Why Aren't We Partying Like It's 1999? – Paul Krugman
11 hours ago
- #AI
- #Trump
- #Economy
- Economists expected tariffs to dominate 2025's economic story, but AI investment has overshadowed it.
- AI spending has buoyed the economy, preventing a recession, despite disruptions from Trump's tariffs.
- Unlike the 1990s tech boom, the current AI boom hasn't led to widespread economic optimism.
- Consumer sentiment is low, similar to levels during the global financial crisis, despite economic growth.
- The labor market is frozen with low hiring and quit rates, reflecting worker uncertainty.
- AI is causing widespread anxiety about job loss, contrasting with the internet's initial reception.
- Political instability under Trump is affecting economic perceptions, with claims of a great economy conflicting with negative narratives.
- The tech boom may end in a bust, with Trump's policies potentially leading to future economic pain.