AI Bubble Watch: Dean Baker Warns of a Burst Ahead

Economist Dean Baker argues that AI hype is inflating a bubble similar to the dot‑com era: productivity gains are not yet materializing, data‑center financing is riding on debt, and a bust could hurt workers and worsen wealth disparities. He warns against relying on hype or policy gimmicks like a government AI fund, and instead advocates traditional worker protections (shorter workweek, stronger unions, higher minimum wage, universal healthcare) to insulate the public from potential shocks.