The Dark Side of the AI Boom Is It’s Masking Weak Investment
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I’m Chris Anstey, a senior economics editor in Boston, and today we’re looking at reporting by Shawn Donnan, Brooke Sutherland, Mark Niquette and Alexandre Tanzi, on the dark side of the AI boom. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.
“Crowding out” has been a concept in economics for some time — typically applied to assessment of fiscal policy, where in theory there’s some amount of government borrowing so large that it “crowds out” companies from getting credit they need to invest and grow.