This is an important point. The AI-related investment expansion is like a fiscal expansion. So it is crowding out other activities. Crowd out likely not 100% but likely high given that we've basically been at full employment with above target inflation
Brendan Duke
Brendan Duke4.8. klo 21.01
I've seen a lot of takes about how AI-related investment is preventing the economy from falling off a cliff. I think this is wrong--in a (still) strong economy, my guess is that less AI investment would mean lower interest rates and (for example) more housing investment.
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