"Writing in the Financial Times, noted fund manager and former Morgan Stanley investor Ruchir Sharma argued that the US economy has more or less become "one big bet on AI." It's a bold claim, but it's not hard to see his case. As many economists have been shouting to the heavens, the numbers are looking increasingly grim as wild tech investments keep an otherwise horrendous economy aloft."
"As Sharma notes, the billions of dollars being dumped into AI now account for 40 percent of US GDP growth in 2025, with no signs of slowing down. Meanwhile, AI companies have accounted for 80 percent of growth in American stocks. Even though the stock market isn't synonymous with the broader economy, Sharma writes that its remarkable growth is drawing in the green stuff from all corners of the globe."
US economic indicators show rising utility bills, soaring import costs, and stagnant job growth alongside increasing home foreclosures and mounting government debt. Massive private investment in AI now drives a disproportionate share of economic expansion, accounting for 40 percent of 2025 GDP growth and 80 percent of stock-market gains. Capital inflows into AI and tech stocks concentrate wealth among the already rich, with the top 10 percent responsible for roughly half of consumer spending. Immigration and productivity challenges exacerbate underlying weaknesses. Public headlines remain optimistic largely because AI-related investment and stock performance obscure broader economic fragility.
Read at Futurism
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