Health Care Is Just as Dangerous for the Economy as AI

Nearly every diagnosis of the current strength of the US economy notes two crucial points. The first is that the stock market is buoyed by the staggering investment and bullish expectations around AI. The second is that the labor market is being propped up by job gains in health care.

By this point, the contours of the AI bubble are understood and accepted — Moody’s even made a flow chart of how a valuation collapse of key companies could quickly ensnare the broader economy. At the same time, there is endless reporting about new AI products, from traditional news coverage to a cottage industry of reviewers.