‘It’s the inflation, stupid’: US voters sour on the economy despite economic growth

Nearly seven years have elapsed since Donald Trump took the oath of office and delivered his inaugural address, proclaiming the beginning of a "Golden Age of America." Despite this grand promise, recent polling indicates that U.S. voters are increasingly dissatisfied with the state of the economy, despite the nation's robust economic growth.

The economic boom, fueled by a surge in artificial intelligence investment, has been a significant driver of this growth. According to a study by Stijn van Nieuwerburgh published by the Brookings Institution, AI-related investments by major tech firms are projected to reach a staggering $10.3 trillion by 2032, accounting for 3.6% of the GDP. The United States has 5,098 AI-related data centers and projects currently in operation or under construction, with a combined capacity of 395.1 gigawatts.

This massive investment is expected to boost the U.S. economy by up to 1.9% of GDP this year, according to estimates from Goldman Sachs. However, while the AI boom is having a tangible impact on the economy, it has also sparked social unease. The construction of these massive data centers is consuming a significant portion of capital spending, with estimates suggesting that $800 billion could be invested this year.

Economist Jared Franz believes that the full potential of AI's impact on the U.S. economy may be underestimated by between 0.5 and 1 percentage point. The frenzied investment race in the AI sector has led to the emergence of highly leveraged companies with complex interconnections, raising concerns of a potential bubble. Despite these concerns, policymakers remain optimistic about the substantial productivity gains that AI could deliver as the industry matures.