The Home Front AI Bubbles, Bailouts, and Vulture Capitalism with Grace Blakeley (BONUS)
Nov 15, 2025
In this engaging discussion, Grace Blakeley, an insightful author and commentator on political economy, reveals how AI wealth is inflating consumer spending, benefiting the top 10% while the majority struggle. She critiques the history of bailouts, warning of moral hazards that favor the wealthy, and highlights the political backlash they can provoke. Grace advocates for collective organizing to challenge systemic injustices and ensure a fairer economy. The conversation also touches on the impact of AI on jobs and the urgent need for grassroots action.
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AI Stock Boom Fuels Fragile Consumption
- AI-driven stock gains created a wealth effect that added roughly $180 billion in consumer spending.
- That spending is fragile because it's based on inflated stock prices likely to correct.
Wealth Concentration Now Fuels Spending
- The top 10% now drive about 50% of U.S. consumer spending because they hold 93% of stock wealth.
- That makes today's bubble much more unequal than the 2008 housing boom.
Bailouts Will Likely Protect The Rich
- Expect powerful calls for bailouts as asset prices fall because elites will claim systemic risk.
- Taxpayers are likely to be asked to rescue the very people who benefited most from the boom.
