Source: Paul Krugman
by Paul Krugman
“Until now, discussions of the potential economic problems created by the AI boom have mostly focused on the future. Will it destroy millions of jobs? Is there a bubble and will it cause a severe recession if it bursts? Will it destroy humanity? While these are doubtless very important questions, attempts to answer them are at best educated guesses. We don’t have to guess, however, about one major effect of the AI boom, because it’s happening right now: Massive spending on data centers is crowding out investment in everything else in the economy.” (10/06/26)
https://paulkrugman.substack.com/p/ai-versus-everything-else