Source: Paul Krugman
by Paul Krugman
“The rise of generative AI has led to alternating waves of hype and fear. One day the S&P 500 is soaring, led by AI-adjacent companies. A few months later the S&P is falling due to fears that too much money is being spent on datacenters and that AI will undermine business models. It’s still difficult to predict what AI will actually do, and I have no special insights on that front. But while AI is an unprecedented technology, hype and fear about the impacts of new technology — together with hard thinking about the issue — are anything but new. In fact, concerns about the effects of new technology and attempts to model those effects go back more than two centuries, to the early days of the Industrial Revolution and the dawn of economics as an intellectual field.” (03/01/26)
https://paulkrugman.substack.com/p/the-economics-of-technological-change