AI spending is the only thing from keeping the US economy from falling off a cliff
AI spending is currently a major driver of US economic growth, with some warning it may be propping up an otherwise weak economy amid high inflation and geopolitical tensions. Critics argue that the AI boom could burst, leading to job losses and corporate failures, while others remain optimistic about long-term productivity gains. Despite challenges like elevated prices and tariff impacts, strong corporate profits, low unemployment, and tax policies are contributing to economic resilience.
- ▪AI spending is being credited as the primary factor preventing a significant downturn in the US economy.
- ▪Inflation remains elevated at 3.5%, partly due to past fiscal and monetary policies under Joe Biden and Jerome Powell.
- ▪Unemployment claims recently fell below 200,000, the lowest level since 1969 without population adjustment.
- ▪Corporate profits are strong, helping drive stock market records, and are seen as a forward-looking indicator of economic health.
- ▪Veteran strategist Jason Trennert suggests the economy could reaccelerate if not for the ongoing war in Iran impacting energy prices.
Opening excerpt (first ~120 words) tap to expand
Charles Gasparino Business AI spending is the only thing from keeping the US economy from falling off a cliff By Charles Gasparino Published May 2, 2026, 9:57 p.m. ET President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025. AFP via Getty Images The only thing keeping the US economy from falling off a cliff is AI spending: Without it, the nation’s growth numbers would be in the toilet, dragged down by an Iran war that’s goosing gasoline prices and sending US consumers straight to the poor house.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at New York Post.
Discussion
0 commentsMore from New York Post
