Billionaire tech CEOs have often insisted that AI is ushering in an era of plenty, in which automation will provide unthinkable abundance even among the poorest in society. After the pandemic, you might expect that labor share to return to that 75 to 76 percent baseline, but that’s not what happened. Americans, in other words, are buying stuff at levels their paychecks can’t justify, propped up by the AI bubble. It all supports Baker’s long-running thesis that the AI bubble bursting would actually be a phenomenal economic development for working class Americans. “The sooner the AI bubble bursts,” he explains, “the better it will be for almost all of us, except the AI whizzes.”More on labor: Business Leaders Suddenly Fearful as Anger Surges Over AI Replacing Human Jobs