In 2026, the unemployment rate is projected at 4.28%, with AI capital expenditures at 2% of GDP, amounting to $650 billion. Job postings for software engineers have increased by 11% year-over-year, despite a narrative of job displacement.

Google is competing with Nvidia for dominance in the AI chip market, which has significant implications for the global economy. Nvidia previously held a monopoly on AI chip supply, leading to high demand and a market cap exceeding $3 trillion, but this era is coming to an end as new challengers emerge.

Labor unions have been sidelined in the U.S., leading to outsourcing of jobs to countries like Taiwan, Vietnam, and Mexico. This shift has resulted in a decline of $25/hour jobs with benefits in America.

The $700 billion AI spending boom is leading to shortages of electricians and delaying construction projects. Increased demand for AI is also contributing to rising smartphone prices and limiting investment in other promising innovations.