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The AI boom is masking real problems in the US economy
The situation is worse than putting all your eggs in one basket.
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The US economy is being bolstered by a remarkable investment boom in artificial intelligence, says the writer.
PHOTO: BLOOMBERG
Natasha Sarin
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Since President Donald Trump took office, the economy has followed a pattern. The administration does something outlandish – tariff rates at levels not seen in a century, trying to fire a Federal Reserve governor – and economists, myself included, warn of the deep risks.
So far, though, the economy has kept chugging along. The market did plummet in April over the “Liberation Day” tariffs, but it has since rebounded many times over, rising to new highs 30 times in 2025. Risky policies that alarm mainstream economists don’t appear to be having much of an effect on the economic indicators we follow.
