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Economist Predicts US AI Boom Will Crash
20 Nov
Summary
- US boom driven by AI and speculative investments is set to crash.
- Investments in AI GPUs are like 'digital lettuce,' perishable.
- America's historical obsession with money drives innovation.
Economist McWilliams predicts the current US economic boom, largely driven by artificial intelligence investments, is destined to crash. He characterizes the substantial investments in graphics processing units (GPUs) as "digital lettuce," highlighting their perishable nature and rapid obsolescence.
McWilliams draws parallels to Alexis de Tocqueville's 1840s observations, noting America's unique societal obsession with money and speculation, contrasting it with Europe's focus on hierarchy. This inherent risk-taking attitude, he argues, fuels American innovation and distinguishes it from more risk-averse European economies.
Despite the potential for a market downturn, McWilliams remains optimistic about America's long-term economic resilience. He believes this innovative spirit, deeply rooted in the nation's history and its embrace of economic evolution, will enable the US to navigate future challenges effectively.
