But I’m not saying the jobs lost by AI companies collapsing is gonna cause a recession, I’m saying the AI bubble collapsing, bringing down the stock market with it, will cause a recession and loss of jobs. 35% of the S&P is made up of stocks in the top 7 US tech firms. The stock market is extremely skewed towards these 7 firms, and a large part of their current evaulation is made up from speculation of potential AI returns. When the bubble bursts, everyone who is invested in these firms will feel it. As I said, the top 10% of Americans make up 50% of consumption, can’t find a confirmation but I think that’s the highest in modern history. If this 10% suddenly looses 30-40% of their wealth because a stock market crash, this consumption will be severely affected. They won’t buy as many fancy goods, won’t go on expensive vacations, in general will do much less. We can argue whether having a class of people like that benefits the economy or not, I’d say it doesn’t, but the fact of the matter is that if the stock market were to crash because of AI companies, everyone is affected, because of how much money the 10% spend.