this post was submitted on 03 Sep 2026
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... as hundreds of billions of dollars are flooding into artificial intelligence, there are serious concerns that an AI bubble could trigger another bailout with taxpayer money.

In the interview that follows, leading progressive economist Gerald Epstein, who initiated and directs the Game Changers project at the Political Economy Research Institute at the University of Massachusetts Amherst, talks about AI’s impact on finance and the bailout problem and how a transformative public finance strategy can revive democracy, promote equity and social justice, and build strong and sustainable communities.

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[–] green_goglin@thelemmy.club 7 points 1 day ago

So, GPUs and chips are being collateralized to secure loans and finance underwriting. We’re so fucked.

[–] nosuchanon@lemmy.world 3 points 1 day ago

It’s just the cost of doing business. They take your tax money and fund an ai data center buildout surveillance state. Just like China.

[–] Treczoks@lemmy.world 9 points 2 days ago (1 children)

No, the taxpayer should not have to pay bailouts. But they will, whether they want or not.

[–] TrollTrollrolllol@lemmy.world 2 points 1 day ago* (last edited 1 day ago)

As long as the Trump Crime Family and our corpo democrats get their cut I'm sure the bailouts will flow.

[–] Canconda@lemmy.ca 80 points 2 days ago* (last edited 2 days ago) (22 children)

Yea but we already know that's what they're gonna do regardless of what anyone says.

Just like we already know things are eventually going to get bad enough that killing the epstien-billionare class becomes both moral and necessary.

[–] cheers_queers@lemmy.zip 31 points 2 days ago (1 children)

i would argue that it is already the moral choice. they are killing the planet

[–] Canconda@lemmy.ca 14 points 2 days ago* (last edited 2 days ago) (1 children)

How can we know either way without speaking freely about it? I think this is an important conversation we should all participate in. (Fully agree with you btw)

[–] cheers_queers@lemmy.zip 9 points 2 days ago (1 children)

we are talking about it right now :) that means we arent the only ones.

[–] Canconda@lemmy.ca 8 points 2 days ago

I can feel the class consciousness forming. Can you feel it?

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[–] Mulligrubs@lemmy.world 58 points 2 days ago (9 children)

There's no industry the US government won't bail out, because the US government is corporate sponsored.

We bail out banks.

We bail out farmers.

We bail out military contractors.

... and on and on and on.

Because they "donate" to bOtH pArTiEs, and they expect a return. They don't do this out of charity.

[–] artyom@piefed.social 20 points 2 days ago* (last edited 2 days ago)

I think it's worth adding that those companies intentionally run shit into the ground, taking the global economy with them, because they know the gov will ball them out.

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[–] dellish@lemmy.world 37 points 2 days ago (1 children)

Didn't the House denounce Socialism in ALL FORMS earlier this week? Therefore bailouts are no longer possible, right?

Oh, I forgot the rules don't apply to rich people. Silly me.

[–] FlexibleToast@lemmy.world 12 points 2 days ago

Socialism wouldn't just bail out an industry.

[–] PattyMcB@lemmy.world 20 points 2 days ago (2 children)

Uhh.... billionaires asking for bailouts is peak failed capitalism.

[–] Quexotic@infosec.pub 6 points 1 day ago

"Socialism for me, but not for thee"

Can I get a bailout if I manage my money idiotically and go bankrupt?

[–] rethnor@lemmy.zip 13 points 2 days ago (3 children)

First time through bailouts and economic crash?

[–] bluesheep@sh.itjust.works 6 points 1 day ago (1 children)
[–] rethnor@lemmy.zip 2 points 20 hours ago

5 years, it's been non stop!

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[–] mangobanana@discuss.online 5 points 1 day ago

And it's not even really artificial intelligence. It's basically just very fast computing.

[–] infinitesunrise@slrpnk.net 5 points 2 days ago* (last edited 2 days ago) (1 children)

Short of a complete societal rejection of the global economic regime, there is no way for us to not be. The expensive deals have been inked. The money has been committed. Parties will be in debt to each other for hundreds of billions of dollars. It doesn't matter if there is a law against taxpayers footing the bill or not, that amount of economic pressure will burst into and flood the larger economy and it will harm us all. It's going to happen no matter what. We're not yet angry enough at the severe economic harm that is about to befoul all of us.

[–] CharlesDarwin@lemmy.world 4 points 1 day ago

Yeah, I am rather amazed that it seems so fashionable to want the AI bubble to pop, as if we won't all be in the direct line of fire. It's like people that were wishing for the housing bubble to pop back in the mid-00s...the people at the top doing all this shit are not going to be the ones that suffer.

I'd rather the AI bubble were to spin down and have a soft landing, but honestly, I have no idea if that is even remotely possible. It seems we cannot just have a stable economy; it's either tulip bulb mania or it's in freefall because the investor class is not making quite as much money as they think they are entitled to.

[–] flandish@lemmy.world 21 points 2 days ago (2 children)

to be fair, we should not bail out ANY industry. if you fail at capitalism so bad you need a bailout- tough shit.

[–] rethnor@lemmy.zip 10 points 2 days ago

Bailout people, not companies

[–] vaultdweller013@sh.itjust.works 6 points 2 days ago (2 children)

I feel like that depends on the industry and context. For example if say most of a specific industry is based in one or two areas and gets devastated by a natural disaster then fine. But if it's just economic failure then they should be taken private with either the states or the feds getting controlling shares.

[–] Treczoks@lemmy.world 3 points 2 days ago

There is a difference between disaster recovery aid and bailout for managment failures.

[–] flandish@lemmy.world 5 points 2 days ago (2 children)

state control is actually “public” or “nationalized” right? - not to be confused with “publicly traded” which is not the same as “the public runs the business” (as it would if a state ran it, being comprised of the public)

Yeah every bailout should mean public ownership. It's the taxpayers buying the company.

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[–] minorkeys@sh.itjust.works 24 points 2 days ago* (last edited 2 days ago) (1 children)

They forced this nation to take massive risks for their personal benefit. These people should be in prison and their companies and assets seized.

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[–] credo@lemmy.world 19 points 2 days ago

That’s not how our system works.

Socialism for the rich, bootstraps for the rest.

[–] teelin134@programming.dev 7 points 2 days ago

Too bad, they already figured out a way to make it happen.

[–] BigMacHole@thelemmy.club 10 points 2 days ago

Socialism is TERRIBLE! That's why ONLY Rich people get to Partake in It!

[–] bss03@infosec.pub 6 points 2 days ago

Bwahaha. Taxpayers will definitely bail out this industry, especially if the crash happens during this administration. That will be true whether or not be force some level of public ownership to reap any rewards that might accrue.

[–] isleepinahammock@lemmy.blahaj.zone 7 points 2 days ago (2 children)

Too late. It's already baked in through the insurance industry reinsurance mechanisms.

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