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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On 03 Nov 2025, Joseph Pereira said the following...

And yet, US GDP is growing.

Because of Daddy Trump

IB Joe, Pronouns (FJB/LGB)
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