Passive Capital Flows Are Starting To Reverse - This Will Change Everything | Michael Green
Thoughtful Money with Adam Taggart
00:00
Employment Impact of AI and Tight Credit Spreads
AI growth sectors have minimal direct employment impact compared to levered companies, which represent a significant portion of US employment. Tight credit spreads can lead companies to prioritize hoarding labor over layoffs, creating challenges in decision-making. This dynamic may result in reduced hours instead of increased unemployment rates, indicating a possible shift from hoarding to laying off employees as economic conditions change.
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