POOR PROGNOSTICATION
03/04/2026 |
A recent report that went viral and tanked markets suggested investors and workers hurt by AI will reduce spending. OK. But for this to happen, large productivity gains must occur and that will reduce prices and raise real income in unaffected sectors. That will cause spending to rise. The only way this leads to a doomsday scenario is if firms/workers negatively impacted by AI are also excessively leveraged.