Excess Returns World War AI | Ben Hunt on the Economic Consequences of the AI Boom
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Nov 28, 2025 
Ben Hunt, founder of Epsilon Theory, dives deep into his analysis of the AI narrative shift from optimism to a looming national security crisis. He discusses how the massive capital expenditures on AI are straining resources and echoing WWII mobilization. Ben warns of the impending consumer squeeze, rising prices, and the risk of stagflation as AI replaces jobs. He proposes a three-policy plan focusing on reshoring, expanding energy, and electricity caps to navigate this challenge. The conversation highlights the urgent need for public awareness and political engagement around these issues.
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AI Narrative Shift To A War Footing
- The US narrative on AI is shifting from a productivity 'carrot' to a national-security 'stick'.
- Ben Hunt warns this reframing pushes the country toward a World War II–style mobilization for AI.
Utility Bill As A Personal Indicator
- Ben Hunt uses his rising personal utility bill as a concrete sign the AI carrot narrative failed for consumers.
- He argues people are working harder, not enjoying a promised leisure dividend from AI owners' gains.
AI Buildout Mirrors WWII Spending
- Projected AI buildout may require roughly the same nominal spending as U.S. WWII mobilization (~$4 trillion over four years).
- Hunt emphasizes most of this capital comes from private sources and crowds out other investment.