PART 2: HOW ROBUST IS THE AI BUBBLE AND WITH IT SPENDING?

This is the second article which should be read together with the earlier article on inequality. In the earlier article I pointed out how the top 10% of income earners now consume half of what is produced because of rising inequality. Further, that their propensity to consume is contingent on capital gains in the markets, much of which is driven by the rising values of AI corporate shares. It therefore follows that any collapse in shares will in turn impact personal consumption as the top income earners, feeling poorer, retrench. This article looks at that likelihood. Both articles will appear on theleftlane.media website.