"The economy is expanding, but reliance on the artificial intelligence boom - and the stock-market wealth it's generated - makes growth look lopsided. Play Video Democrats trounced Trump's Republicans last week in elections where cost-of-living anxieties loomed large. Half of the respondents in an October survey by the Harris Poll for Bloomberg News said the economy wasn't working for them - up from 41% in February - and only one-third said their finances were better than a year ago."
""The economy remains resilient on the surface, but it's increasingly dependent on three narrow, interconnected 'A-pillars': affluent consumers, artificial intelligence-fueled investment and asset price gains," wrote Gregory Daco, chief economist at EY-Parthenon and president of the National Association for Business Economics. "If any one of these pillars weakens, the overall structure would become much less stable.""
Economic expansion is occurring, but growth appears lopsided and concentrated in a few areas. Voter sentiment and consumer surveys show rising cost-of-living anxiety and declining financial confidence, with half saying the economy is not working for them and only a third reporting improved finances versus a year ago. A record-long government shutdown has produced patchy data. Business investment has benefited from tax incentives and the race to build data centers, while trade wars and cooling job market activity have restrained broader capital spending. Analysts warn that dependence on affluent consumers, AI investment and asset gains creates vulnerability if any pillar weakens.
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