The AI Bubble: When the Robots’ Promises Meet Human Greed

6 min readNov 19, 2024

Let’s talk about artificial intelligence — the darling of the 2020s, the golden child of tech that’s going to “revolutionize everything.” AI is supposed to transform industries, cure diseases, and maybe even find a way to stop your uncle from forwarding chain emails. But here’s the kicker: it’s also inflating a massive bubble, and when that sucker pops, it won’t just be messy — it’ll be catastrophic.

And if this happens under a Trump-like administration, we’re not just talking economic fallout; we’re talking societal chaos, finger-pointing Olympics, and maybe a front-row seat to the next season of America Divided.

1. The AI Bubble: Why Does It Float, and Why Will It Burst?

What’s an AI Bubble Anyway?

You’ve heard the hype: “AI will change the world!” Sure, but right now, it’s mostly changing bank accounts — investors’ bank accounts. Startups promising robot utopias are pulling in cash faster than a casino on a Saturday night. Most of these companies haven’t figured out how to make a profit — or even a decent product — but their valuations are soaring. Sound familiar? It should. This is the dot-com bubble all over again, but now it comes with more algorithms and fewer cat videos.

The Chain Reaction of Doom

When this bubble bursts — and it will — the fallout will look something like this:

Market Meltdown: AI stocks will nosedive. Bye-bye retirement funds, hello panic selling.
Corporate Failures: Startups with big promises but no profits will collapse faster than a Jenga tower in an earthquake.
Mass Layoffs: Workers in tech and adjacent industries will get pink slips faster than you can say “machine learning.”
Recession Risks: With confidence in the toilet, we’re looking at reduced spending, stalled growth, and a potential recession.

This isn’t just an economic correction; it’s an implosion that’ll ripple across industries, countries, and dinner table conversations everywhere.

2. The Trump Playbook: Who Gets Blamed This Time?

Step One: Divert and Divide

When things go south, Trump-style crisis management doesn’t fix the problem — it labels the problem. Expect fiery speeches about who’s to blame:

The Foreign Enemy: China, of course. “They stole our technology! They manipulated the markets!” Forget the real issues — let’s just add some fuel to that geopolitical fire.
The Domestic Villains: Silicon Valley elites, academia, immigrant tech workers — take your pick. Suddenly, every coder becomes the enemy of the American factory worker.

Step Two: Amplify Fear for Votes

Nothing unites like fear, right? Rather than stabilizing the markets, expect rhetoric about how AI is an existential threat to “traditional American values.” It’s not just a tech collapse; it’s a moral collapse. And guess who’s the savior? That’s right — the administration that let it happen.

3. Society’s Fuse Gets Shorter

Division Soup: Pick Your Flavor

A burst AI bubble doesn’t just break markets; it breaks society into little pieces:

Class Divide: Working-class folks already struggling with AI-driven job losses will aim their anger at the tech elite. Billionaires might want to avoid their yachts for a while.
Regional Divide: Silicon Valley versus “real America.” Coastal tech hubs could become scapegoats for economic pain in smaller towns.
Racial and Ethnic Divide: Immigrant communities working in tech could face increased discrimination. “They’re taking our jobs!” will make a comeback — this time with more tech jargon.

Escalation: From Anger to Action

Economic despair and political finger-pointing don’t just cause arguments on Facebook; they cause real-world chaos:

Protests and Riots: Disenfranchised groups take to the streets. Peaceful protests devolve into violent clashes.
Extremist Movements: Radical groups use the chaos to push their own agendas, targeting whoever they think is responsible.

4. The Rotten Foundations Get Exposed

Regulatory Gaps: A Recipe for Disaster

Let’s be real: this bubble grew because nobody stopped it. The AI gold rush happened in a regulatory vacuum:

No Oversight: Startups were raking in cash without proving they could deliver. Investors? Too hyped to care.
No Worker Protections: AI has already displaced thousands of jobs, and the bubble’s burst will leave those workers with no safety net.

Trust Takes a Beating

When things collapse, trust collapses too:

In Government: Poor handling of the crisis will make people lose faith in leadership (or whatever shred of faith they had left).
In Tech: AI companies, already viewed as creepy overlords, will become the scapegoats for everything from unemployment to climate change.

5. Can This Mess Be Fixed?

Step One: Stabilize the Economy

Policymakers need to stop the bleeding:

Regulate AI Investments: Transparency and accountability should be more than just buzzwords.
Help Workers: Job retraining, unemployment benefits — give displaced workers a fighting chance.

Step Two: Lead Responsibly

This one’s tricky, especially in a hyper-polarized environment:

Cool the Rhetoric: Stop scapegoating. Start uniting. (Yes, even Trump.)
Work Across the Aisle: A bipartisan plan could stabilize the economy. Imagine that — politicians cooperating!

Step Three: Educate the Public

The public needs real information, not soundbites:

Stop Misinformation: Explain why the bubble burst and how it can be fixed.
Train for the Future: AI isn’t going anywhere. Prepare people to adapt, not just panic.

6. Conclusion: Burst or Bomb?

Here’s the thing: the AI bubble isn’t just about numbers; it’s about narratives. When it bursts, it’ll test not just markets but also leadership, society, and resilience. If the response is divisive, the collapse will drag everyone down. If it’s inclusive, the crisis could spark real change.

But hey, history shows us something else: when the stakes are this high, humanity usually does what it does best — messes it up first, then tries to clean it up later. So buckle up, folks. Whether you’re in a boardroom or a break room, this ride’s about to get bumpy.

If you’re enjoying the content on my blog and would like to dive deeper into exclusive insights, I invite you to check out my Patreon page. It’s a space where you can support my work and get access to behind-the-scenes articles, in-depth analyses, and more. Your support helps me keep creating high-quality content and allows me to explore even more exciting topics. Visit [patreon.com/ChristianBaghai](https://www.patreon.com/ChristianBaghai) and join the community today! Thank you for being a part of this journey!

Christian Baghai | Patreon

Palantir’s Stock: A Comedy of Errors in the Theater of Wall Street | Patreon

What to Expect from the Markets Under Trump: Breaking Down the Numbers | Patreon

China’s “White Emperor” and J-35A: Cutting-Edge or Cut-Rate Comedy? | Patreon

The Sociolinguistics of Action and the Circus of Television Debates | Patreon

How NASAMS Shot to the Rescue: Transforming Ukraine’s Air Defense | Patreon

Soviet and Russian Deception Strategies: Historical and Contemporary | Patreon

Revolutionizing Clinical Reporting: Pharmaverse — Where Data, Logic, and Sanity Collide | Patreon

The Onion Buys Infowars: A Knockout Blow with Laughter | Patreon

The Sarcasm Sideshow: Rita Panahi’s Media Circus and What It’s Really Hiding | Patreon

Uncovering Hidden Connections: A Practical Guide to Canonical Correlation Analysis (CCA) in Clinical Research | Patreon

Pooling in Clinical Statistics | Patreon