AI Bubble Economic Impact: How a Burst Could Trigger Recession, Job Losses, and Dot-Com-Level Market Crash | Analysis of Productivity Myths & Investor Risks
AI Bubble Economic Impact: How a Burst Could Trigger Recession, Job Losses, and Dot-Com-Level Market Crash | Analysis of Productivity Myths & Investor Risks Key Takeaways The AI bubble could burst worse than dot-com due to greater market concentration and bigger valuations – we're talking about companies with P/E ratios over 500 Productivity gains are mostly mythical right now – studies show AI actually makes developers 20% slower, not faster Job losses are already happening (10,000+ cuts tied to AI in 2025 alone), but the bigger risk is broader economic collapse Regular investors are exposed through retirement accounts and index funds – you're probably invested in this bubble whether you know it or not The recovery could take years – unlike dot-com, AI infrastructure investments are massive and widespread, meaning a crash would ripple through the entire economy The Productivity Myth: Why AI Isn't Delivering (Yet) Here's the dirty secr...