This is an opinion piece so naturally it’s only one side of the story.
https://www.nytimes.com/2026/06/29/opinion/ai-economy-affordability.html
The Generational Force Hollowing Out the Economy
By Jennifer M. Harris, The New York Times, June 29, 2026
We are witnessing one of the largest peacetime mobilizations of capital in modern American history. Topping $1 trillion annually by next year, the artificial intelligence buildout is expected to rival or surpass previous technological booms at their peaks — rail, electrification and the internet revolution.
Many economists believe that at a time of rising inflation, a weakening job market and global unrest, this boom is keeping the U.S. economy afloat. “A recession tied to the balloon of A.I.,” is how PJ Vogt, a popular podcaster, describes the perspective. Look more closely, however, and the picture changes. A.I. is vacuuming up so much of our land, talent, semiconductor chips, building materials — and, above all, so much of our money, that it is beginning to crowd out the rest of the economy… [end quote]
The rest of the article is examples of how housing, manufacturing capital expenditures, venture capital and funding for mid-size businesses and non-AI start-ups are being crowded out by AI investments.
The author mentions how heavy investment in railroads and the internet didn’t pay off for a long time. Even though these advances changed society eventually, many investors went bust and recessions followed.
The author makes several policy suggestions which, of course, won’t happen.
Meanwhile, put the book " Manias, Panics, and Crashes: A History of Financial Crises," by Robert Z. Aliber (Author), Charles P. Kindleberger (Author), Robert N. McCauley on your summer reading list.
This is the Eighth Edition 2023. The first edition was written in 1978, before the dot-com and internet bubbles (2000 bust and recession) and Great Financial Crisis (2008 bust and recession).
Wendy