this post was submitted on 02 Sep 2026
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The U.S. economy is heading toward uncharted territory. Artificial Intelligence (AI) is transforming business operations and all areas of finance, the national debt is on an unsustainable fiscal path, and most middle-income Americans cannot keep up with rising costs. Moreover, as hundreds of billions of dollars are flooding into artificial intelligence, there are serious concerns that an AI bubble…

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[–] mycodesucks@lemmy.world 9 points 3 days ago

"Bailout" implies that there's a period of problems to get through after which the industry will stabilize. It worked for airlines, banks, and auto manufacturers because those companies do something people need and the business can straighten itself out.

But AI isn't a necessary industry - it's a nascent one, and the idea that restructuring and more money can stabilize it is absolute nonsense. If a crash hits, not only will the bill come due, but future potential customers will smell the stink of failure and avoid it, further reducing the likelihood that this shit can ever pay for itself.

The previous bailouts were IDEOLOGICALLY appalling and awful, and we lost a little money on the airlines and auto industry, but on banks the government actually made around 20 billion in profit on interest - the bank bailouts were a net positive to taxpayers.

AI will NEVER be able to pay back a bailout. It's a money pit.