Comment by mlinhares
3 days ago
In this very specific case I don’t think this is what is happening. Data center investment is the only thing keeping GDP positive, the moment this stops the real situation of the economy will become visible to everyone and they don’t want that.
> Data center investment is the only thing keeping GDP positive
This is an incentive to build. Not to manage downside risk.
k-shaped economies, speculative bubbles and 8 business trading astronomical sums of money isn't exactly ideal either
But it makes the numbers look good, GDP go up.
The USA's economy is now so precarious when the AI DC music stops it's about to all just go poof. That has to happen after the election, not before. Between other countries being forced to sell their US bonds (i.e. dedollarize) to afford oil, a 100% tax on all imports, reciprocal trade bans like fresh water from Canada, truckers running out of diesel and having to cancel food deliveries, and non-oil-based energy sources being illegal, the USA is cooked.
I doubt it even matters when. The message regardless is that bad things are because of Democrats, good things are because of Donald.
This is the magic. Historically many Americans voted for Leopards Eating Faces out of either a misplaced belief that their face wouldn't be eaten or a rational but still awful choice that OK, I don't want my face eaten but at least the people I don't like get their faces eaten and that's important to me. Today the idea is you vote for the Leopards Eating Faces and then when your face gets eaten that's explicitly not because of the Leopards Eating Faces. "Facts aren't true" becomes Dogma.
This almost works. Except for the most important thing. Mother Nature. Ma doesn't give a shit that you don't believe her facts are true.
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Here's my attempt[0] (5 months ago) on trying to keep track of all the things that AI had negatively done yet we were forgetting back then. Looking back, I definitely need to update it as so much has happened since then but that is my point, I wish if you could go back and see all the negative things that we most likely forgot AI companies have done. They are just continuously overdoing things and constantly tiring us and having us not keep track of all the things of our past and the process repeats.
GDP is a particularly poor proxy to measure all of this. AI/Datacenters can increase the GDP while the costs (energy,infra, labor,disruption,capital concentration) are distributed elsewhere
It reminds me of the old joke where two economies each eat a dead rat for 10k$ and conclude they just added 20k$ to the GDP/Economy.
I wish to ask if its that AI is increasing our actual economic output but also who really captures the gains and who bears the costs if the boom eventually reverses.
[0]: https://news.ycombinator.com/item?id=47739653
How difficult would it be to convert a data center facility into an internment camp for all these “foreign actors” opposing the government?
That's the ridiculous part, because there is a huge range of positive, profit generating areas to invest in, and it's a tulip madness of concentrated and narcissistic wealth does things like pour trillions in to AI, but an insufficient amount of money into an electrical generation and grid infrastructure and housing. We basically have a centrally mismanaged economy under a banner of "capitalism" as the magical mythology of the era.