this post was submitted on 11 Oct 2025
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But if AI pops then that doesn't mean that people will stop buying things.
Very few people are employed by the AI industry. Most people's income won't change. Most people's consumption won't change.
Poor people don't have money to spend on much else than food and housing. Anyone with money is going to have stocks in these companies.
Also the AI industry is Microsoft, Meta, Google, Nvidia, AMD and a few others. They employ quite a few people.
So we agree. Poor/ middle class people only hold stocks for retirement. AI bubble popping has no effect on them. The are exactly as they were pre-AI bubble.
Only rich people care about the current stock values. Only rich people are scared of an AI bubble. Only rich people are attempting the "too big to fail" FUD. Big Tech are not banks. There is no knock on effect.
AWS have now had enough outages that any serious company has migration plans and redundancies. If Google fails then the infrastructure stays running even if the current shareholders lose their shirts. The employees that are needed to bring in cash will not lose their jobs.