Taxpayers Must Not Be on the Hook for Bailing Out the AI Industry
truthout.org
Hundreds of billions of dollars are flooding the AI industry. Economist Gerald Epstein says this bubble could burst.

cross-posted from: https://sh.itjust.works/post/66183461

cross-posted from: https://lemmy.dbzer0.com/post/74936481

… as hundreds of billions of dollars are flooding into artificial intelligence, there are serious concerns that an AI bubble could trigger another bailout with taxpayer money.

In the interview that follows, leading progressive economist Gerald Epstein, who initiated and directs the Game Changers project at the Political Economy Research Institute at the University of Massachusetts Amherst, talks about AI’s impact on finance and the bailout problem and how a transformative public finance strategy can revive democracy, promote equity and social justice, and build strong and sustainable communities.

  • hitmyspot@aussie.zone
    9·
    4 hours ago

    Bailing out the ai industry makes no sense. At least banking, it’s about stability of the financial system. The reason a crash is coming is that ai cannot be wedged into every little place, like they hoped. So it’s not too integrated to fail. If it fails, there will be financial fall out. Bailing out the industry won’t fix their problems with profitability. Nor will it be advantageous for the country or the people.

    The only reason they would, is due to industry pressure, investor pressure, or corruption. A bail out would send a market signal that undermines the free market. Ideas and businesses are meant to fail if they are not sustainable. So, it would offer no short term gains for the majority and long term damage for the investor class.

    I used to be less worried about the rug pull as so much money was from private equity and from companies. However, with the launch of SpaceX and soon OpenAI and anthropic, as well as those companies being shoehorned into index finds, they are trying to transfer the bag. Let’s hope it pops before that happens.

    • ℍ𝕂-𝟞𝟝@sopuli.xyzEnglish
      3·
      3 hours ago

      My uninformed speculation is that they want to drop the bags on funds you have to bail out, pension funds for example, and then we’re effectively bailing out the people who bet on AI, not AI companies themselves.

      And if we don’t, they still win, it’s pensions and savings that take the hit.