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A comment on I'm Not Convinced the AI Bubble Exists. Parent comment

Re:I'm Not Convinced the AI Bubble Exists by tsimionescu on Monday November 09, 2026 @02:37AM (#50422319)
They actually are compatible, because the idea of replacing workers with AI in large numbers isn't compatible with the kind of economic growth these valuations are predicated on. We are not living in pre-industrial revolution times, where most people are wasting huge human effort on food growth and physical tasks, having room to move into more white collar jobs.

So, if you have massive unemployment because AI really is cheaper than labor, you'll get a massive reduction in revenue for virtually every industry, collapsing all of these valuations. Even for B2B companies, Google isn't going to be making much money selling ads to unemployed people who can't afford to buy anything.

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Re:I'm Not Convinced the AI Bubble Exists by matteoraso on Monday November 09, 2026 @01:57PM (#50429932)
This assumes that displaced workers are going to be unemployed forever. Blue collar jobs are more resistant to AI automation, so we'll see an increase in manual labour and manufacturing.
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Re:I'm Not Convinced the AI Bubble Exists by tsimionescu on Tuesday November 10, 2026 @06:44AM (#50438945)
No, it just assumes that they will be less well payed, without any commensurate increase in anyone else's pay.

You can't have economic growth while employees are getting paid less overall, since employees make up the vast majority of consumers, and so of the demand side of the economy. So less/less well paid employees in the whole economy => decreased demand for all goods and services => no economic growth => no trillion dollar revenues.

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