Artificial intelligence is being paraded as the shining beacon of future economic growth, the next great frontier of innovation. But under the glitz and glam, the reality is far less inspiring. Instead of sparking genuine productivity, AI has become a new “too big to fail” bubble—a corporate welfare machine dressed up in shiny silicon and empty promises. The swelling investments pouring into AI aren’t about creating real value. They’re about propping up a facade of economic prosperity while the average American’s paycheck shrinks and their cost of living soars.
The hype around AI transforming every sector—from medicine to finance—is primarily coming from those with the most financial skin in the game. Meanwhile, everyday Americans feel the pinch, watching their wages lag behind inflation. The big spenders on AI infrastructure, especially data centers, are inflating GDP numbers that mean little to hardworking citizens. This isn’t true growth; it’s a mirage built on massive spending that could collapse the moment private funding dries up or political winds shift. Sound familiar? It’s the exact same pattern we saw before the 2008 housing crash, when construction boomed and economies appeared healthy, only to implode under the weight of hidden fragility.
True productivity gains are nowhere to be found. Instead, businesses report a baffling “productivity paradox” where AI actually creates more work for humans, who must clean up sloppy AI-generated outputs. The promise that AI would save labor hours has turned into a shell game, merely relocating the effort rather than eliminating it. Studies underscore this failure, with most corporate AI pilot programs producing no return on investment. Even the biggest cheerleaders of AI warn that turning pilot programs into actual value is a monumental challenge. Far from being a game-changer, AI is often just rebranding existing work at a higher cost.
What’s most alarming is how AI is evolving from a tool into a government-backed obligation. With trillions projected for AI and computer infrastructure spending—numbers that rival wartime investments—public money and political muscle are stepping in to bail out private gamble after private gamble. This transformation of AI into essential infrastructure hands control over to bureaucrats and politicians who will shield AI companies from failure no matter the cost. Sound like the socialistic bailout habits of the woke left? That’s because it is. The public may end up carrying the financial burden when these “too strategic to fail” companies inevitably stumble.
Meanwhile, millions of American retirement accounts are unknowingly tied to these AI-dependent giants, betting their futures on unstable foundations built on circular investments and government subsidies. This stealth socialization of risk is the same reckless gamble that doomed the housing market and cost taxpayers billions a generation ago—only this time, at an even greater scale. AI may be sold as America’s future, but it’s shaping up as another liberal-supplied trap for hardworking patriots, sacrificing their savings for a slick tech mirage.
When technology becomes untouchable and propped up by political agenda rather than real innovation, it stops being a driver of prosperity and starts becoming a liability for the public. The AI bubble is inflating fast, and no promises from Silicon Valley or Washington can cover up the risk lurking beneath. Americans deserve better than to be the last ones holding the bag while tech elites cash out on hype and handouts. Will the guardians of our freedom allow AI to become just another socialist shakedown? Or will they stand up before it’s too late? The clock is ticking.
Source: American Thinker
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