily into AI trying salvage some money by firing a bunch of people. The even longer term effects will come from the government bailing out the companies that are “Too Big To Fail”, which will of course necessitate cuts to social programs.
I’m sure you’ve heard of The Magnificent Seven? The seven most profitable stocks which just happen to be tech companies heavily invested in AI are the only companies doing big growth right now. The stock market without those seven is anemic, reflecting how the US has had hardly any growth outside the AI circle jerk. Unfortunately, the USA has been acting like the illusionary AI growth is widespread, so when those checks come back to be cashed, the rest of us will suffer.
80 or 85% of the money in the markets is controlled by the wealthy. I don’t mind if those people suffer.
The profits are privatized but the losses are socialized. For a hypersimplification, the stock market tanking will cause banks to give out less money to places like Walmart which will cause Walmart to increase their prices to make up for the money they aren’t getting. The rich and wealthy will barely feel any effects because they can afford those increased prices. The suffering they will experience will be a slightly smaller yacht. Everyone else will experience higher food prices, higher rent, less job opportunities, lower wages, etc. as the wealthy extract all they can out of us in order to recoup the money they feel entitled to.
In order to deal with the incoming bubble pop in a way that doesn’t unfairly impact regular working folks, we would need the government to force the rich and wealthy to eat the results of their gambling addiction.