I agree, but I gotta point out the area you’re wrong. It’s the internet after all. So don’t take my hyper-focus to heart.
The investors are absolutely aware. They don’t care if AI has any material value. They will happily invest in a bubble and inflate far beyond what anyone believes is possible. The capitalist system has only evolved to be BETTER for capitalist when the bubble pops. They know this. They literally have lobbies dedicated to ensuring their wealth is protected.
I think we confuse the “irrationality of the market” with the investors being irrational themselves. They are doing exactly what any rational investor would do in an economic system that has been built to favor them.
I’m sure you’re aware of this given your perspective. But I think it’s important to use the right vocabulary to describe this. The problem is not a “broken system” with irrational actors. The system is working EXACTLY as intended and the investors are acting completely rationally within the economic system that has been created for their benefit. This isn’t “bad capitalism” that needs regulation. This is just capitalism.
Bubbles and crashes are not something that investors are working hard to avoid. They are a feature of the contradictions of capitalism. Capitalist are very much aware of them and have ensured they can benefit from them while the working class takes the losses.
I agree, but I gotta point out the area you’re wrong. It’s the internet after all. So don’t take my hyper-focus to heart.
The investors are absolutely aware. They don’t care if AI has any material value. They will happily invest in a bubble and inflate far beyond what anyone believes is possible. The capitalist system has only evolved to be BETTER for capitalist when the bubble pops. They know this. They literally have lobbies dedicated to ensuring their wealth is protected.
I think we confuse the “irrationality of the market” with the investors being irrational themselves. They are doing exactly what any rational investor would do in an economic system that has been built to favor them.
I’m sure you’re aware of this given your perspective. But I think it’s important to use the right vocabulary to describe this. The problem is not a “broken system” with irrational actors. The system is working EXACTLY as intended and the investors are acting completely rationally within the economic system that has been created for their benefit. This isn’t “bad capitalism” that needs regulation. This is just capitalism.
Bubbles and crashes are not something that investors are working hard to avoid. They are a feature of the contradictions of capitalism. Capitalist are very much aware of them and have ensured they can benefit from them while the working class takes the losses.