The Rundown The Fragile State of the AI Economy | Kyla Scanlon
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Sep 21, 2025 
In this engaging discussion, economist Kyla Scanlon, a New York Times bestselling author, explores the concept of three simultaneous economies: speculative, real, and meme. She delves into the fragility of the AI market due to massive data center investments and raises concerns about a potential bubble. Kyla also highlights the alarming record youth unemployment among Gen Z, driven by automation and a shift in financial priorities. Additionally, she critiques the Fed's outdated focus on 2% inflation amidst today's economic turbulence.
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AI Is A Monumental Bet On Hope
- AI investments are largely bets on hope and on building massive physical infrastructure like data centers.
- This makes AI different from past tech manias because it strains national resources and creates systemic fragility.
Data Centers Make An AI Bust Messier
- A bursting AI bubble could be worse than the dot-com crash because of trillions spent on data centers that can't vanish overnight.
- Kyla expects AI will change the internet rather than fully eliminate jobs, making current valuations overstretched.
AI Is Hollowing Out Entry-Level Work
- AI is already affecting entry-level jobs and could harm young people's future work readiness.
- Firms will pursue automation when profitable, risking long-term consequences for youth employment and skills.